Despite news media reports that the Supreme Court of the Kyrgyz Republic has issued an order to the country's government to suspend some agreements and licenses pertaining to the Kumtor Project, Centerra Gold officials Monday said they aren't worried yet.
The Vice Speaker of the Kyrgyz Parliament held a news conference Monday morning announcing the order, apparently released in conjunction with an earlier lawsuit he had filed against the government.
However, John Pearson, Director of Investor Relations for Centerra Gold, told Mineweb Monday that the Vice Speaker had already announced he would withdraw his lawsuit based on a new Kumtor agreement scheduled to be ratified by the Kyrgyz Parliament on May 29th.
In a news release, Centerra said the company has not been informed of the Supreme Court order and is seeking further information and will seek clarification from the government.
Even if the order is proven to be valid, any shutdown of Kumtor would be brief, according to Pearson. Once the new agreement is ratified by Parliament, the Vice Speaker's lawsuit would be withdrawn.
Gold production at Kumtor for the full year 2008 is forecast to be between 580,000 to 620,000 ounces with total cash cost of between $380 to $420 per ounce.