Kyrgyzstan said Wednesday that it had launched the process of kicking out its largest foreign investor, Canada's Centerra Gold, over "large-scale corruption" at the impoverished country's largest gold mine.

Kyrgyz authorities earlier this year seized control over the mine formerly operated by the company which accounted for 12.5 percent of Kyrgyzstan's GDP in 2020 and has long fuelled political struggles in the ex-Soviet republic.

The country's security committee said the process of cancelling the agreement between the Kyrgyz government and Centerra had aready begun, with an ongoing investigation finding "large-scale corruption throughout the entire period of cooperation" between the government and the companies operating the mine.

Centerra, a company listed on the Toronto Stock Exchange, admitted in May that it was "no longer in control of the Kumtor Mine and can no longer ensure the safety of the mine's employees or operations".

In a statement on its financial results Tuesday, the firm said that it now considered the Kumtor mine among its "discontinued operations".

A host of high profile Kyrgyz politicians have been either questioned or detained in connection with the government's ongoing investigation into alleged graft at the gold mine.

Kyrgyz authorities earlier this year seized control over a gold mine formerly operated by Canada's Centerra Gold which accounted for 12.5 percent of Kyrgyzstan's GDP in 2020.
Kyrgyz authorities earlier this year seized control over a gold mine formerly operated by Canada's Centerra Gold which accounted for 12.5 percent of Kyrgyzstan's GDP in 2020. AFP / VYACHESLAV OSELEDKO

Authorities earlier this month questioned Kyrgyzstan's first president Askar Akayev, who was in charge of the country at the time Kumtor began operations and had not visited his homeland since he was ousted from power during street protests in 2005.

The security committee said Wednesday that Akayev had been charged over his role in an ownership restructure that resulted in the government receiving a smaller share of the gold mine.

The committee did not explain why Akayev was able to leave the country and return to his place of residence in Russia following his short visit for questioning last week.

After Akayev was overthrown, successive Kyrgyz governments sought revisions to the agreement over the mine, which is also the subject of longstanding allegations of environmental violations.

Centerra has always denied any wrongdoing.

President Sadyr Japarov's sudden rise to power last October after getting freed from jail during a political crisis was particularly bad news for Centerra.

As an opposition politician, Japarov led an unsuccessful attempt inside parliament and on the street to nationalise the mine as he oversaw several chaotic rallies against the company.