The Kumtor gold mine operated by Centerra Gold, a Canadian company is being gradually nationalized as Kyrgyzstan’s new president Sadyr Japarov launches a campaign against foreign corporations.
Japarov who has been previously sentenced to jail for his critique of the previous government believes that only the country’s elites were benefiting all this time from the resources of Kyrgyzstan.
Before being elected as the president of the country Japarov was previously the main figure in the movement against foreign companies and corporations enriching at the expense of the Kyrgyz people.
The Canadian Centerra Gold company has long been going through hardships. Centerra was accused of committing environmental violations and dumping mining waste on nearby glaciers.
Later, according to a court ruling, the Kumtor gold mine went under governmental control for 3 whole months.
Finally, on the 14th of May president Sadyr Japarov announced his will to nationalize the mine and embarked on this path by arresting several high-ranking officials who were allegedly connected to the financial crimes at Kumtor.
The Canadian company denied all allegations, filed for bankruptcy in the US, and said that it plans to force compensation from the Kyrgyz government.
“The seizure of the mine is based on false information and groundless allegations that undermine everything we have built together. We fear that the government’s unjustified action will put thousands of well-paying jobs and the businesses of hundreds of Kyrgyz suppliers at risk.” stated Scott Perry the president and CEO of Centerra Gold.