Kyrgyzstan wants larger stake in Centerra, more tax

BISHKEK, June 4 (Reuters) - Kyrgyzstan's parliament urged the government on Wednesday to seek a larger stake in the Kumtor gold mine and press for a higher tax rate in its talks with Canada's Centerra Gold (CG.TO).

Worries about potential nationalisation of the mine sent Centerra stock down 8 percent on Monday when its framework agreement with the Central Asian state expired after a June 1 ratification deadline.

Kyrgyzstan's deputy parliament speaker Kubanychbek Isabekov said a parliamentary committee urged the government to continue talks while seeking more favourable terms.

"We have suggested a tax rate of 18 percent," Isabekov said. "It was (also) suggested (Kyrgyzstan should get a) 40 percent stake," he said.

The earlier deal, turned down by the parliament, would have doubled the country's stake in Centerra to about 30 percent, while uranium miner Cameco's (CCO.TO) stake would drop to just under 40 percent from 53 percent.

The agreement also aimed at replacing Kumtor's current tax regime with a simplified system taxing revenue at 11 percent in 2008, 12 percent in 2009, and 13 percent thereafter.

When announced on Aug. 30, the deal seemed to quell concerns about the asset's possible nationalisation, but talks hit a stumbling block after the parliament challenged the government's decision and sought to revise the agreement."

Kumtor's production accounts for about 4 percent of the impoverished country's gross domestic product. (Reporting by Olga Dzyubenko; Writing by Olzhas Auyezov; editing by Rory Channing)