September 11, 2017 / 12:30 PM / a year ago

Canada's Centerra settles mine dispute with Kyrgyzstan

Sept 11 (Reuters) - Centerra Gold Inc said on Monday it reached an agreement with Kyrgyzstan over the Kumtor gold mine, ending a dispute with the Central Asian country on profit sharing at the Canadian company’s biggest mine.

The agreement terminates a court order which, among other things, restricted the ability of Centerra’s Kyrgyz unit to transfer cash to Centerra, the company said.

Under the deal, the Canadian miner will make a onetime payment of $50 million to a new, government-run nature development, alongside annual payments of $2.7 million.

Centerra will also pay $7 million to a cancer care support fund and a further $3 million one year after the deal closes.

The agreement comes less than a week after Centerra reached a proposed settlement with the Kyrgyz Republic on similar terms.

Toronto-based Centerra is the biggest foreign investor and taxpayer in Kyrgyzstan, contributing up to 10 percent of the impoverished nation’s gross domestic product. The state owns a 26.6 percent stake in Centerra. (Reporting by John Benny in Bengaluru; Editing by Sai Sachin Ravikumar)

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