Kyrgyzstan has high chance of winning lawsuit against Centerra: Environment Committee

Bishkek, May 17, 2021 . / Kabar /. Kyrgyzstan has sufficient documentary evidence proving the damage caused by Centerra Gold Inc. to the environment of Kyrgyzstan, and, accordingly, has a high chance to win a lawsuit in an international court, chairwoman of the State Committee on Environment and Climate Dinara Kutmanova said at an extraordinary session of the Jogorku Kenesh.

The Kyrgyz Parliament considered on Monday the report of the State Commission on Kumtor mine.

“So far we have filed a lawsuit only on the fact of waste storage on the glaciers, but they also violated Article 15 of the Law "On Environmental Protection", and we can additionally sue for pollution, because they have not built treatment facilities for treatment of quarry water, everywhere there is an excess of PEL. Thus, this is just the beginning," Kutmanova said.

She also cited examples of successful completion of court cases in connection with environmental violations, adding that environmental management issue is very relevant all over the world.

In February 2021, the Jogorku Kenesh established a State Commission to inspect Kumtor's operations to review compliance with norms and requirements for the rational use of natural resources, environmental protection, safety of production processes and social protection of the population, as well as implementation of decisions of previous parliamentary.

On May 7, the Oktyabr District Court of Bishkek satisfied the claim of four individuals to Kumtor Gold Company CJSC and obliged the company to pay to the state KGS 261 billion 719 million in damages.

Claimants asked to recognize waste storage on Davidov and Lysyi glaciers during development of Kumtor gold deposit as illegal and to exact from the company KGS 261.7 billion of damage to the state. The court fully satisfied the claim.

In addition to the amount of damages, the court ordered to recover from the company a state duty of KGS 1.3 billion. In total, the company is obliged to pay KGS 263 billion, according to the current exchange rate this is USD 3.1 billion.

Kumtor Gold Company CJSC is a subsidiary of the Canadian gold mining company Centerra Gold Inc. It develops the largest gold deposit in Kyrgyzstan Kumtor. Kyrgyzstan, represented by Kyrgyz Altyn OJSC, owns 26.2% of shares in Centerra Gold Inc. and holds the largest stake in Centerra.