ESG

Kaz comes a cropper in Kyrgyzstan

London-listed company ordered to down tools at copper-gold mine

Staff reporter

This article is 8 years old. Images might not display.

In a two-paragraph statement, the London-listed company said the government had enforced the stoppage at the openpit mine for a period of three months.

The mine produced 7,000 tonnes of copper cathode and 38,000oz of gold in 2016, so is by no means a big part of the company's 250,000t-plus copper portfolio, but the move sends a negative message to an investment community wary of putting any money into the country.

Kaz said it did not know why the mine was suspended and believed Bozymchak to be in compliance with its obligations.

Reuters has linked the move to the recent presidential election in the Kyrgyz Republic.

During the country's presidential election process, Kazakh president Nursultan Nazarbayev met a Kyrgyz opposition candidate.

This, according to the newswire, led to some political leaders in the republic accusing the Central Asian powerhouse of interfering in the elections.

Kaz, meanwhile, said it was looking to strike up discussions with the government as soon as possible to rectify the situation. It said it's group production guidance of 250,000-270,000t for 2017 remained unchanged.

A day after Kaz announced the suspension, it issued another statement saying Bozymchak had resumed full production and the government-enforced suspension had been cancelled.

It was only two months ago that investor sentiment towards the Kyrgyz Republic looked to be on the up after a long-standing fight between the country's biggest miner, Centerra Gold (CN:CG), and the government was brought to a halt following a US$60 million deal.

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

Expert-led Insights reports and Analytics tools built on robust data, rigorous analysis and expert commentary covering mining Risk, Projects, ESG, Leadership, and Investor Sentiment.

editions

Leadership Insights 2025

Leadership Insights reveals key trends in priority mining issues through interviews with 15+ top mining company executives and an industrywide survey.

editions

Mining IQ Risk Analytics

Risk Analytics offers interactive access to World Risk Insight data, allowing you to customise risk views, benchmark jurisdictions, explore data behind scores and read expert commentary to guide your decision-making.

editions

Project Pipeline Index 2025

View our 50 top mining projects, handpicked using a unique, objective selection process from an expanded database of 600+ global assets.

editions

Investor Sentiment Insights 2025

Exclusive insights into the plans, priorities and preferences of 130+ mining investors and top factors influencing investment decisions in 2025.