PRECIOUS METALS

LBMA suspends Kyrgyzaltyn JSC

The London Bullion Market Association has suspended gold refiner Kyrgyzaltyn JSC from its “Good Delivery List” for failing to meet the requirements of its responsible sourcing programme.

Staff reporter
 A dore bar produced at the Kumtor gold mine in the Kyrgyz Republic

A dore bar produced at the Kumtor gold mine in the Kyrgyz Republic

State-owned Kyrgyzaltan is a major shareholder of Centerra Gold, which is trying to regain control of its flagship Kumtor gold mine in the central Asian nation.

The government seized control in May citing environmental and safety concerns.

Centerra had said in June it welcomed the LBMA's decision to "investigate Kyrgyzaltyn's attempted fraud and appreciate the association's commitment to treat this case as a high priority".

The LBMA announced the suspension on Friday but did not provide details for its decision.

"All production from the refinery will no longer be accepted as Good Delivery from this date," it said.

The loss of accreditation will restrict Kyrgyzaltyn's access to the mainstream market because major banks which dominate precious metals trading tend to handle only metal from refineries on the LBMA's "good delivery" list, Reuters reported.

The government-controlled Kumtor Gold Company's website says its dore bars are purchased at the minesite by Kyrgyzaltyn JSC for further processing at its refinery under a gold and silver sale agreement signed by KGC, Kyrgyzaltyn and the government.

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