Kyrgyzstan Foreign Miners Face Tumbling Shares; Mining Investments Uncertain

11 April 2010 (Last Updated April 11th, 2010 18:30)

Foreign mining companies with operations in Kyrgyzstan are suffering from last week's uprising which resulted in the president fleeing the capital. The miners, including Centerra and Chaarat Gold, said operations in remote locations have not been affected by the political turmoil.

Foreign mining companies with operations in Kyrgyzstan are suffering from last week's uprising which resulted in the president fleeing the capital.

The miners, including Centerra and Chaarat Gold, said operations in remote locations have not been affected by the political turmoil.

Canadian gold miner Centerra said its Kumtor gold mine in the country's south-east continues to operate although the company's shares declined 16% last week.

Concerns about the mine's possible nationalisation were apparently solved last year after Cameco Corp, Centerra's former parent company, made a deal that doubled the Kyrgyz Government's stake in the company.

Analysts say that the volatile political environment raises risks for the ownership agreement from the critics who opposed the deal earlier.

The Kumtor gold mine is the largest foreign investment in Kyrgyzstan and produced more than 525,000oz of gold last year.