TORONTO - Centerra Gold Inc. (TSX:CG), a Toronto-based miner with gold operations in central Asia, says it has suspended international arbitration proceedings in a commercial dispute with the Kyrgyz government while it continues talks with the government on the Kumtor gold project.
The arbitration hearings started by the company had been previously postponed to Sept. 29, the company said late Thursday.
"The parties have agreed that this suspension will allow for these discussions to continue and for the parties to concentrate on resolving outstanding issues relating to the project," Centerra said in a release.
Centerra has been working to resolve uncertainty over its Kumtor mine and has been trying to negotiate a three-way agreement on Kumtor that would lower its ownership stake in the central Asian project.
Under the proposed deal, the portion of Centerra owned by parent Cameco (TSX:CCO) would fall to 41 per cent from 53 per cent, while the Kyrgyz government's interest would grow to 29 per cent from 16. Public shareholders would own the remaining 30 per cent.
The deal also would increase Centerra's concession in Kyrgyzstan by more than 250 square kilometres.
Centerra is 53 per cent owned by Cameco, the world's biggest uranium miner.
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