The gold price
Disputes over mine 'could damage gold output' - 3 June 2008
Gold output at the Kumtor project in Kyrgyzstan is likely to fall in the coming months due to disagreements over ownership, tax and budgeting.
The country's Supreme Court has intervened in an attempt to resolve the disputes, but it has ruled that no new exploration can be carried out until court proceedings have been resolved.
This could support gold prices in the long term as it is likely to increase demand for the precious metal amid fears that the global supply is dwindling.
Kyrgyzstan's deputy parliament speaker Kubanychbek Isabekov told Reuters that he blames Centerra, the Canadian owner of the mine, for the problems.
"They are in the wrong; they have not shown up for the talks. We propose to renew the negotiations and give the commission another month," he said.
According to Mineweb, John Pearson, director of investor relations for Centerra Gold, reports that the Kumtor mine contains some 4.9 million ounces of gold.
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The country's Supreme Court has intervened in an attempt to resolve the disputes, but it has ruled that no new exploration can be carried out until court proceedings have been resolved.
This could support gold prices in the long term as it is likely to increase demand for the precious metal amid fears that the global supply is dwindling.
Kyrgyzstan's deputy parliament speaker Kubanychbek Isabekov told Reuters that he blames Centerra, the Canadian owner of the mine, for the problems.
"They are in the wrong; they have not shown up for the talks. We propose to renew the negotiations and give the commission another month," he said.
According to Mineweb, John Pearson, director of investor relations for Centerra Gold, reports that the Kumtor mine contains some 4.9 million ounces of gold.
Looking to Buy Gold today? For direct access to live Gold Market prices - and to save up to 80% compared with coin dealers' fees - click through to BullionVault now…
Goldbug, 03 Jun '08
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