Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Kumtor gold mine.
Canada’s Centerra Gold (TSX:CG) said Friday that the Kyrgyz Republic has extended its permits for emissions into the atmosphere and waste disposal into the tailings pond from its Kumtor gold mine, until the end of the year.
Negotiations between the parties, however, are expected to continue over the summer.
“Centerra and Kumtor expect to continue discussions with [the country’s State Agency of Environmental Protection and Forestry] SAEPF to obtain the approval of the 2015 annual mine plan,” Centerra said in today’s statement.
However, it warned that if such approval is not received, it would have to halt operations at Kumtor, with “adverse” impact on Centerra’s future cash flow, earnings, results of operation and financial condition.
Earlier this year, rumours circulated pointing to an imminent nationalization of the mine, which was later denied by Kyrgyzstan authorities.
According to Centerra, the vast open pit Kumtor gold mine is expected to produce 470,000-520,000 ounces at an all-in sustaining cost between $819-$908 per ounce this year.
