Kyrgyzstan's economy will grow by barely a quarter of the 7.5 percent originally forecast because of the collapse in output from the nation's flagship venture with Canada's Centerra Gold.
The three losing bids were all from the US and the deal marks a decisive shift in the commodities trading business away from Chicago and London to Asia.
Illegality in the mining sector has deprived state governments of badly needed revenues, threatened the industry with costly and unpredictable shutdowns, and generated political chaos that helped bring down two state governments in 2011 and 2012.
Shares in Gabriel Resources were hammered again over the latest Rosia Montana shambles, dropping 6.9% on Thursday. Its losses for the week now top 15% and it also received the dubious honour of being included in the S&P TSX grouping of most volatile stocks.
The divergence between spot gold price and the share price of gold producers is due to a reluctance by companies to pass profits onto investors, says Evy Hambro BlackRock's top gold manager.
