World Bulletin/News Desk
Kyrgyzstan imposed a state of emergency on a northern district on Friday to protect Centerra Gold's Kumtor mine from protesters but more unrest against the Canadian investor flared up in the country's south.
Centerra's shares fell 15 percent to C$3.52 on the Toronto Stock Exchange after the miner said it would not be possible to determine the extent of the impact on its production and results until grid power was restored at the mine.
"We have a large stripping campaign going on right now to enable us to access higher-grade ore in the fourth quarter. By ceasing mining operations, that is pushing that mining activity further or delaying access into the zone," John Pearson, Centerra's vice-president for investor relations, told Reuters.
Production in the current quarter will be impacted as well, Pearson said.
Toronto-listed Centerra said on Thursday operations at the flagship mine had been suspended after villagers blocking the only road to the mine cut off power supply.
Centerra said there was an orderly shutdown of the milling facility. The mill has been placed on standby with fluids circulating in order to ensure there is no damage from freezing, the company said.
Centerra's Kumtor mine, nestled in the Tien Shan mountains, is Kyrgyzstan's largest gold deposit and helps keep the Central Asian state's shaky economy afloat.
But Centerra has come under immense local pressure. A state commission has said the firm is paying too little to run Kumtor and accused it of damaging the environment while protesters have raised demands ranging from jobs at Kumtor to building roads.
Police on Friday cleared away demonstrators who had been blocking the road to Kumtor for days and arrested 92 people, Prime Minister Zhantoro Satybaldiyev told a news conference.
A few hours later police used tear gas and stun grenades in clashes with villagers who tried to seize a substation and cut power supplies to the mine, a police spokesman said. Fifty-five people, including policemen, needed medical treatment.
President Almazbek Atambayev imposed the state of emergency and a curfew on Dzhety Ohuz district of the Issyk Kul region until June 10, his office said.
"Those who broke the law must be brought to justice in line with the full severity of the law," it quoted Atambayev as saying during a meeting with security officials.
Hundreds of villagers had blocked the road to Kumtor, in Dzhety Oguz district, on Tuesday afternoon and threatened to move on the mine if the government did not tear up its agreement with Centerra Gold.
The protesters in Issik Kul oblast of Kyrgyzstan took hostage the head of Djeti-Oguz district administration Zhanibek Duyshenbiyev and his deputy on Friday.
According to Duyshenbiyev, the officials were forcedly kept in a car for a while.
The protesters are demanding the release of 92 arrested protesters.
The population of Issik-Kul started protests on May 27.
CENTERRA OPERATIONS TO RESTART
Centerra Gold said on Saturday it had sent fuel to its flagship Kumtor mine in Kyrgyzstan, hoping to restore output cut by protests and power outages as local villagers demand the venture be nationalised.
However, tension remained high in the town of Jalalabad in southern Kyrgyzstan, where a crowd of anti-Centerra protesters seized the regional administration building on Friday, demanding that the government cancels its deal with the Canadian investor.
Power was restored to Kumtor on Saturday, the Kyrgyz government press service quoted Deputy Prime Minister Taiyrbek Sarpashev as telling Rodney Stuparyk, vice president of Kumtor Operating Company (KOC), which runs the mine.
Fuel supplies were sent to the mine on Saturday afternoon, KCO spokesman Sergey Dedukhin said.
"Mining works will resume when it is received. The company will try and do its best to make up for the lost time and achieve planned production levels," he added.
Defying his warnings, a crowd of protesters occupied the regional administration building in the southern town of Jalalabad several hours later. They demanded that Centerra be nationalised and a jailed nationalist parliamentarian be freed, an eyewitness and a police officer told Reuters from the town.
"The President and the Prime Minister have clearly stated in the past that the mine is not going to be nationalized," Pearson said.
The Central Asian state's government said that only a few opposition protesters were in the building and threatened to use force if they did not leave voluntarily.
Local villagers in the north have floated a list of demands to Centerra, varying from building roads and a kindergarten and laying water pipelines to giving them long-term loans, offering them jobs at Kumtor and buying equipment for local hospitals.
The protesters moved on Thursday night to an electricity substation feeding the mine and forced its operators to cut off power. Centerra Gold said it had begun an orderly shutdown of the milling facility using back-up diesel-generated power.
The police action prevented the mine from shutting down.
On Friday evening the protesters again seized the substation and cut off power to Kumtor and local border guard posts.
Centerra Gold alone contributed 12 percent in 2001 to the gross domestic product of Kyrgyzstan.
Kyrgyz nationalist deputies and groups have called for the nationalisation of the mine - the biggest gold venture run by a Western company in Central Asia. Parliament has set a deadline of June 1 for the government to renegotiate or repudiate a 2009 deal struck with Centerra to operate Kumtor.
Prime Minister Satybaldiyev said the government would miss the deadline as it needed more time for talks with Centerra.Güncelleme Tarihi: 01 Haziran 2013, 15:13