On May 16, 2014, a number of Kyrgyz mass media outlets published a statement by Mr. A. Jakypov, the Chairman of Kumtor Gold Company Union, to the effect that mining operations at Kumtor might be suspended and a mass-scale withdrawal of mine employees might ensue. In this regard, the Company deems it necessary to provide the following clarifications.
While implementing the Kumtor Project, Kumtor Gold Company has ever adhered to high environmental, engineering and safety standards. From the outset, the Company has tried to build a constructive relationship with relevant authorities of the Kyrgyz Republic as regards the development and approval procedures for plans and projects critical for the mine continued operation.
It is, in fact, the first time that the Company’s special technical project for 2014 under the Kumtor Project has not been approved as yet in spite of the fact that it was repeatedly submitted to government authorities for consideration and expert discussion. Under existing agreements with the Kyrgyz Republic, the government is required to provide required approvals and permits regarding on-going mining operations. In accordance with regulations of the Kyrgyz Republic and international environmental and safety standards continuation of mining activities requires necessary permits and approvals from relevant government agencies and therefore the absence of such permits and approvals has become urgent.
Management of Kumtor Gold Company will continue to work with relevant government authorities of the Kyrgyz Republic. Recent discussion with government authorities has been positive and we are optimistic that this situation will be resolved in the near future.
At the present time, all facilities at the Kumtor mine are operating according to their normal routine.