Kumtor Gold Company reports extending the time limit for repayment of the KR budget indebtedness to the Company

published: 09 July 2013

Kumtor Gold Company and the Government of the Kyrgyz Republic have agreed to revise the offset schedule for the advance revenue-based tax payment made by the Company in 2012. The appropriate document was signed by the Company and State Tax Service under the KR Government in June 2013.

As the result of adjustments made to the mine plan due to the accelerated waste and ice movement in the southeast section of the open pit and in response to the KR Government’s request, agreement was reached in 2012 to the effect that the Company should make a US $30 million revenue-based tax payment in advance. The said payment was supposed to be counted as made by installments at the end of 2012 and throughout 2013. By June 2013, US $4 million out of US $30 million has been repaid.
This year, the Government asked the Company again to revise the offset schedule regarding the revenue-based tax payment with due account for the existing budget indebtedness to the Company.

In accordance with the new agreement, the due date for the advance revenue-based tax offset was postponed to September 2013. It is planned that $16 million of the budget indebtedness to the Company will have been repaid towards the end of 2013 while the remaining $10 million will be repaid in 2014.