BISHKEK -- A court in Kyrgyzstan has canceled a lower court decision to fine Canadian company Centerra Gold 261.7 billion soms ($3.2 billion) for what were described as violations of environmental laws when it ran the Kumtor gold mine.
The Bishkek City Court did not explain its decision when handing it down late on May 24.
In May 2021, the Oktyabr (October) district court in Bishkek found the Canadian gold miner guilty of indulging in the illegal practice of placing waste rock on glaciers.
The court ruling followed the passing of a bill by the Central Asian nation's lawmakers that allowed the federal government to temporarily seize the Kumtor mine.
Last month, Kyrgyzstan took over the mine after President Sadyr Japarov's government reached an out-of-court settlement with Centerra Gold.
On April 4, Centerra made the agreement public, showing it received all of its common shares held by the state-owned company Kyrgyzaltyn, while Kyrgyzaltyn got a 100 percent stake in the company’s two Kyrgyz subsidiaries, Kumtor Gold Company CJSC and Kumtor Operating Company.
Kumtor had been the target of financial and environmental disagreements for years before turning into the subject of a control battle between the Kyrgyz state and Centerra Gold.
Japarov's government insisted that Centerra's operations endangered human lives and the environment, which the company denied.
In May 2021, the Canadian firm said it had "initiated binding arbitration to enforce its rights under long-standing investment agreements with the government."
Many Kyrgyz lawmakers have expressed concern about an alleged lack of transparency at Kumtor since the Kyrgyz government took control of the gold mine.