Moody's cuts Kyrgyzstan's rating after gold mine nationalisation

Published: 2022-01-25 05:06:55 ET CG.TO

The Bishkek government took over the Kumtor gold mine last May, which had been operated by Canada's Centerra Gold, for allegedly posing danger to human lives or the environment. The company has denied all the allegations and started arbitration against Kyrgyzstan.

Moody's said recent mining sector developments, including the Kumtor takeover, "partly reflect relatively weak institutions and governance and are likely to negatively affect long-term economic growth particularly through the deterrence of foreign investment".

"Lower growth and undermined prospects for economic diversification will in turn negatively affect government revenue," it said in a statement.

Centerra Gold said this month it was in talks with the Kyrgyzstan government for an out-of-court settlement.

(Reporting by Olzhas Auyezov; editing by Jason Neely)