Bankwatch in the media

The European Commission yesterday (25 November) unveiled the mechanism for its much-heralded €315 billion investment plan, revealing how a limited €21 billion of initial public money is intended to lift fifteen times as much in capital.

Central Asia’s top producing gold mine Kumtor is back in the spotlight, after its major shareholder, Canadian company Centerra Gold’s environmental record was questioned by the Kyrgyz public, domestic activists, and international experts. The controversy surrounding Kumtor has translated into a highly politicized backlash in Kyrgyzstan over a lack of transparency and Centerra’s unwillingness to disclose information on the harmful effect of the mining operations on glaciers. In light of the growing public pressure on Centerra Gold in the republic, one of the Kumtor project’s creditors, the European Bank for Reconstruction and Development (EBRD), has come under scrutiny.

Kumtor mine is the largest open pit gold deposit in Central Asia, whose majority shareholder since 2004 has been Centerra Gold, a Canadian mining company. The mine sits at an altitude of 4,000 meters above sea level, in the Tien Shan mountain range and among some of Kyrgyzstan's - and the region's - most important glaciers. These feed into the Naryn (Kyrgyzstan) and Syrdarya (Uzbekistan) rivers. Kumtor's main gold-bearing ore lies under glaciers adjacent to Kyrgyzstan's Sarychat-Ertash state reserve.