CGAU - Centerra to launch arbitration in Kyrgyzstan takeover of Kumtor mine

Centerra Gold (CGAU) -13.1% pre-market after saying it initiated binding arbitration against the Kyrgyzstan government, after the country's parliament passed a law earlier this month allowing the state to temporarily take control of the Kumtor gold mine if the government deems its activities pose a risk to human safety and the environment.The company also says a court had imposed a $3B fine against Kumtor Gold on the basis of private civil environmental claims, and that its office in Bishkek had been raided.Centerra says the parties have 28 days to agree on an arbitrator; if unsuccessful, Centerra would ask the Permanent Court of Arbitration at The Hague to appoint an arbitrator.Under the agreements, the governing law is the law of the state of New York.Centerra shares began trading on the NYSE just a month ago.

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Centerra to launch arbitration in Kyrgyzstan takeover of Kumtor mine