Centerra says Kyrgyz mine strike yet to hit output

Tue Feb 14, 2012 9:25am EST
 

By Alfred Kueppers

MOSCOW (Reuters) - Toronto-listed Centerra Gold (CG.TO: Quote) said on Tuesday the ongoing strike at its Kumtor mine in Kyrgyzstan, the country's largest, had yet to impact output as the company is processing accumulated stockpiles.

"We are currently running stockpile material through the mill," Centerra Vice-President Ian Atkinson said at the Adam Smith CIS Precious Metals Summit in Moscow.

Centerra announced on February 6 that production at the mine had been suspended after unionized employees launched a strike over salary deductions for payments to the Kyrgyzstan's social fund.

Atkinson said talks with the union were continuing, but that it was unclear when the dispute might be resolved.

"There have been negotiations going on between ourselves and the union, plus of course the government is involved because we are a fairly significant producer, and a fairly significant contributor in terms of the GDP," he said.

Kumtor contributed 11.7 percent of Kyrgyzstan's 2011 gross domestic product and 26.1 percent of its industrial output. It produced 7.8 million ounces, or 243 tonnes, from its launch in May 1997 to the end of 2010.

The mine also accounted for 91 percent of Centerra's 2011 output of 642,380 ounces.

Atkinson, Centerra's vice-president for geo-exploration, also said it was unclear when the company would run out of unprocessed ore at Kumtor.   Continued...