The government of Kyrgyzstan has annulled mineral licences for properties held by London-listed Oxus Gold (OXS-L) and Venture-listed Central Asia Gold (CGA-V), claiming that the companies have not moved fast enough to develop the projects.
Oxus was continuing construction on its Jerooy gold project near Talas in the northwestern part of the country, despite a year-end decree signed by Kyrgyz prime minister Felix Kulov instructing state agencies to review the existing development agreement and, if necessary, find a new developer for the project. The property had been owned by an operating company in which the government had owned 33% and Oxus 67%.
Oxus said it regarded the move as an expropriation, based on an opinion from a Kyrgyz parliamentary committee.
The government also annulled the licence for Central Asia Gold’s Taldy Bulak project, west of Lake Issyk-Kul, after state mining agency Kyrgyzaltyn withdrew from the joint venture there. Kyrgyzaltyn claimed that Central Asia was in default of their November 2003 joint-venture agreement; Central Asia said Kyrgyzaltyn had not taken a variation agreement the partners had entered in October 2004, which changed the development schedule, into account.
The company is seeking meetings with the government.
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