The EBRD has sold its minority stake in Centerra Gold, a Canadian-based gold mining and exploration company operating primarily in Asia, with its main assets in the Kyrgyz Republic (Kumtor mine) and Mongolia (Boroo mine).
The Bank’s ownership in Centerra Gold represented 2.29 million shares, accounting for approximately 1 per cent of the company’s outstanding shares.
The business relationship between the EBRD and the Canadian gold producer’s Kyrgyz/Mongolian operations dates back to May 1995, when the Bank provided a debt and equity financing facility to Kumtor Gold Company, a joint venture between Cameco Corporation of Canada and Kyrgyzaltyn, the Kyrgyz state-owned gold mining company. The EBRD’s debt and equity facility was converted into Centerra Gold shares at its IPO in June 2004, half of which were divested in 2007.
“Through its work with Centerra Gold the EBRD has supported the development of the mining industry in the region and Centerra Gold’s efforts in the Kyrgyz Republic, demonstrating mining's viability in the country to the international industrial community”, said Kevin Bortz, EBRD Director for Natural Resources.
The EBRD remains committed to support the development of the gold sector in Kyrgyzstan and Mongolia by promoting private ownership and raising further health and safety standards in the mining industry.