LBMA reinstates accreditation of Kyrgyz gold refinery (updated)

Centerra Gold

04/05/2022 17:36

(Adds Kyrgyz government comment)
    LONDON, May 5(Reuters) - The London Bullion Market
Association (LBMA) has reinstated accreditation of a precious
metals refinery in Kyrgyzstan, it said on Wednesday, allowing it
to sell metal in the London market.  
    The LBMA had suspended accreditation of Kyrgyzaltyn JSC in
September, citing the refinery's failure to meet required
standards on responsible sourcing.  urn:newsml:reuters.com:*:nL1N2QJ1JL
    The association on Wednesday said it had closed an
investigation initiated after the refinery failed to deliver an
audit report for 2020. 
    "They gave us everything we needed and answered all our
questions," said LBMA general counsel Sakhila Mirza.
    LBMA accreditation is valuable to gold refiners because
major banks that dominate precious metals trading tend to handle
only metal from those on the association's "good delivery" list.
    "As of Tuesday, 3 May 2022, Kyrgyzaltyn JSC was reinstated
to LBMA's Good Delivery List (GDL)," the LBMA said. 
    "All gold and silver refined during the suspension is
considered to be compliant with GDL rules and, therefore, Good
Delivery." 
    The Kyrgyz government, which owns Kyrgyzaltyn, said it
welcomed and appreciated the LBMA's decision. 
    "We have been able to demonstrate our strong commitment to
the letter and spirit of our commitment to the LBMA," a
government statement quoted Akylbek Japarov, chairman of the
cabinet of ministers, as saying. 
    "We assure that our refinery will continue to fully and
unconditionally comply with all its obligations in the LBMA." 
    Kyrgyzaltyn was embroiled in a dispute last year with
Canadian miner Centerra Gold  CG.TO , the Kumtor gold mine of
which was seized by the Kyrgyz government in May 2021.
 urn:newsml:reuters.com:*:nL2N2W20KV
    Centerra accused state-owned Kyrgyzaltyn, which is
Centerra's largest shareholder, of involvement in the seizure
and said it tried to make fraudulent payments. 
    Kyrgyzaltyn has denied wrongdoing and the Kyrgyz government
accused Centerra of transgressions including environmental
damage and corruption. 
    The LBMA said in June last year that it had begun a review
of Kyrgyzaltyn JSC "in response to issues concerning delivery
and the potential for fraud".
    The dispute over the Kumtor gold mine was settled out of
court in April.  urn:newsml:reuters.com:*:nL2N2W20KV
        
    

 (Reporting by Peter Hobson
Editing by Mark Potter, Chris Reese and David Goodman)
 ((Peter.Hobson@thomsonreuters.com; +44 207 542 0083;))