Tag Archives: metals and mining

Stans Energy files lawsuit against Kyrgyzstan

FEB. 16 2016 (The Conway Bulletin) – Canadian miner Stans Energy had filed a $220m law suit at the International Court of Arbitration for what it said was the illegal confiscation of rights it held to mine the Kutessay-2 rare earth elements (REE) field and Kalesay beryllium field in Kyrgyzstan. The Kyrgyz authorities have previously said that it confiscated Stans Energy’s rights over the fields in 2011 because it had broken its contract to develop the sites.

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(News report from Issue No. 268, published on Feb. 19 2016)

Stock market: Bank of Georgia, Tethys, Centerra

FEB. 5 2016 (The Conway Bulletin) — Bank of Georgia shares were up 6.9% this week, closing at £18.14 on Thursday. The bank has followed a downward trend since the beginning of the year, but news of the merger between its corporate banking and investment management departments lifted its shares.

BGEO Group, the holding that owns Bank of Georgia, said it is confident that the move will boost returns and reduce risk.

Tethys Petroleum shares jumped by 19.7% to 2.25p off the back of stable oil prices, leading an upbeat crowd of oil and gas companies involved in the region. Only Nostrum continued the slump.

Among miners, Centerra Gold posted a significant jump of 7.2% to 6.73 Canadian dollars after the Mongolian parliament unblocked negotiations over ownership and licences linked to one of their gold mines in the north of the country.

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(News report from Issue No. 266, published on Feb. 5 2016)

Stand Energy files claims against Kyrgyzstan

FEB. 2 2016 (The Conway Bulletin) — Canadian mining company Stans Energy said it filed a claim for damages in the UN arbitration court against the Kyrgyz government. The company says Kyrgyzstan wrongfully terminated its licences to operate the Kutessay II and Kalesay mines in 2012. Stans claims to have invested $128m in the gold mines and will also seek a $91m compensation for interests. The UN court will deliberate in mid-March.

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(News report from Issue No. 266, published on Feb. 5 2016)

Kyrgyz gov to sue Centerra

FEB. 3 2016 (The Conway Bulletin) — Kyrgyz PM Temir Sariyev said the government is considering suing Centerra Gold over its plans to issue a fresh batch of shares. According to Mr Sariyev, state owned company Kyrgyzaltyn, which owns a 32.7% stake in Centerra, has signed a contract with a law firm to prepare a case. In 2015, Centerra decided to issue new shares. The Kyrgyz government has complained this would dilute its share.

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(News report from Issue No. 266, published on Feb. 5 2016)

ArcelorMittal cancels second pay rise for Kazakh workers

ALMATY, FEB. 1 2016 (The Conway Bulletin) — ArcelorMittal’s steel factory in Kazakhstan scrapped plans to raise workers’ salaries in June because of worries about continued weak market conditions for its products.

In January, ArcelorMittal increased salaries for its 14,000 workers at its steel plant in Temirtau, central Kazakhstan, by 6.8% and had promised another pay rise of 6.8% six months later, but in a letter to employees Vijay Mahadevan, the factory’s CEO, said that this was not now going to happen.

“Unfortunately, we have not fulfilled our plans for 2015, and therefore will not be able to pay the remainder of the wage increase this year,” he said.

“I know that this news will disappoint you, but no-one would benefit from a salary increase which will only put additional pressure on our company.”

A 50% drop in the value of the tenge and rise in inflation has hit workers’ real wages in Kazakhstan and forced many employers to raise salaries.

ArcelorMittal Temirtau is one of the biggest employers in Kazakhstan. It has had, though, tempestuous relations with its workers over salaries in the past few years and had to make thousands of staff redundant. The factory has added symbolic importance as President Nursultan Nazarbayev worked there before moving into politics.

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(News report from Issue No. 266, published on Feb. 5 2016)

Chaarat finds gold in Kyrgyzstan

FEB. 3 2016 (The Conway Bulletin) — British Virgin Island-registered Chaarat Gold completed a feasibility study for a gold mine it is exploring in north-west Kyrgyzstan. The mine is Chaarat’s only asset. Dekel Golan, Chaarat’s CEO, said in an interview that the study revealed low production costs (around $650/troy ounce, including the government tax), which means the company will go ahead with the project.

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(News report from Issue No. 266, published on Feb. 5 2016)

Kazakh government wins case v Mongolia

FEB. 4 2016 (The Conway Bulletin) — The Kazakh government defeated a law suit filed against it by Erdenet Mining, a Mongolian company, in a London commercial court over the bankruptcy of a mining company in the 1990s. Although Balkhashmys, the mining company, was private, the Mongolian company still said Kazakhstan had responsibility for its losses. The court in London said that it had no jurisdiction over the case and threw out the Mongolian claims.

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(News report from Issue No. 266, published on Feb. 5 2016)

Hexagon Mining to increase its presence in Kazakhstan

JAN. 22 2016 (The Conway Bulletin) — Arizona-based Hexagon Mining wants to increase its presence in Kazakhstan after it signed a deal with local miner KAZ Minerals to develop two open pit copper fields. Hexagon will work with KAZ Minerals at Bozshakol and Aktogay, two of the company’s most promising greenfield sites.

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(News report from Issue No. 265, published on Jan. 29 2016)

Mine worker dies in Kyrgyzstan

JAN. 25 2016 (The Conway Bulletin) – A man working at the Centerra Gold-owned Kumtor gold mine in Kyrgyzstan died in an accident. Neither Centerra Gold nor the Kyrgyz government, which owns a stake in the company, have commented on the accident. The Kumtor gold mine is the single biggest economic asset in Kyrgyzstan and is the focus of an ownership row.

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(News report from Issue No. 265, published on Jan. 29 2016)

Stock market: KAZ Minerals

JAN. 29 2016 (The Conway Bulletin) — In general, it was a positive week for Central Asia and South Caucasus focused companies, mainly because oil prices bounced back from the 12-year-lows touched last week.

After posting positive company results, shares in KAZ Minerals, previ- ously called Kazakhmys, shot up in the London Stock exchange continuing their positive trajectory picked up in mid-January. It finished trading on Jan. 28 at 122.75p – a three month high.

In its annual results KAZ Minerals said it was satisfied with its output despite a drop in copper cathode production. Although it has suffered from a slump in commodities prices, the KAZ Minerals is enjoying the cheap tenge currency. KAZ Minerals is focused on exports, so its revenue base, denominated in dollars, is solid.

A strong KAZ Minerals performance gives Central Asia/South Caucasus a cheerleader in this strife-laden period dominated by low oil prices.

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(News report from Issue No. 265, published on Jan. 29 2016)