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Gold is still being dug out of the ground at the Kumtor mine in Central Asia but its operator, Toronto’s Centerra Gold Inc. is trying to resolve uncertainty over the project after agreements with the Kyrgyz government expired last weekend.

"We haven’t heard anything from the government … since the June 1 deadline came and went," John Pearson, Centerra director of investor relations, said yesterday.

Gold production at the mine is continuing, he said. "We’ve got an existing investment agreement in place and we continue to mine gold under … this agreement."

But exploration activity on the project’s Southwest and Sarytor licences was halted by the State Agency on Geology and Mineral Resources Management, he said.

"We negotiated this framework agreement last August which gave the government an increased ownership percentage in Centerra in exchange for a simplified tax regime and other things like an expanded concession area" that included the Southwest and Sarytor licences, Pearson said.

Under the three-way agreement, the portion of Centerra owned by Cameco would fall to 41 per cent, the Kyrgyz holding would grow to 29 per cent and public shareholders would own the other 30 per cent.

Cameco, the world’s largest uranium miner, currently owns 53 per cent of Centerra, the government just a little under 16 per cent and shareholders the rest, he said.

The deal would increase Centerra’s concession in Kyrgyzstan by more than 250 square kilometres.

The deadline for ratification by parliament was extended Feb pay day loans. 15 and to April 30 and again to June 1.

Ratification has been delayed by a dispute and lawsuit involving the vice-speaker of the Kyrgyz parliament who " "brought the suit against the government … in a lower court," said Pearson.

Kyrgyzstan’s supreme court suspended certain agreements and licences, pending a lower-court ruling in that suit "but the lower court has yet to hear the claim."

Is the government not happy with the expired agreements?

"You’d have to ask the government that," said Pearson. "As far as we know, it is supported by the prime minister, the president, the government … Since 1997 we’ve produced more than six million ounces of gold at the site."

In Toronto, thinly traded Centerra shares closed down 55 cents at $8.30.

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