Kyrgyzstan has acquired full ownership of the Kumtor gold mine, one of the largest gold mines in Central Asia, after it reached an agreement with a Canadian mining company.

Kyrgyzstan's President Sadyr Japarov announced in a televised address on Monday that the country has reached the deal with Canadian mining firm Centerra Gold following a year of legal wrangling.

“Through this agreement, we have been able to ensure a full and irrevocable handover of our greatest national treasure, the Kumtor gold mine, to Kyrgyzstan,” Japarov said.

The Kumtor mine would be fully owned by Kyrgyzstan, according to the president, who also said that "Kumtor Gold Company is 100% owned by our country."

Kyrgyzstan was able to define the full transition period of the mine starting from the date of the introduction of external management in May last year. “Thus, we were able to obligate that all parties officially recognize all revenues from 15 May 2021 as our property.”

Japarov said Centerra is required to pay Kyrgyzstan $11 million in dividends for the first three quarters of last year, adding that the country regained the full control of the Kumtor Reclamation Fund, which means another $53 million will be returned to Kyrgyzstan after previously being held in a trust account with a London bank.

The president called the agreement reached with the Centerra Gold "our common victory."

"Looking ahead to the next 10 years, experts estimate Kumtor mine will produce at least $5 billion dollars from the 160-200 tons of gold expected to be mined," he said, adding that the Kumtor mine is already valued at around $3 billion.

This is the money that will go directly into the national budget, he said.

The Kumtor gold mine, located in the Issyk-Kul region of northwestern Kyrgyzstan, contributes significantly to the country's economy and employs nearly 4,000 people, accounting for more than 12% of the country's gross domestic product./aa