The state company "Kyrgyzaltyn" has become the sole founder of the gold mining company "Makmal Gold Company." Kyrgyzstan decided to reclaim it from the Chinese company "Manson Group" due to non-fulfillment of obligations under one of the agreements, Akchabar reports.
LLC "Makmal Gold Company" was a joint Chinese-Kyrgyz enterprise, with a controlling stake owned by the Chinese "Manson Group" (51%) and the remainder owned by "Kyrgyzaltyn." The company was engaged in the development of the "Makmal" deposit and conducted geological exploration at the East Ore Zone and Diorite sites within the Makmal area, as well as at the Kyldoo deposit in the Naryn region of Kyrgyzstan.
In 2019, "Kyrgyzaltyn" and "Makmal Gold Company" signed a land lease agreement with a subsequent purchase for 908.8 million soms, about $11 million. The agreement was later modified, as part of the leased land worth 55.5 million soms was transferred to the local village government. As a result, the value of the leased land decreased to 853.4 million soms.
However, "Makmal Gold Company" breached the payment schedule of the agreement. Consequently, "Kyrgyzaltyn" allocated a reserve of 176.569 million soms in accounting to cover potential losses or liabilities related to "Makmal Gold Company's" debt. Considering the reserve and repayment of the principal debt of 18.8 million soms in 2022, the lease receivables at the end of that year amounted to 653.1 million soms, $7.8 million.
Subsequently, "Kyrgyzaltyn" filed a lawsuit against "Manson Group" requesting the removal of the company from the founders of "Makmal Gold Company." In June 2023, the Oktyabrsky District Court of Bishkek satisfied the claim. In September 2023, the company underwent re-registration.
In November of the same year, "Kyrgyzaltyn," as the sole shareholder, decided to terminate the land lease agreement. As a result of the lease termination, the unpurchased portion of the land was reclassified as investment property worth 821.333 million soms, with subsequent transfer to the charter capital of LLC "Makmal Gold Company."
In response, LLC "Manson Group" filed a cassation appeal, but the Supreme Court of Kyrgyzstan upheld the Oktyabrsky Court's decision.
CentralasianLIGHT.org
July 30, 2024