Centerra Gold Kumtor Mine strike settled

Centerra Gold Inc. (TSX:CG), a Toronto miner with operations in Asia, says unionized employees of its Kumtor Mine in the Kyrgyz Republic have ended their illegal work stoppage and returned to work.

Centerra Gold Inc. (TSX:CG), a Toronto miner with operations in Asia, says unionized employees of its Kumtor Mine in the Kyrgyz Republic have ended their illegal work stoppage and returned to work.

The company said Monday a new contract that expires at the end of 2012 has been ratified by the union and will be formally accepted and finalized over the next few days.

Centerra said that despite the production shutdown, the company reaffirms its prior annual production and cost guidance for the Kumtor mine at 530,000 to 570,000 ounces of gold, with costs ranging from $430 to $460 per ounce.

The gold miner did not provide details of the new contract. The strike had centred on a wage dispute, with the union asking for a 100 per cent wage increase and the company offering 25 per cent.

Centerra operates primarily in Asia, the former Soviet Union and other emerging markets worldwide.