Kentor Gold’s (ASX: KGL) Andash Project is back on the agenda in Kyrgyzstan, with the country’s government seeking to change a Parliamentary decree opposing development of the project,
The Kyrgyz Government has written a letter calling for the removal of the requirement to revoke permits and cancel land use permits.
In the letter, the government detail on the benefits that the project and the company can provide to the local community.
Under the proposed revision, activity at the Andash project would remain suspended pending the completion of an environmental review and the resolution of the issue with the local community.
However, the letter noted that the project had met environmental requirements.
Kentor managing director Simon Milroy said:
“This is undoubtedly a move in the right direction and although the ongoing delays are disappointing, an independent environmental audit will serve to advance negotiations with the local community.
“We have no doubt that the environmental protection measures forming an integral part of our mine development and operation will be favourably endorsed by any reputable environmental auditors.
“Our social package and our development programme have been welcomed by the Government and Members of Parliament. Once the issue of environmental risk has been put aside, any residual anxiety in the local community should be resolved.”
Consideration of the government’s proposal is on the agenda for the next meeting of the Parliamentary Committee, scheduled for April 24, 2012.
Pro-development initiatives push
The Parliamentary Committee on Economic Development has called for the Kyrgyz Government to take comprehensive measures for the development of a number of deposits in the country, including Andash.
In addition, the committee has put a proposal to Parliament for legislation that would strengthen the measures taken against people or groups who illegally interfere with the activities of companies carrying out mining and geological work in licensed areas.
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