London-listed gold developer Oxus Resources (OXS-L) has resorted to arbitration under bi-national investment agreements in its dispute with the Kyrgyz government over development of the Jerooy gold deposit.
Although talks between the government and Oxus continue, Oxus issued formal notice that it would bring the dispute to arbitration under the Bilateral Investment Treaty between Britain and Kyrgyzstan. The company’s licence was revoked in late 2005, with the government saying Oxus was dragging its feet on development of a mine at Jerooy. Oxus claims the government was ignoring a variation agreement made in 2004 that extended the schedule for developing the project.
Oxus says that Kyrgyz courts have enjoined the government not to transfer the Jerooy development rights to another party and that the national parliament had resolved that the government should annul an agreement that would have brought in a different partner for Kyrgyzaltyn.
Oxus had held 67% of Jerooy and the government’s gold-mining agency, Kyrgyzaltyn, the other 33%.
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