Oxus Gold seeks arbitration order to protect Kyrgyz investments

AFX News

Oxus Gold seeks arbitration order to protect Kyrgyz investments

11 September 2006

LONDON (AFX) - Mining company Oxus Gold PLC said it is seeking an arbitration order to protect its investments in Kyrgyzstan, following the government-sponsored seizure of premises owned by Talas Gold Mining Co, Oxus’ joint venture company at Jerooy. Oxus said that representatives of Jerooyaltyn, a recently created joint venture between Kyrgyzaltyn and Global G.o.l.d, and local police forcibly took possession of the building on Thursday in direct contravention of the UK-Kyrgyz Bilateral Investment Treaty and Kyrgyz law.

Oxus has submitted an urgent request to the UNICTRAL arbitration tribunal requesting an immediate order to force the Kyrgyz government to provide full protection and security for the plant and associated buildings and equipment, and to allow Oxus unrestricted access and possession of the plant and buildings.

CEO Bill Trew said: ’The plant and associated buildings at Jerooy are all owned by companies in the Oxus Group and are on land to which Talas Gold Mining Co, our joint-venture company, has legal possession. This land is also outside the area of land allocated to Jerooyaltyn by the recent, and wholly unlawful, license dated 23 May 2006.’