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An image of the Kumtor mine in Kyrgyzstan
Kyrgyzstan’s state security service and prosecutors have started the process to terminate its deals with Canada’s Centerra Gold over its operation of the Kumtor gold mine, the security body said on Wednesday.

Kyrgyzstan’s government in May seized control over Kumtor, the biggest gold mine in the Central Asian nation, a move challenged by Centerra Gold through international arbitration.

The security service has launched a probe over alleged corruption in the initial agreement and its subsequent amendments. It said on Wednesday it has established enough facts to press ahead with the annulment.

Centerra Gold said in a statement this week that “as a result of the seizure of the Kumtor Mine and the continuing actions by the Kyrgyz Republic, the company has recognized a loss on the change of control and included the Kumtor Mine in discontinued operations.”