Newmont subsidiary seized by Uzbek government
Published by MAC on 2006-08-16
Newmont subsidiary seized by Uzbek government
by CBC News
16th August 2006
A subsidiary of Newmont Mining Corp. has been declared bankrupt - in a move that the Denver-based company said is a thinly disguised attempt by the Uzbekistan government to take over a foreign-controlled gold mine.
A court in the Uzbekistan capital of Tashkent declared the subsidiary bankrupt last Thursday, claiming it owed back taxes of $48 million US, a government newspaper said. The Uzbek Anti-Monopoly State Committee has appointed a temporary manager until the creditors' meeting, set for Sept. 19.
The Zarafshan-Newmont joint venture was jointly owned by the Uzbek government and Newmont, one of the biggest gold mining companies in the world.
Newmont said last week that Uzbek authorities were trying to seize the venture.
The officials had opened a criminal probe into its operations and staffers, frozen its bank accounts and blocked shipments from the Muruntau mine, west of Tashkent.
Other companies have complained about the Uzbek government, saying it forced them to leave the former Soviet republic in Central Asia.