- ALMATY, Kazakhstan: British-based mining company Oxus Gold says that it has effectively ceased operations in Uzbekistan and is now preparing for a legal battle to challenge a government audit it says is being conducted in bad faith.
Oxus representatives said that they were responding to the audit by refusing to continue managing the lucrative Amantaytau Goldfields venture, in which the company holds a 50 percent stake.
The dispute could leave the Uzbekistan’s lucrative gold industry under near-total government control and will further worsen the country’s investment climate.
Oxus says Amantaytau Goldfields, which it controls jointly with the Uzbek government, could be forced into liquidation.
That could potentially lead to a government buyout under unfavorable terms.