October 21, 2010 / 10:54 AM / 8 years ago

KazakhGold must end rows before Polyus deal - govt

* KazakhGold former and current owners in legal conflicts

* Government urges an end to rows to decide on Polyus deal

ASTANA, Oct 21 (Reuters) - Kazakhstan said on Thursday it wanted an end to a row between current and former owners of KazakhGold Group KZGq.L before deciding on whether to approve the sale of KazakhGold shares to Russia’s Polyus Gold (PLZL.MM).

In July, Kazakhstan annulled the sale of KazakhGold shares to Polyus, controlled by Russian billionaires Mikhail Prokhorov and Suleiman Kerimov, and banned a supplementary share issue, citing “violations of the law on mineral resources during the purchase of the stake”. [ID:nLDE66BOAX]

The reverse takeover deal — had it taken place — would have created a group that could rank among the largest pure gold miners on the London Stock Exchange.

KazakhGold’s current and former owners are embroiled in legal conflicts over the fate of the loss-making company. [ID:nLDE6720X9]

Asked when the government could approve the deal between KazakhGold and Polyus, Kazakh Deputy Industry Minister Albert Rau said: “We have not received a new request (to approve the deal), we have put it on hold.

“Once the consultations have taken place and they (deal participants) have reached agreement, there will be a new request ... There has been no such request,” he said. “We are waiting.”

KazakhGold said last month that actions brought by Kazakhstan’s government, including a freeze on some bank accounts, had “cast significant doubt” over its ability to continue as a going concern. [ID;nLDE68K0CS] (Reporting by Raushan Nurshayeva; Writing by Dmitry Solovyov; editing by Keiron Henderson)

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