Bolturuk had been on Centerra's board as nominee of 26% shareholder, state-owned Kyrgyzaltyn JSC.

Centerra said on Monday it had lost control of the mine, a day after initiating arbitration proceedings following a breakdown in relations in the Central Asian nation.

MP Akylbek Japarov, who chaired the State Commission set up to look into Kumtor, said the government had been forced to take action after its investigation, into concerns about Kumtor's safety record, waste management and other environmental practices, found "new issues that require immediate resolution".

Kumtor suppliers had been instructed to suspend deliveries of essential materials, plus critical sensors to monitor the mine and nearby glacier movement had been externally disabled creating "significant danger to the health and safety of Kumtor employees", Japarov said.

"We were disappointed to learn of Centerra's abdication of its fundamental duties of care related to operation of Kumtor," he said, claiming requests for action were not answered and that management had left the country some time ago.

"When Centerra declined to respond to our request to return the mine to normal and safe operation, we were forced to take these steps in order to protect the workers and the continuity of Kumtor, which is of strategic importance to the Kyrgyz Republic."

Centerra has said it did not disable key safety monitoring and operational systems, which were functioning properly shortly before the government took control, however it had blocked access to the company's global IT systems.

Centerra and Kyrgyz have what's been described as a putrid legacy.

The company was fined US$3 billion earlier this month for environmental damages, for its past practice of storing waste rock on glaciers, but it said its 2019 strategic agreement with the government had released it from all outstanding claims at the time.

Kumtor had been forecast to produce about 500,000 ounces of gold this year and had contributed about 9.8% of the country's GDP in 2019.

Canadian and UK authorities have voiced concerns about recent developments in Kyrgyz and warned of potential impact to foreign investment.

"Canada is also disappointed that this dispute between foreign investors and the Government of the Kyrgyz Republic was not allowed to be resolved transparently by the parties working together," senior ministers said this week.

However Japarov made the following comment: "We were surprised that Centerra has taken the drastic step of initiating an arbitration process, rather than responding to our letter and engaging constructively to resolve our issues in a way that can benefit all parties.

"We look forward to reviewing the arbitration filing to understand what they consider to be the basis for initiating this process," he said.

Shares in Centerra (TSX: CG), which has smaller mines in Canada and Turkey, are trading near a one-year low at C$9.28, valuing it at $2.7 billion (US$2.3 billion).