UPDATE 2-Kyrgyz court fines Centerra Gold unit Kumtor $98 mln

(Adds company response, share price move)
BISHKEK, May 25 (Reuters) - A court in Kyrgyzstan on
Wednesday fined the country's biggest gold miner, Kumtor
Operating Company, a unit of Canada's Centerra Gold Inc CG.TO ,
6.7 billion soms ($98 million) for environmental damage.
Kumtor's lawyers told reporters at the hearing that they
would appeal the ruling.
Kyrgyzstan's environmental inspection authority had said
that Kumtor's placement of waste rock on its waste dumps was
subject to tariffs normally applied to industrial or domestic
waste, Toronto-based Centerra said in a statement.
The Central Asian republic and Centerra have been locked in
a bitter dispute over profit-sharing and Bishkek said last year
it was withdrawing from the negotiations.
Kyrgyzstan's environmental and technical safety authority
has filed several lawsuits against Kumtor for a total of about
$103 million and Wednesday's ruling was the second one this
week, both being in favor of the state.
There are still two outstanding environmental claims,
totaling around $5 million, made by the environmental inspection
unit against Kumtor, Centerra said.
Kumtor also faces a claim for damages of some $220 million
for environmental pollution fees from another Kyrgyz state body,
Centerra said. The next court hearing on this matter is
scheduled for May 30.
"Centerra strongly disputes the allegations made... and
considers the claims to be without merit," the miner said. It
will continue to challenge the claims in court and could also
commence international arbitration, Centerra said.
Kyrgyz prosecutors raided the company's offices last month
to collect documents related to a separate criminal case
alleging financial violations by the firm.
Centerra's shares ended 1.4 percent firmer at C$7.07 on the
Toronto Stock Exchange on Wednesday.