Centerra Gold Inc. hopes its Mongolian processing operation will be up and running again shortly, but has no commitments from the Mongolian Government in terms of a timeline. “We”re making progress all the time. We see some positive signs coming out of Mongolia, but as far as the timing, it”s difficult to say,”  Jeff Parr, Centerra”s chief financial officer, has said. “We”re hopeful that it”s not going to last much longer.”

The Toronto-based gold miner has been struggling to clear things up with the Government ever since its operating license for the Boroo mine was suspended in June because of issues such as record keeping, allegations of incorrect land use and improper operating procedures.

The mine”s main operating license was reinstated in July, but Centerra has not yet received its final operating permit for Boroo”s heap leach operation, where cyanide is used to extract gold from ore. Parr said the heap leach operation – which will also be used to process ore from the Gatsuurt mine once it is fully operational in the third quarter – is not the Government”s first priority when it comes to mining projects.

“Compared to some of the other projects they”re dealing with, Gatsuurt is not huge, so it”s just a little bit slow getting them focused,” he said. Although Parr wouldn”t give a timeline as to when he expects to have the heap leach operation restarted, the company is assuming that it will be back online by mid-April. Centerra expects to produce 36,000 ounces of gold from the heap leach in 2010.  It is in the process of building a 55-km road between Gatsuurt and Boroo so ore mined from Gatsuurt can be treated at Boroo”s milling facility. Boroo is winding down its production as it reaches the end of its mine life, but its operations will be kept busy with ore from the new mine by the third quarter.