The Kumtor open pit mine is located about 350 kilometers (220 miles) southeast of the Kyrgyz capital of Bishkek and 80 kilometers south of Lake Issyk-Kul, which is close to the border with China. Kumtor is one of the largest gold mines in Central Asia, and its total reserves are estimated at 195.2 metric tons.

The mine is operated by the Kumtor Operating Co., a joint venture by Centerra Gold, which holds a 67 percent stake, and Kyrgyz state-owned mining conglomerate Kyrgyzaltyn, which holds a 33 percent stake. Kumtor's activity is responsible for about 60 percent of Kyrgyzstan's industrial output, more than half of Kyrgyzstan's export revenue and about 12 percent of the country's gross domestic product. Thus Kumtor's impact on the Kyrgyz economy is substantial.

Opposition lawmakers in the parliament led the recent push for nationalization, citing the mine's purported negative impact on the environment as a reason it should be brought under full state control. However, the underlying goal is simply to increase the revenues that the mine brings in for the government. During the previous nationalization push in 2007, the government eventually dropped the effort after Centerra Gold agreed to boost Bishkek's stake in the mine from 16 percent to its current level of 33 percent.

Raising revenues is also a political concern for the government. Instability caused in part by economic weakness led to a revolution in 2010, and the current government voted into office in November 2011 needs the revenues to keep the country stable.

Lawmakers in parliament dropped the nationalization effort after agreeing to form the commission tasked with revising the terms of Kyrgyzstan's contract with Centerra Gold, which is due to present a new contract to the parliament by October.

If carried out, the nationalization plan would have forced Centerra Gold out of the country, which would damage Kyrgyzstan's economic prospects in several ways. First, Kyrgyzstan depends on Centerra's capital and technical expertise to operate the mine. Second, Centerra Gold could take Bishek to international arbitration court for seizing the mine, which the country could ill afford. 

Nationalizing a gold mine could also ward off other foreign investors, putting further pressure on the country's economic prospects. Kyrgyzstan lacks the significant energy resources possessed by other Central Asian states, and its mountainous geography and scattered population centers do not lend themselves to robust economic development. Having experienced two revolutions in the last seven years, economic weakness is also an indirect security threat for the government. Seeking greater concessions from Centerra Gold is by far the safer option.

This concessions strategy is something that Kyrgyzstan has also tried on the United States and Russia regarding the military bases the countries lease. Bishkek has repeatedly threatened to evict the United States from Manas Air Base and Russia from Kant Air Base if rent payments are not increased. While this strategy has worked in the past, it is unclear how much Kyrgyzstan will demand for the mine. These concessions and Kyrgyzstan's economic weaknesses will ensure that Bishkek will not go as far as pushing Centerra Gold out.

Editor's note: An earlier version of this analysis misstated the name of the Kyrgyz capital, Bishkek.