Kyrgyzstan ensures smooth operation of country’s largest gold mine
BISHKEK (TCA) — Kyrgyzstan’s Parliament has approved amendments to the country’s Water Code which allow the development of Davydov and Lysyi glaciers at the country’s largest gold deposit, Kumtor. The amendments are necessary for the State Agency for Environmental Protection and Forestry to permit further work at the deposit. The Government submitted the bill to the Parliament after Kyrgyzstan and Centerra Gold signed a new agreement on compliance with environmental standards in Kumtor’s development. Kumtor, the largest gold mine in Central Asia, is located in Kyrgyzstan’s Tien Shan mountains. Canada-based Centerra owns 100% of the Kumtor mine through its wholly owned subsidiary Kumtor Gold Company. The Kyrgyz Republic holds 26.6% shares in Centerra through the state gold company KyrgyzAltyn. Kyrgyzstan’s Government initiated amendments to the Water Code back in 2015 but under the pressure of society, the bill was withdrawn from Parliament. Civil society and environmentalists believe that the adoption of the document would legitimize the destruction of glaciers. Debates on the problem continue so far, and the public has divided into two camps. Some consider the adoption of the law necessary for the economy of the country, while others advocate the environment protection. Government’s arguments Due to amendments to the Water Code, the Government will be able to raise an additional 12.7 billion Kyrgyz soms ($182 million) for the development of the country's economy, said the then Deputy Prime Minister of Kyrgyzstan Duishenbek Zilaliev last week. In the first nine months of 2017, Kumtor contributed more than 6.8 billion soms in taxes and mandatory payments to the national budget of Kyrgyzstan, and more than $238 million in 2016. Kyrgyzstan received $10 million annually as dividends from its shares in Centerra valued at $415 million, he said. In addition, Kumtor will allocate a one-time $10 million payment for cancer treatment in the country. The company paid $310,000 for environmental damage annually but according to the recent agreement, the payment was increased to $3 million. Summing up all the money coming from Kumtor, 12.7 billion soms will be directed to the development of Kyrgyzstan’s economy. When the document is signed by the President, Centerra will be able to conduct a full-scale development in the areas of the Davydov and Lysyi glaciers. If Kumtor does not work, the glaciers will collapse into the quarry and the Government will have to clear it at its own expense, Zilaliyev explained. According to Chairman of the State Committee for Industry, Energy and Subsoil Use Ulanbek Ryskulov, it is impossible to exclude the excavation of ice during mining operations, because the ice masses were deformed towards the quarry and are dangerous for mining operations. They need to be moved to protect the quarry and to maintain safe working conditions. The Lysyi Glacier has been developed by 10% and it will be developed by 20% by the end of the mine operation, he added. The Davydov Glacier has been worked out at 45-50% (70% after completion). In the future, the Environmental Protection Agency will not allow mining...
