Gold Mining - The Times Of Central Asia

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Gold Mining

Gold Mining in Afghanistan Raises Security Concerns for Central Asia

Large-scale gold mining in northern Afghanistan is increasingly raising tensions and potential security risks for Central Asia, particularly along the Afghan-Tajik border, according to a report by ExpressAsia. The outlet reports that intensive extraction activities are continuing in border areas adjacent to Tajikistan, where clashes and exchanges of fire have periodically occurred between Tajik border guards and individuals described as illegal miners or smugglers attempting to cross the frontier. Over the past two years, mining operations have expanded significantly, with thousands of units of heavy equipment, including excavators and trucks, reportedly transported to Afghanistan’s Takhar and Badakhshan provinces. Local residents have referred to the rapid industrial expansion as a “gold apocalypse.” Mining is concentrated in the Chah Ab district, as well as the Shahri Buzurg and Raghistan areas, which border Tajikistan’s Khatlon region. The report states that around five Chinese companies and two Turkish firms are operating in the area, along with approximately 30 enterprises linked to Haji Bashir Noorzai, whom analysts widely describe as a major figure in Afghanistan’s narcotics trade, in addition to numerous smaller operators. Badakhshan province is considered one of Afghanistan’s most resource-rich regions. In addition to gold, deposits of rubies, lapis lazuli, platinum, and other valuable minerals are being actively extracted. Official figures cited in the report indicate that gold mining generated approximately $900 million in government revenue in 2025. At the same time, experts estimate that gold worth roughly $60 million is extracted daily in border areas alone. Despite the scale of the operations, analysts cited by ExpressAsia say regulatory oversight remains weak and revenue distribution lacks transparency. A significant share of profits is believed to flow to intermediaries and armed groups, while local communities reportedly receive limited economic benefit. Environmental concerns are also mounting. Ecologists warn that intensive mining has already degraded agricultural land, with some fertile areas reportedly turning into sandy terrain, potentially creating long-term ecological challenges for the region. Additional tensions stem from unresolved border management issues along the Panj River, which forms the natural boundary between Afghanistan and Tajikistan under agreements reached in the 1970s. As the river’s course gradually shifts, disputed islands have emerged, increasing the risk of unintentional crossings by miners and triggering repeated protests from the Tajik side. According to ExpressAsia, Tajik authorities have begun reinforcing riverbanks, a move that could further alter water flow and complicate territorial arrangements as mining activity continues to expand.

Gold

Canadian Silvercorp to Develop Major Gold Deposits in Kyrgyzstan

A Canadian mining company is set to develop two of the largest undeveloped gold deposits in western Kyrgyzstan’s Tien Shan gold belt. Silvercorp Metals Inc., a diversified producer of silver, gold, lead, and zinc, announced it has signed a Share Purchase Agreement with Chaarat Gold Holdings Limited, along with a Cooperation Agreement with the National Investment Agency under the President of the Kyrgyz Republic. Under the agreements, Silvercorp will acquire a 70% stake in Chaarat ZAAV CJSC for $162 million. Chaarat ZAAV holds the mining license for the fully permitted Tulkubash and Kyzyltash gold deposits, covering approximately 7 square kilometers, as well as exploration licenses spanning an additional 27.42 square kilometers, which include the Karator and Ishakuld gold zones. Silvercorp has also signed a Share Purchase and Shareholders Agreement with Kyrgyzaltyn, the state-owned gold company. Upon completion, ZAAV will become a joint venture between Silvercorp and Kyrgyzaltyn, with the Canadian firm maintaining a 70% stake and serving as the operator. As part of the deal, the Kyrgyz government will waive its pre-emptive rights and extend the mining license through June 25, 2062, enhancing long-term investment stability. Located about 490 kilometers southwest of Bishkek, the Tulkubash and Kyzyltash projects will be developed in two phases. Phase One (2026-2028) will focus on the Tulkubash deposit. Silvercorp plans to invest around $150 million to construct an open-pit mine with a processing capacity of 4 million tons of ore annually. Commercial production is expected between 2027 and 2028, with annual output estimated at 110,000 ounces of gold over an initial mine life of three to four years. If the Karator exploration license is converted to a mining license in 2026, this phase could be extended by at least two more years. Phase Two (2028-2031) will develop the Kyzyltash sulfide deposit. This stage is expected to require about $400 million in investment and will include both open-pit and underground operations with a capacity of 3-4 million tons per year. Once fully operational from 2031, Kyzyltash is projected to produce between 190,000 and 230,000 ounces of gold annually for more than 18 years. The antimony-gold mineralization at the site was first discovered by Soviet geologists in the 1970s. Since 2002, Chaarat Gold has invested approximately $174 million in exploration, technical studies, and infrastructure, including roads, camps, and support facilities. Silvercorp becomes the second Canadian mining firm to operate in Kyrgyzstan, following Centerra Gold’s development of the Kumtor mine in the Issyk-Kul region. Kumtor was nationalized in 2021, and in August 2022, Kumtor Gold Company was designated a 100% state-owned enterprise. At a ceremony marking the launch of underground mining at Kumtor in August 2025, President Sadyr Japarov stated that Kyrgyzstan had received only $100 million in dividends during 28 years of foreign management, compared to $441 million paid to the state in the three years following nationalization. The Silvercorp transaction marks one of the largest foreign mining investments in Kyrgyzstan since the Kumtor nationalization and is seen as a key test of the country’s ability to...

Tajik-Afghan Border

Deadly Clashes and Gold Mines Fuel Tensions on the Tajik-Afghan Border

Along a short strip of the Tajik-Afghan border, there has been a lot of activity in recent months, including the most serious incidents of cross-border violence in decades. Most of this activity has involved Tajikistan’s Shamsiddin Shohin district, a sparsely inhabited area where the population ekes out a living farming and herding in the foothills of the Pamir Mountains. Why the situation changed so suddenly is not entirely clear, but it is clear that the district is now the hot spot along the Tajik-Afghan frontier. A Dubious Post-Independence Reputation The Shamsiddin Shohin district is in Tajikistan’s southwestern Khatlon region. The district is located near the place where Afghan territory starts to make its northern-most protrusion. The elevation across most of the district is between 1,500-2,000 meters. The district is about 2,300 square kilometers and has a population of some 60,000. Shuroobad, population roughly 11,000, is the district capital, and the entire district was once called Shuroobad. It was renamed Shamsiddin Shohin in 2016 to honor the Tajik poet and satirist of the late 19th century, who was born in the area. Tajikistan and Afghanistan are divided by the Pyanj River, which further downstream merges with other rivers to become the Amu Darya, known to the Greeks as the Oxus, one of Central Asia’s two great rivers. [caption id="attachment_41640" align="aligncenter" width="2560"] The road to Shuroobad; image: TCA, Stephen M. Bland[/caption] The Tajik-Afghan frontier is about 1,360 kilometers. Some 70 kilometers is the southern border of the Shamsiddin Shohin district, but it is the first area, traveling downstream, where the current of the Pyanj River slows significantly. In the first years after the Bolshevik Revolution broke out, many Tajiks fled through what is now the Shamsiddin Shohin district into Afghanistan. Some seventy years later, thousands of Tajiks again fled through the district into Afghanistan when the newly independent state of Tajikistan was engulfed by civil war. The United Tajik Opposition (UTO), the group fighting against the Tajik government during the 1992-1997 civil war, made frequent use of the Shamsiddin Shohin area to bring weapons from Afghanistan. UTO fighters had safe havens in Afghanistan, and they often made their way through this district, retreating south of the border and returning via the district once they were rested and resupplied. There are only a few roads in the Shamsiddin Shohi district. The European Union funded the construction of the Friendship Bridge, which was completed in 2017, and connects the district to Afghanistan. It has often been closed by the Tajik authorities due to security concerns emanating from the Afghan side of the border. Anyone crossing illegally from Afghanistan into the Shamsiddin Shohin district could easily hide in the rugged hills and abundance of caves in the area, making it ideal for smugglers and other intruders. Aside from a few small villages along the banks, there are no settlements for 20 to 30 kilometers north of the river. Border posts were built during the time Tajikistan was a Soviet republic. Russian border guards remained in...

Gold Mining

Kyrgyzstan Advances Underground Project at Kumtor Mine

The state-owned Kumtor Gold Company, Kyrgyzstan's largest gold mining asset, has announced the high efficiency of its new underground mining operations. According to the company, up to 5 grams of gold can be extracted from each ton of ore mined using the underground method. Experts believe this yield is sufficient to ensure the long-term viability of the deposit. Although underground mining was officially launched in August 2025, actual excavation began in February. In a response to The Times of Central Asia, the company reported that geological reserves in the underground zones of Kumtor are estimated at 147 tons of gold, enabling the mine to remain operational for at least another 17 years. “Two tunnels are currently being developed. Poor ore is being mined at the moment, and the system is reaching its design capacity. Full-scale production will be achieved in the coming years,” the company stated. To date, over 1.5 kilometers of underground tunnels have been excavated at Kumtor. Operations continue around the clock, with special equipment transporting ore out of the mine every ten minutes. To maintain a safe working environment in the high-altitude, cold conditions, warm air is pumped into the tunnels to ensure worker comfort and safety. Kumtor was nationalized in 2022 after nearly 30 years of operation by the Canadian company Centerra Gold. The previous operator had planned to complete mining operations in 2024 and begin land reclamation. While underground mining was explored in 2015, it was deemed unprofitable at the time, in part due to low global gold prices. Today, gold is trading at approximately $4,280 per ounce, around $1,000 more than five years ago. This price increase has significantly improved the profitability of underground extraction, making the project economically viable.

Gold Mining

Indian Gold Miners Enter Kyrgyz Market for the First Time

Indian mining firm Deccan Gold Mines has launched operations at the Altyn Tor gold deposit in Kyrgyzstan’s Naryn region, marking the first overseas venture by an Indian gold mining company, according to Indian media reports. The project is being developed through Deccan's local subsidiary, Avelum Partners LLC, which holds a 60% stake in the mine. Production of doré bars is scheduled to begin in October 2025. Geological assessments estimate the Altyn Tor deposit contains approximately 4.6 million tons of gold-bearing ore with an average grade of 1.2 grams per ton, translating to roughly 60 tons of total gold reserves. Hanuma Prasad Modali, CEO of Deccan Gold Mines, said preparations are progressing on schedule. “Eleven conveyor systems have been installed at the site, and the crushing complex has been tested. In early September, the ball mill, one of the key components of the processing plant, will go online, enabling us to reach design capacity as planned,” Modali stated. The company has positioned the project as a model of responsible mining, aiming to strengthen bilateral ties between India and Kyrgyzstan. Despite challenging climatic conditions at the site’s 3,300-meter elevation, year-round production is planned. Altyn Tor forms part of the larger Solton-Sary gold deposit, originally discovered by Soviet geologists in the 1940s. Mining activity at the site was active through the 1990s and early 2000s but later ceased due to insufficient investment. Deccan Gold Mines is also evaluating the potential for processing materials in the tailings pond, where residual gold remains. The company remains the only publicly listed gold mining firm on the Indian stock exchange. News of its overseas expansion triggered a surge in share prices. Earlier, Kyrgyzaltyn, the state-owned holding company, confirmed that production at the site was expected to commence in the second half of 2024.

Tajik-Afghan Border

Gold and Gunfire: Tajik-Taliban Tensions Flare on the Border

Tajik border guards and Taliban fighters have exchanged fire in an area along the Tajik-Afghan border. The incident happened on August 24 and is connected to a Chinese gold mining operation on the Afghan side of the border. The hostilities ended after a rare meeting between local Tajik and Taliban officials, though each side accused the other of harboring enemies. Gold Mining The Tajik authorities have been watching Afghanistan’s Dovang district in Afghanistan’s Badakhshan Province since the start of a gold mining operation there three years ago. Residents of Tajikistan’s Shamsiddin Shohin district, across the Pyanj River from Dovang, reported rising water levels in their area. Sodikjon Rahmonzoda, the head of the district branch of Tajikistan’s Ministry for Emergency Situations, stated that “On the opposite bank of the river, in Afghanistan, industrial gold mining started…. They built infrastructure (including) dams that direct water to our bank.” The Tajik authorities have been reinforcing the bank on the Tajik side of the river to prevent nearby villages from flooding. It is unclear if the two sides were previously in contact about the problems the diversion of water in the river was causing in Tajikistan. The other four Central Asian governments have all established a dialogue with the Taliban since they returned to power in August 2021. Kazakh, Kyrgyz, Turkmen, and Uzbek officials have visited Afghanistan, and Taliban representatives have visited Kazakhstan, Turkmenistan, and Uzbekistan (but so far, not Kyrgyzstan). The Tajik government has kept its contact with the Afghan militant group to a minimum, though several border crossing points are working again, and some bazaars on the Tajik side of the frontier have reopened to Afghan customers. Rising Tensions In May, Tajik authorities detained a group of Chinese and Afghans who drove across the river on excavators from the mining site in Dovang into Tajikistan. According to the Tajik authorities, the Chinese and Afghans were seeking to launder money in Tajikistan. On August 24, a group of Taliban arrived at the border area in Dovang. It is not clear what sparked the shooting, but Tajik border guards and Taliban fighters exchanged fire using heavy weapons. One Taliban fighter was reportedly killed, and four others were wounded. There were no reports of casualties among the Tajik border guards. Neither the Tajik government nor Taliban officials have commented on the clash. A Rare Meeting Following the shooting, the commander of the Tajik border guard unit in the Shamsiddin Shohin district led a group of soldiers across the border to Dovang to meet with the head of mining operations and other officials in Badakhshan Province. The two sides discussed the gold mining operation on the Afghan side of the border, but the conversation degenerated into accusations, with each side complaining that the other was sheltering and training their enemies. Both sides are correct. The Tajik government allows members of the National Resistance Front (NRF), including its leader Ahmad Masoud, to travel to and often stay in Tajikistan. The NRF is a group of mainly ethnic...