Underground Gold Mining Officially Launched at Kumtor
Kyrgyz President Sadyr Japarov has inaugurated underground mining operations at the high-altitude Kumtor gold mine during a working visit to the Issyk-Kul region. According to Japarov, underground development at Kumtor should have started two decades ago. However, the mine’s former operator, Canadian company Centerra Gold, opted instead for open-pit mining, which was less costly but had serious environmental consequences. He said the dumping of waste rock onto the Davydov and Lysyi glaciers resulted in their degradation. “The launch of underground gold mining at Kumtor is a crucial step toward environmental protection and glacier preservation,” Japarov stated. He reported that approximately 1,600 meters of tunnels have already been excavated, and ore with a gold content exceeding five grams per ton is ready for extraction. The underground operation is projected to continue for 17 years, with proven reserves estimated at 147 tons of gold. While Centerra Gold had previously explored underground mining, low global gold prices over a decade ago rendered the project financially unviable. The open-pit method yielded between five and seven grams of gold per ton of ore, then considered the threshold for profitability. As gold content declined over time, the possibility of mine closure loomed. That outlook changed with rising gold prices. Following the nationalization of Kumtor in 2021, the mine’s profitability increased substantially. According to Japarov, since May 2021 the mine has produced 54 tons of gold, generating $3.5 billion in revenue. Of that, $891 million was paid into the state budget through taxes and other contributions. By contrast, the president noted, Kyrgyzstan received just $100 million during the 28 years the mine was under foreign ownership. Speaking to The Times of Central Asia, veteran Kyrgyz geologist Rozalia Djenchuraeva suggested Kumtor’s reserves may be even larger. “Even on Soviet maps, one can see that there is a lot of gold in this area. Gold-bearing veins run under the glaciers from the Kyrgyz-Chinese border through Kumtor and extend westward for many kilometers,” she said. Djenchuraeva added that with modern technologies, especially underground extraction, it is possible to mine gold efficiently while adhering to environmental standards.
