• KGS/USD = 0.01126 0%
  • KZT/USD = 0.00225 0%
  • TJS/USD = 0.09196 0.77%
  • UZS/USD = 0.00008 0%
  • KGS/USD = 0.01126 0%
  • KZT/USD = 0.00225 0%
  • TJS/USD = 0.09196 0.77%
  • UZS/USD = 0.00008 0%
  • KGS/USD = 0.01126 0%
  • KZT/USD = 0.00225 0%
  • TJS/USD = 0.09196 0.77%
  • UZS/USD = 0.00008 0%
  • KGS/USD = 0.01126 0%
  • KZT/USD = 0.00225 0%
  • TJS/USD = 0.09196 0.77%
  • UZS/USD = 0.00008 0%
  • KGS/USD = 0.01126 0%
  • KZT/USD = 0.00225 0%
  • TJS/USD = 0.09196 0.77%
  • UZS/USD = 0.00008 0%
  • KGS/USD = 0.01126 0%
  • KZT/USD = 0.00225 0%
  • TJS/USD = 0.09196 0.77%
  • UZS/USD = 0.00008 0%
  • KGS/USD = 0.01126 0%
  • KZT/USD = 0.00225 0%
  • TJS/USD = 0.09196 0.77%
  • UZS/USD = 0.00008 0%
  • KGS/USD = 0.01126 0%
  • KZT/USD = 0.00225 0%
  • TJS/USD = 0.09196 0.77%
  • UZS/USD = 0.00008 0%

Viewing results 1 - 6 of 37

Kyrgyzstan’s Kumtor Begins Underground Gold Mining

The Cabinet of Ministers of Kyrgyzstan has said that underground gold mining at Kumtor can provide hundreds of millions of additional dollars to the country's budget. The deputy head of the Kyrgyz Government, Adylbek Kasymaliev, presided over a ceremony marking the beginning of work at the mine. The Kumtor deposit is one of the ten largest gold deposits in the world. The mine is located in the Issyk-Kol region in the permafrost zone at an altitude of 4,000 meters above sea level. Revenues from Kumtor account for roughly one-third of the state budget in Kyrgyzstan, with the mine producing about 17 tons of gold per year. "The feasibility study of the underground gold mining project developed by specialists speaks about its economic efficiency. According to preliminary data, with the help of an underground mining method, it will be possible to get 115 tons of gold. Taking into account the precious metal mined at the [site] by the open-pit method, this is a big step forward," said Almazbek Baryktabasov, President of the Kumtor Gold Company. Mining underground will help the company reach gold of a higher-grade ore, he said, and as a result, the company will be able to increase its tax payments. Until its nationalization in 2021, the Kumtor mine was owned by Canadian company, Centerra Gold. Earlier, the Canadian owners tried to extract gold through shafts. However, gold prices did not render this profitable, as the shaft method is much more expensive than the open-pit mining. Over the past ten years, however, the price of an ounce of gold has risen by more than $700 and is currently trading at just over $2,000. Before Kumtor was expropriated, Centerra Gold spent approximately  $180 million dollars on research related to underground mining. Today, the authorities have allocated an additional mining site next to the one where gold ore is already being extracted. According to some reports, the new site contains a denser concentration of the precious metal per unit of ore. Currently, at Kumtor's open-pit mine, it takes one ton of processed ore and more than 40 tons of extracted waste rock to produce 5-7 grams of gold. Underground mining could double that yield. Furthermore, underground mining is not as environmentally damaging as open-pit mining. For example, one of Kumtor's main environmental concerns is the destruction of glaciers which literally hang over the edge of the open pit.

Kyrgyzstan: Forum helps local suppliers find partners in mining business

BISHKEK (TCA) — The first Forum of suppliers of goods and services for the mining industry of Kyrgyzstan was held in Bishkek on June 27. It was not a traditional meeting when all the invitees are sitting in the hall while speakers perform reports in a planned manner. Establishing B2B contacts During six hours, the ten largest mining companies, including KAZ Minerals Bozymchak, Kumtor Gold Company, Altynken and Highland Exploration, and 28 supplier companies from various sectors of the economy established B2B contacts and concluded preliminary agreements in several halls of Hyatt Regency Bishkek. In front of the hotel, the companies demonstrated modern heavy mining equipment including excavators and bulldozers, while inside the hotel there were representatives of the largest subsoil users and local suppliers. Subsoil users explained the procurement procedures to suppliers and answered their questions. Suppliers presented their products and services at stands and in presentations. Along with suppliers of direct goods and services such as design, exploration, testing, drilling and blasting, the exhibition also included related services — food supply, workwear, lighting equipment and much more that can be purchased in the country. Askar Sydykov, Executive Director of the International Business Council (IBC) based in Bishkek, told how the idea of holding the forum appeared. “Suppliers of goods and services often turned to IBC with a request to acquaint them with purchasers, and not only for the mining industry, but also for other sectors of the economy. We decided to bring together suppliers of goods and services in one place to help them establish contacts for further joint projects,” the IBC head explained. Lack of information The cooperation often fails due to the lack of information. For example, not everyone knows that the country produces materials for mining and recycles industrial waste. Subsoil users do not always have information on where and what purchases can be made in Kyrgyzstan. At the same time, they are ready to buy more from local companies and enterprises. “Recently, the mining industry has been developing rapidly in our country, and the need for services is increasing. We support the initiative to ensure that as many local companies operate in Kyrgyzstan. The more local people work, study and develop, the less problems with local communities will investors face,” said Aigerim Omokoeva, Executive Director of the Aji Service LLC that provides special equipment and other services for the mining industry. The main activity of the company is blasting and sale of explosive materials for industrial explosions. “In terms of safety, we have a great responsibility towards people and comply with all international and local safety and environment standards,” she added. Efficiency of local suppliers could be improved if local companies are given open access to tenders. “Kyrgyzaltyn (Kyrgyz Gold) state enterprise’s information about tenders is the only source for us to participate in tenders. We learn about tenders through our colleagues, geologists, who have been working in the industry for a long time,’” Omokoeva said. How to become a Kumtor supplier Kumtor Gold...

Kyrgyzstan: Subsoil users concerned about possible tax burden increase

BISHKEK (TCA) — The International Business Council based in Bishkek, mining enterprises and associations of the mining industry of Kyrgyzstan appealed to President Sooronbai Jeenbekov with a request to assist in solving problems in the subsoil use sector. The appeal is related to the recent decision of the Security Council on measures in the subsoil use. Continue reading

Kyrgyzstan: Skies over Kumtor gold field darken once more

BISHKEK (TCA) — As the Kyrgyz government again wants to revise its agreement with Canada-based Centerra concerning the Kumtor gold mine, we are republishing this article on the issue, originally published by Eurasianet: Continue reading

Kyrgyzstan: Economy in decline but government optimistic on growth

BISHKEK (TCA) — Many Kyrgyzstanis are not happy with the current economic situation in their country, and the latest statistical data prove that. According to the National Statistical Committee, the country’s GDP lowered 0.2% over the first seven months of 2018. The state budget deficit is growing, as the state spends more than it earns. Continue reading

Kyrgyzstan authorities clash with owners of massive Kumtor Gold Mine

BISHKEK (TCA) — The Kyrgyz government has sent mixed signals that it may once again review its agreements with Canada’s Centerra Gold over Kumtor gold mine — a move that will in no way improve the country’s investment climate. We are republishing this article on the issue, written by George Voloshin, originally published by The Jamestown Foundation’s Eurasia Daily Monitor: In mid-July, Kyrgyzstan’s capital of Bishkek hosted a roundtable dedicated to the future of the Kumtor Gold Mine, one of the largest gold deposits in the world.  According to Kumtor Gold Co., a wholly-owned subsidiary of Canada’s Centerra Gold, which operates the mine, the deposit contributed over 21 percent of Kyrgyzstan’s industrial output and approximately 9.7 percent of its gross domestic product (GDP) last year. The company states that it has channeled almost $3.5 billion to the Kyrgyzstani budget since 1994, including more than $1 billion in various taxes, customs duties and other mandatory charges. Yet, it is widely believed domestically that the local government has been continuously misled by the Canadian investor (Kumtor.kg, July 24; Pikir-klub.kg, July 18). The roundtable took place at the government’s initiative but was not attended by either ministers or members of parliament. Instead, it drew attendance from rank-and-file staffers who promised to report the findings up the chain. The speakers were all supplied by the Pikir (“opinion” in Kyrgyz) expert club known for its critical statements on policy issues. They unanimously emphasized the need for the current administration to extract increased commitments to environmental safety from Centerra Gold. The discussion ended with a resolution explicitly calling for the nationalization of Kumtor Gold’s assets. The resolution further calls for bringing to justice those Kyrgyzstani officials who previously signed allegedly unfair agreements with the Canadian mine operator. According to experts, Kyrgyzstan would have “easily” paid back its external sovereign debt, currently amounting to approximately $4 billion, had it received higher payments from Kumtor operations. This estimate contradicts Centerra Gold’s own calculations (Azattyk.org, Pikir-klub.kg, Khabar.kg, July 18). Last September, the government of Kyrgyzstan and Centerra Gold signed a new agreement ensuring better protection of the environment and higher investments for local development purposes. The foreign investor thereby agreed to raise its environmental fees from $310,000 to $3 million a year. It allocated an additional $50 million to the newly created Nature Development Fund and a further $10 million to the Cancer Research Development Fund. Besides this, Centerra undertook a formal pledge to make annual payments of $6 million to the Kumtor Rehabilitation Fund. In exchange, the Kyrgyzstani authorities agreed to forego costly litigation in local and international courts by sticking to the 2009 agreement, which now governs all work at Kumtor. The then–prime minister, Sapar Isakov, called last year’s accord a “strategic win” for Kyrgyzstan, although it was labeled by some legislators as an “unacceptable” concession and a “sellout” of national interest (Gezitter.org, September 12, 2017; Gov.kz, vb.kg, Kloop.kg, September 11, 2017). Despite reaching the additional accord initially touted as a success, the Kyrgyzstani government has recently...

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