Indian Gold Mining Project in Kyrgyzstan Reaches Production Stage

An Indian-backed gold project has moved into the production stage at the high-altitude Solton-Sary deposit in Kyrgyzstan, nearly five years after its developer signed an agreement with the state-owned Kyrgyzaltyn company. Deccan Gold Mines says it is the first Indian investment in Kyrgyzstan’s gold mining sector to reach this stage. On September 12, a gold processing plant began test operations at the Altyn-Tor section of the Solton-Sary deposit in the Naryn Region. The project is being developed by Avelum Partner, in which India’s Deccan Gold Mines holds a controlling stake, together with Kyrgyzaltyn. The two sides have been working together since December 2021. Under their partnership agreement, Kyrgyzaltyn holds a 35% stake, while Avelum Partner holds 65%. The project involves the comprehensive development of Altyn-Tor, including the processing of accumulated tailings and waste rock. Solton-Sary is located about 355 kilometers from Bishkek at an altitude of 3,500–3,600 meters. Soviet geologists first studied the deposit, and trial production at Altyn-Tor began in 1994. Operations have since been intermittent. Investment in the project reached $34.2 million by the end of August 2026. The foundation stone for the new plant was laid in July 2024. At the time, Kyrgyzaltyn said that once the facility reached its planned operating capacity, it was expected to create at least 400 jobs, more than 95% of them for Kyrgyz citizens. The agreement also stipulates that commercial-grade gold produced at the facility must be transferred to Kyrgyzaltyn and cannot be exported independently by the Indian partner. The structure is significant in a mining sector where foreign ownership has repeatedly become politically contentious. The most prominent example is Kumtor, Kyrgyzstan’s largest gold mine, which the government took under state control from Canada’s Centerra Gold in 2021. A settlement the following year transferred ownership to Kyrgyzaltyn. At Altyn-Tor, by contrast, Kyrgyzaltyn remains a partner in the project while the foreign investor provides most of the investment. Chinese investment is also present at Solton-Sary itself, although its history there has been considerably more complicated. The deposit consists of three main gold-bearing sections – Altyn-Tor, Buchuk, and Ak-Tash. Total gold reserves have been estimated at about 20 metric tons. Buchuk is being developed by the Kyrgyz-Chinese company Zhong Ji Mining. Explored gold reserves at the site are estimated at 12 metric tons, while geologists have indicated a possible additional 22 metric tons of gold resources. The project became the center of a major dispute over foreign mining investment in 2019. In August of that year, hundreds of residents of the Naryn Region gathered near Zhong Ji Mining’s operations. Local residents linked mining activity to livestock deaths and feared environmental contamination. On August 5, the protest escalated into clashes with Chinese workers, and more than 20 people received medical treatment. The authorities suspended operations, while the company removed some of its workers and equipment. When President Sadyr Japarov visited Solton-Sary in 2022, the Chinese project was still not operating. Local residents again raised concerns about the environment and the condition of roads. Japarov said...

Kazakhstan Targets 50% Increase in Refined Copper Output with Balkhash Smelter

Kazakhstan plans to increase refined copper production by around 50% after approving the construction of a new smelter in Balkhash, one of the country’s largest industrial projects in recent years. The government expects the plant to expand exports of products with greater added value and reinforce Kazakhstan’s position among the world’s leading copper producers. The investment agreement was signed between the Ministry of Industry and Construction and Qazaq Smelter LLP and approved by Prime Minister Olzhas Bektenov. The project forms part of Kazakhstan’s strategy to increase domestic processing of mineral resources and reduce exports of raw materials. Private investment is estimated at 750 billion tenge, or approximately $1.6 billion. Construction is scheduled to begin in 2027, with commissioning planned for 2030. The smelter will have an annual production capacity of 300,000 metric tons of cathode copper, 10 metric tons of gold, 300 metric tons of silver, and more than 1.5 million metric tons of sulfuric acid. According to government estimates, the new facility will raise Kazakhstan’s total refined copper output to more than 800,000 metric tons per year. Exports of cathode copper and other processed copper products are expected to increase from 460,000 metric tons to 760,000 metric tons annually. The project will create around 1,200 permanent jobs. Kazakh citizens are expected to account for 90% of the workforce when the plant enters operation, rising to 95% over time. The investor has also committed to financing the education of 50 students each year at educational institutions in Karaganda Region to help train future specialists. Government data show that Kazakhstan’s manufacturing sector expanded by 9.8% during the first half of 2026, while cathode copper production reached 232,000 metric tons. Officials have repeatedly identified deeper processing of mineral resources as one of the country’s principal industrial-policy priorities. Kazakhstan already ranks among the world’s major copper producers. Production is concentrated within several vertically integrated mining groups, led by Kazakhmys, which operates mining and smelting facilities in Zhezkazgan and Balkhash. Other major producers include KAZ Minerals, whose flagship operations are Aktogay and Bozshakol, and Kazzinc, which produces refined copper alongside zinc, lead, and precious metals. The new Balkhash smelter is part of Kazakhstan’s effort to increase domestic processing as global demand for copper rises. Expanding power grids and the growth of electric vehicles are expected to support demand in the coming years. The Times of Central Asia previously reported that Australia’s C29 Metals partnered with Kazakh companies to explore new copper and gold deposits. The partnership is another example of international interest in the country’s mineral resources.