Kyrgyzstan adopted gold stocks are still small

Business Materials 20 December 2011 13:44 (UTC +04:00)

Only 15 out of 38 prospective gold deposits in Kyrgyzstan adopted to balance the state commission on stocks, said KyrTAG quoting the distributed message of the Kyrgyzstan Guild of Miners on Tuesday.

"Kyrgyzstan is inferior to all its neighbouring states on the number of explored deposits and mineral resources. There are only 38 prospective fields with reserves of gold ranging from two tons and above.

"They were discovered during the Soviet Union period, but did not represent the industrial value at that time. Only 15 of these deposits is considered by the state commission on stocks and taken to account. Much of the inventory is classified as 'forecasted' and requires a significant investment for detailed exploration.

"In fact only Jerooy Taldybulak Levoberezhny, Andash and the newly equipped Togolok, Unkurtash , and Ishtamberdy Bozumchak are ready to be developed. The other requires detailed prospecting and complete research to ensure the profitability of their development," the statement said.

Experts noted that the effectiveness and extent of geological prospecting and exploration in recent years has decreased. It is necessary to take measures to attract investors in this sector: to return the exclusive right to develop the field and further simplify the issuance of licenses for exploration and search.

A working group of geologists and miners noted the negative consequences of the adoption of amendments to the Law on Subsoil of Kyrgyzstan. One of the key changes in the law is that in the event of discovery of the field, the licensee has no exclusive, but only preferential right to develop this field.

Experts believe that such an amendment would drastically reduce the search and exploration in the country until their complete cessation.

Search and exploration are high-risk business, 95 per cent of which is never returned to investors. The growth of the material and raw material source base of the republic is extremely slow.

"Exploration was carried out using funds from foreign investors after gaining sovereignty, stimulated by the relevant law and inspired by the example of Kumtor. Investments in exploration during this period totalled $250 million.

"Today 84 per cent of licenses issued to the mining industry are in search and exploration. However only the Chaarat gold deposits, Taldybulak-Talas, Shambysay and the re-assessed stocks of Kutesa and Kalesija (rare earth metals, beryllium) were discovered during all these years," the report says.