Russian company to search for gold in Uzbekistan

Business Materials 26 December 2017 11:18 (UTC +04:00)

Baku, Azerbaijan, Dec. 26

By Nigar Guliyeva – Trend:

The Russian company "RosGeoPerspectiva" will carry out geological studies to reveal copper and gold in the promising areas of Kazakhtau and Kazakhtau 1 in Navoi region of Uzbekistan, Russian media reported.

The Russian side and the State Committee of Uzbekistan for Geology and Mineral Resources have already prepared a draft agreement on geological exploration and pilot production in these areas. In addition, a new company Mistog was established to be the operator of the project.

Uzbekistan plans to grant the Russian company the right to use these sites for 5 years with a subsequent extension for the period necessary to complete the exploration and production operations.

In addition, the investor can be awarded a list of benefits and preferences, including exemption from payment of all types of taxes and mandatory payments to social funds, as well as from customs payments for five years.

The final version of the agreement, which is currently being developed by the State Committee, between the parties will be approved by a special decree of the Uzbek president.

Earlier, it was reported that Russia’s Tyazhmash JSC will take part in the construction of a copper-concentration complex at the Yoshlik I field in the Tashkent region. In August, Almalyk Mining and Metallurgical Combine launched the development of the Yoshlik I field. According to the state investment program for 2017, the development of the Dalneye field worth about $1.7 billion envisages the production of up to 15 million tons of ore per year. The implementation period is 2017-2028.

The volume of proven and confirmed gold reserves in Uzbekistan is about 2,100 tons. The total reserves are approximately 3,350 tons. Two largest enterprises - Navoi and Almalyk Mining and Metallurgical Combines are engaged in the gold production in Uzbekistan.

In June, the government of Uzbekistan approved a list of twelve gold deposits for their industrial development with participation of foreign investments. This list includes deposits of mainly gold-quartz and gold-sulfide ores in four regions of the country - Tashkent, Samarkand, Navoi regions, as well as the autonomous republic of Karakalpakstan. The total reserves of the proposed deposits (category C2) are more than 14.5 tons of gold.