The Mineral Industry of Kyrgyzstan in 2015
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2015 Minerals Yearbook KYRGYZSTAN [ADVANCE RELEASE] U.S. Department of the Interior August 2019 U.S. Geological Survey The Mineral Industry of Kyrgyzstan By Karine M. Renaud Kyrgyzstan is a landlocked mountainous country with limited On April 23, 2014, the Parliament passed the “Glacier energy and transportation infrastructure. In 2014, gold remained Law,” which prohibits activities that cause damage to glaciers. the most valuable mineral mined in Kyrgyzstan. Other mineral Under the law, if glaciers are damaged, the companies who commodities produced in the country were clay, coal, fluorspar, are responsible are required to pay compensation at a rate gypsum, lime, mercury, natural gas, crude petroleum, sand and determined by the Government. Centerra Gold Inc. (Centerra) gravel, and silver (table 1; AZoMining, 2013; Gazprom PJSC, of Canada (the operator of the Kumtor Mine) could be affected 2015; Reichl and others, 2016). by the law because the Kumtor Mine bisects a glacier. The law remained to be signed by the Government before it takes effect, Minerals in the National Economy and no signing date had yet been specified (Lazenby, 2014; Marketwired, 2015). Kyrgyzstan’s real gross domestic product (GDP) increased by In 2015, the Russian Government approved a bill to create the 3.5% in 2015 compared with an increase of 4.0% (revised) in $1 billion Russian-Kyrgyz Development Fund. The Russian- 2014. The nominal GDP was $5.58 billion1 in 2015. Industrial Kyrgyz Development Fund is a lending program geared toward output decreased by 1.4% in 2015 compared with an increase the development of infrastructure, small- and medium-size of 5.7% in 2014, and it accounted for 15% of the GDP. Mineral businesses (including manufacturing, metallurgical, and mining industry output decreased by 1% in 2015 compared with a industries), trade, and transportation (24.kg, 2015; Abbasova, decrease of 4.4% (revised) in 2014. Construction increased by 2015; Moscow Times, The, 2015). 13.9% in 2015 compared with an increase of 27.1% in 2014. The State Agency for Geology and Mineral Resources Total investment [of which domestic investment accounted of the Kyrgyz Republic, in cooperation with the WYG for 37.4% and foreign direct investment (FDI) accounted for Consulting Group and with support from the European Bank 50.1%] increased by 22% to $1.2 billion; of this amount, 22% for Reconstruction and Development, developed in 2015 a Joint was invested in mining and 15% was invested in manufacturing Ore Reserves Committee (JORC) code project for Kyrgyzstan. (National Statistical Committee of the Kyrgyz Republic, 2015a, Kyrgyzstan planned to switch from the Soviet system for p. 73–74; 2015b, p. 82, 86, 90, 103; Asian Development Bank, classification of reserves to the JORC system. In 2015, the 2016, p. 106). State Agency for Geology and Mineral Resources issued 224 The total value of exports was $1.30 billion compared with exploration and development licenses for deposits of gold, $1.46 billion in 2014, and that of imports was $3.68 billion copper-gold-silver, and copper-gold-antimony (Mineral.ru, compared with $5.07 billion (revised) in 2014. In 2015, the 2015a; MinerJob.ru, 2015b). value of gold exports was $623.8 million, which accounted for 48% of the total export value; coal, $5.3 million; and Production silver, $2.8 million. In 2015, the major export partners were Switzerland (which received 42% of Kyrgyzstan’s exports), In 2015, production of construction granite and sandstone Kazakhstan (58%), and Russia (38%). In 2015, the value of increased by 109%; construction marble and limestone, and coal imports was $36.3 million; fertilizer and natural gas, petroleum, by 30% each; clays (kaolin), by 19%; sand and $36.1 million each; and cement (portland), $3.5 million. gravel, by 14%; and coal, by 3%. Production of bituminous coal The country’s major import partners were China (which decreased by 27%; cement, by 14%; sand (other), by 12%; gold, supplied 25% of Kyrgyzstan’s imports), Turkey (4%), and by 6%; and mercury, by 5%. Data on mineral production are the United States (3%) (National Statistical Committee of the in table 1. Kyrgyz Republic, 2015b, p. 135–136, 138,182). Structure of the Mineral Industry Government Policies and Programs As of 2015, the country had 562 mining enterprises, of Kyrgyzstan is a founding member of Commonwealth of which 8 were owned by the Government, 1 was owned by a Independent States. In August, Kyrgyzstan joined the Eurasian municipality, and 553 were owned privately. Table 2 is a list of Economic Union (EAEU). Joining the EAEU opened up a free the major mineral industry facilities, their locations, and their trade movement between EAEU members and encouraged annual capacities. new investments in the development of infrastructure projects, including those in the energy and transportation sectors Commodity Review (Ereport.ru, 2014; Eurasian Economic Commission, 2015; Metals Commonwealth of Independent States, 2016). Antimony.—Kyrgyzstan did not report antimony production 1Where necessary, values have been converted from Kyrgyzstani soms (KGS) in 2015. The Kadamzhay mining and metallurgical complex, to U.S. dollars (US$) at an annual average exchange rate of KGS75.87=US$1.00 which was the sole antimony producer in Batkenskaya Province, for 2015 and KGS58.86=US$1.00 for 2014. KYRGYZSTAN—2015 [ADVANCE RELEASE] 24.1 remained closed until mid-2014 and, in the second half of at the Makmal and the Tereksai deposits (Mineral.ru, 2015b; the year, did not operate at full capacity owing to the lack of Prime Zoloto, 2015; Alymbayev, 2016). raw materials. In 2015, the investment company ATF Invest The Bozymchak copper-gold mine is located in the Ala-Buka of Kazakhstan, which owned the Kadamzhay mining and region, Jalal-Abad Province, and was operated by Kaz Minerals metallurgical complex, was expected to start operations in plc of Kazakhstan (formerly Kazakhmys Gold Kyrgyzstan the Kadamzhay complex, although the startup date was not LLC). The deposit contained more than 146,000 t of copper, specified. ATF Invest was negotiating with partners from 23,000 kg of gold, and 138,000 kg of silver. In 2015, Kaz Tajikistan and Russia to provide the raw material for antimony Minerals produced the following from the Bozymchak copper- production to the Kadamzhay complex. Previously, raw gold mine: 449,000 t of ore at an average grade of 0.97% materials were obtained from the Novoangarskii processing copper, 3,100 t of copper in concentrate at an average grade plant in Russia and from Tajikistan; however, the Novoangarskii of 0.7% copper, 2,200 t of copper cathode, 554 kg of gold in processing plant was no longer able to provide the necessary concentrate, 388 kg of gold bars, and 3 t of silver granules. The tonnage of raw materials needed by both the Kadamzhay gold bar production at Bozymchak was expected to increase to complex and a new antimony processing plant in Russia owing between 780 and 900 kg in 2016, and copper cathode production to the limited supply of raw material at the Novoangarskii was expected to increase to 6,000 t (Kaz Minerals plc, 2016, deposit (MinerJob.ru, 2013; Manasova, 2015; Mir, 2015). p. 2, 16, 21, 41–42). Copper and Gold.—In 2015, Centerra Gold remained In 2015, Manas Resources Ltd. completed a feasibility study the leading gold mining company operating in Central Asia. of the Shambesai gold project in southwestern Kyrgyzstan. The company produced 16,200 kilograms (kg) (reported Based on the feasibility study, the Shambesai gold mine would as 520,694 troy ounces) of gold in 2015 compared with be able to produce 2.35 million metric tons per year of ore 17,700 kg (reported as 567,293 troy ounces) in 2014 owing to grading 3.7 g/t gold and containing 8,740 kg of gold. The the processing of lower grades of ore from cut-back 17 (waste combined total resources (measured, indicated, and inferred) that was produced from stripping to access the ore body) at the Obdilla and the Shambesai projects were estimated to be compared with the higher grades of ore processed from cut-back 17.3 Mt grading 2.2 g/t gold and containing 37,000 kg of gold. 15. A proposed amendment to the Water Code would allow The proved and probable reserves were estimated to be 2.4 Mt Centerra Gold to develop deposits at the glacier; if the Supreme of ore grading 3.7 g/t gold and containing 9,000 kg of gold. In Council were not to approve the Water Code amendment by 2015, Chaarat Gold Holdings Ltd. of the British Virgin Islands January 2016, however, Centerra Gold could be forced to stop was conducting the feasibility study at its Chaarat gold project. its operations at the Kumtor Mine. The Kumtor Mine’s total The total resources (measured, indicated, and inferred) were proven and probable resources in 2015 were estimated to be estimated to be 52.9 Mt at an average grade of 2.79 g/t gold and 69.2 million metric tons (Mt) at a grade of 2.5 grams per metric containing 147,000 kg of gold (Manas Resources Ltd., 2014, ton (g/t) gold. The open pit’s total measured and indicated p. 7–8; 2015, p. 7; Chaarat Gold Holdings Ltd., 2016, p. 13). resources were estimated to be 29.6 Mt at an average grade of In 2015, the Government awarded a tender to Vostok- 2.7 g/t gold, and the open pit’s inferred resources were estimated Geolodobycha Co. of Russia, which was a subsidiary of Amur to be 3.9 Mt at an average grade of 1.2 g/t gold.