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The Mineral Industry of Kyrgyzstan in 2014

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The Mineral Industry of Kyrgyzstan in 2014 2014 Minerals Yearbook KYRGYZSTAN U.S. Department of the Interior December 2017 U.S. Geological Survey THE MINERAL INDUSTRY OF KYRGYZSTAN By Karine M. Renaud Kyrgyzstan is a landlocked mountainous country with limited gold area in the Jumgal District, the Sarykoo gold area in the transportation and energy infrastructure. The country ranked Kochkor District, the Aksai coalfield in the Aktala District, and second in the world in mercury production in 2014, accounting the Kashkasu brown coalfield in the Jumgal District (Central for 3% of total world production. Gold remained the primary Asian Countries Geoportal, 2015). mineral (in terms of value) mined in Kyrgyzstan. Other mineral commodities mined in the country were clay, coal, fluorspar, Production gypsum, lime, natural gas, crude petroleum, sand and gravel, sand, and silver. The country’s undeveloped mineral resources In 2014, uranium production (U content) increased by 31% included bauxite, copper, iron ore, lead, rare earths, sulfur, tin, and coal production increased by 25%. Production of mercury tungsten, and zinc (table 1; AZoMining, 2013; George, 2016). decreased by 35%, and gold production decreased by 5%. Data on mineral production are in table 1 (FOR.kg, 2014). Minerals in the National Economy Structure of the Mineral Industry Kyrgyzstan’s real gross domestic product (GDP) decreased by 3.6% in 2014 compared with an increase of 10.9% (revised) Table 2 is a list of the major mineral industry facilities, their in 2013 owing to the reduction in gold production. The nominal locations, and their annual capacities. GDP was $6.74 billion1 in 2014. The value of industrial output decreased by 1.4% compared with an increase of 20% Mineral Trade in 2013. Mineral industry output, by value, increased by 7% to $98 million in 2014 from $92 million in 2013. The country Kyrgyzstan’s total value of trade in 2014 was $6.41 billion, of had 485 mining enterprises, of which 8 were owned by the which exports totaled $1.46 billion compared with $1.55 billion Government, 1 was owned by a municipality, and 476 were in 2013, and imports totaled $4.95 billion in 2014 compared with owned privately (National Statistical Committee of the Kyrgyz $5.42 billion in 2013. In 2014, the value of gold exports was Republic, 2014, p. 82, 87, 89, 91; 2015, p. 71, 73; Asian $598.5 million, which accounted for 41% of the total exports; Development Bank, 2015, p. 124). cement (portland), $12.6 million, which accounted for 1% of total exports; coal, $6.6 million; silver, $2.7 million; and Government Policies and Programs fertilizer, $2.2 million. The tonnage of exports was 2.2 million metric tons (Mt) of coal, 1.3 Mt of cement, and 34,000 metric According to a draft agreement that was approved in May 2014, tons (t) of fertilizer. In 2014, the major export partners, by Kyrgyzstan was expected to join the Eurasian Economic Union value, were Switzerland (which received 33% of Kyrgyzstan’s (EAEU) in January 2015. EAEU is an international economic exports); Kazakhstan (23%); the United Arab Emirates and integration union whose members include Belarus, Kazakhstan, Russia (8% each); Uzbekistan (7%); and Turkey (5%). In 2014, and Russia. The EAEU was created to establish a customs union the value of fertilizer imports was $67.4 million; natural gas, for the member countries to strengthen their economies and $43.1 million; and coal, $38.8 million. The country’s major increase their competitiveness in the global market (Ereport.ru, import partners, by value, were Russia (which supplied 21% 2014; Tengri News, 2014). of Kyrgyzstan’s imports); China and Japan (5% each); and On April 23, 2014, the Parliament passed the “Glacier Kazakhstan (3%) (National Statistical Committee of the Kyrgyz Law,” which prohibits activities that cause damage to glaciers Republic, 2014, p. 135–136, 140–142). and specifies that, if glaciers are damaged, the companies responsible must pay compensation at a rate determined by Commodity Review the Government. Centerra Gold Inc. (Centerra) of Canada, the operator of the Kumtor Mine, could be affected by the law Metals because the Kumtor Mine bisects a glacier. The law must be signed by the Government before it takes effect; however, no Antimony.—The Kadamzhay mining and metallurgical signing date had been determined (Lazenby, 2014; Thomson complex was the sole antimony producer in the Batkenskaya Reuters, 2014). Oblast’. It remained closed until mid-2014 and did not operate In 2014, the State Agency for Geology and Mineral Resources at full capacity in the second half of the year owing to the lack announced an auction for the subsoil rights to the following of raw materials. Previously, raw materials were delivered to the coal- and gold-rich areas in the Naryn Region: the Karakichi Kadamzhay complex from the Novoangarskii processing plant in Russia and from Tajikistan. The Novoangarskii processing 1Where necessary, values have been converted from Kyrgyzstani soms (KGS) plant was unable to provide the necessary tonnage of raw to U.S. dollars (US$) at an average rate of KGS58.86=US$1.00 for 2014 and materials needed by both the Kadamzhay complex and by a new KGS49.22=US$1.00 for 2013. KYRGYZSTAN—2014 26.1 antimony processing plant in Russia owing to the limited supply In 2014, several other gold deposits were at the exploration of raw material at the Novoangarskii deposit (MTRK Mir, 2015; stage, were auctioned, or were being developed. The MinerJob.ru, 2013a; Sytenkova, 2014). Taldy-Bulak Levoberezhny gold mine was a joint venture In 2013, several roads along the Kyrgyzstan-Tajikistan border between Superb Pacific Ltd. of China, a subsidiary of Zijin were closed by the Kyrgyzstan Government and remained closed Mining Group (60%), and Government-owned Kyrgyzaltyn in 2014; these closures stopped the delivery of raw materials (40%); the mine is located in the Syn-Bulak Valley of the from Tajikistan. Since 1991, when Kyrgyzstan, Tajikistan, and Chuiskaya Oblast’. The gold resources at the mine were Uzbekistan gained independence from the Soviet Union, the estimated to have an average grade of 7.23 g/t and to contain borders between the countries have not been well defined. This 64,625 kg of gold. The mine, which was expected to start led to frequent clashes between civilians along the ill-defined operations in 2014, had a production capacity of 4 metric tons border between Kyrgyzstan and Tajikistan (Radio Free per year (t/yr) of gold. The commissioning of the mine was Europe—Radio Liberty, 2013; KyrTag, 2013; FOR.kg, 2014; delayed until the third quarter of 2015 owing to a lack of energy Sytenkova, 2014). (OJSC Kyrgyzaltyn, 2011; Interfax, 2013; Kabar, 2014). Copper and Gold.—As of 2013, Kyrgyzstan had 68 known The Bozymchak copper-gold mine is located in the gold deposits with combined resources of 565 t of gold. Only Ala-Buka region, Jalal-Abadskaya Oblast’, and was operated a few of the deposits were mined. Centerra, which operated by Kaz Minerals plc of Kazakhstan (Kaz Minerals) (formerly the Kumtor Mine in Kyrgyzstan, was the leading Western Kazakhmys Gold Kyrgyzstan LLC). The deposit contained more gold-mining company operating in Central Asia. The company than 146,000 t of copper, 23,000 kg of gold, and 138,000 kg produced 17,657 kilograms (kg) of gold in 2014 owing to the of silver. Kaz Minerals started production at the Bozymchak processing of lower grades of ore from cut-back 16 (waste from copper-gold mine in the first half of 2014; the mine produced an external dump) compared with the higher grades of ore 426,000 t of ore at a grade of 1% copper, and production at processed from cut-back 15. The Kumtor Mine’s total proven the mine was expected to be ramped up to a commercial level and probable resources were estimated to be 68.5 Mt at a grade of production in 2015. The mine’s operations would start as of 2.8 grams per metric ton (g/t) gold in 2014 compared with open pit mining, and the annual output was expected to be 85.2 Mt at a grade of 3.1 g/t gold in 2013. The open pit’s total 6,000 t/yr of copper. According to the general director of Kaz measured and indicated resources were estimated to be 29.5 Mt Minerals, construction of a beneficiation plant was completed at an average grade of 3.0 g/t gold, and the open pit’s inferred in 2014. The annual capacity of the beneficiation plant was resources were estimated to be 2.7 Mt at an average grade of expected to be 1 million metric tons per year (Mt/yr) of ore, 1.5 g/t gold. According to the Gold and Silver Sale Agreement, and it would employ 180 people. The plant would produce Government-owned OJSC Kyrgyzaltyn purchased gold dore concentrate, which would be exported to the Balhashkii smelter produced at the Kumtor Mine for processing at its refinery, in Kazakhstan (Zijin Mining Group Co. Ltd., 2011; Kazakhmys and Kyrgyzaltyn was responsible for delivering processed Plc, 2013, p. 11, 12, 34; MinerJob.ru, 2013b; Trilling, 2013; gold within 12 days of shipment (Centerra Gold Inc., 2014, Turusbekov, 2013; Kabar, 2014; Kaz Minerals plc, 2014, p. 11, 25, 33). p. 4, 14). On May 28, 2013, about 1,000 people from the local In 2014, Mineral Resources Ltd. of Australia explored the community went on strike, demanding nationalization of the South Kyrgyz gold project (100% ownership) on the Tien Shan mine and improvements in living conditions. Strikers blocked gold belt. The South Kyrgyz gold project included five mines— the main road that leads to the capital, Bishkek, which affected the Mamaksai, the Obdilla, the Shambesai (which was under the movement of people and supplies to and from the mine.
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