The Mineral Industry of Tajikistan in 2017-2018
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2017–2018 Minerals Yearbook TAJIKISTAN [ADVANCE RELEASE] U.S. Department of the Interior December 2020 U.S. Geological Survey The Mineral Industry of Tajikistan By Karine M. Renaud Note: In this chapter, information for 2017 is followed by information for 2018. In terms of world production in 2017, Tajikistan ranked third 35%; bituminous coal, by 30%; zinc concentrate (Zn content), in antimony and mercury (excluding United States production) by 26%; lead concentrate (Pb content), by 18%; and gold ore and accounted for 9% and 3% of world production, respectively. (Au content), by 10%. Production of salt decreased by 33%; In addition, aluminum, cement, coal, crude petroleum, gold, primary aluminum, by 20%; natural gas, by 13%; and crude gypsum, lead, natural gas, salt, sand and gravel, silver, and zinc petroleum, by 7%. Data on mineral production are in table 1. were produced (table 1; George, 2019; Klochko, 2019). Structure of the Mineral Industry Minerals in the National Economy Table 2 is a list of major mineral industry facilities. In 2017, Tajikistan’s real gross domestic product (GDP) increased by 7.1% compared with 6.9% in 2016. The nominal Commodity Review GDP was $7.2 billion. Industrial production (including energy, Metals gas, and water) increased by 21.3% in 2017. Within the industrial sector, manufacturing production increased by 22.7%, Aluminum.—In 2017, state-owned Tajik Aluminum Co. and production in the mining sector increased by 22.5%. In (TALCO) was the sole producer of aluminum in Tajikistan; 2017, mining sector production, in nominal prices, amounted to its production decreased by 20% to 103,000 metric tons (t) 4.52 billion somoni ($515 million)1 and manufacturing sector of aluminum from 129,000 t in 2016. The decrease was production amounted to 11.75 billion somoni ($1.3 billion) attributed to a reduction in the number of electrolysis baths, (Agency on Statistics Under the President of the Republic of technical issues, and a delay in the supply of petroleum coke. Tajikistan, 2018, p. 151, 160; Asian Development Bank, 2018, TALCO and Yunnan Construction and Investment Group p. 236; World Bank, The, 2018). of China planned to build a new aluminum smelter in the In 2017, Tajikistan’s exports totaled $1.2 billion compared western town of Tursunzoda. The cost of construction of the with $899 million in 2016, and imports totaled $2.8 billion proposed smelter was estimated to be between $1.5 billion compared with $3.0 billion in 2016. In 2017, exports of precious and $1.6 billion, and construction was expected to be and semiprecious stones and metals increased to $214 million completed in 18 months. The total capacity was expected to from $99 million in 2016, and they accounted for 18% of total be 503,000 metric tons per year (t/yr) of aluminum. TALCO exports. Exports of nonprecious metals decreased by 1.8% to also signed a memorandum of cooperation with Yunnan $229 million from $225 million in 2016, and they accounted Construction and Investment Group, Road and Bridge Corp. of for 19% of total exports. Exports of mineral products increased China, and General Nice Investment Ltd. of China to upgrade to $478 million from $307 million in 2016. The country’s the existing smelter located 60 kilometers west of Dushanbe. main export partners were Kazakhstan (which received 27% The expected date of completion was not available (table 1; of Tajikistan’s exports), Turkey (20%), Luxembourg (10%), Avesta Information Agency, 2018a; Interfax, 2018a; Fergana Afghanistan and Switzerland (8% each), and Russia (6%) News, 2019). (Global Cement, 2017; Agency on Statistics Under the President Gold.—In 2017, Tajikistan’s production of gold increased to of the Republic of Tajikistan, 2018, p. 246, 248, 254). 5,500 kilograms (kg) from 5,000 kg (estimated) in 2016. Gold In 2017, imports of precious and semiprecious stones and producers in Tajikistan were JV Zarafshon Gold Company LLC, metals decreased by 29% to $5.0 million from $7.0 million which was a joint venture of a subsidiary of the Government in 2016; imports of nonprecious metals decreased by 18% to and Zijin Mining Group Co. Ltd. (ZGC) of China; Tilloi Tochik $284 million from $347 million in 2016. The country’s main [Tajik Gold], which in 2017 was owned by JV Zarafshon (75%) import partners were Russia (which supplied 33% of Tajikistan’s and the Government (25%); the Tajik-Canadian joint venture imports), China (20%), and Kazakhstan (19%) (Agency on Aprelevka; LLC Pakrut, a wholly owned subsidiary of China Statistics Under the President of the Republic of Tajikistan, Nonferrous Gold Ltd. (CNG) of China; the private company 2018, p. 246, 249, 254). Arteli Odina; and an artisanal mine. JV Zarafshon, which was Production the country’s leading gold producer, operated the Jilau and the Taror Mines, which produced a combined 4,043 kg of gold in In 2017, production of mercury increased by an estimated 2017 (tables 1, 2; Kabar News Agency, 2018; Zijin Mining 233% compared with that of 2016; cement and sand and gravel, Group Co. Ltd., 2018, p. 38, 39). by 129% each; silver ore (Ag content), by 43%; lignite, by In 2017, CNG operated the Pakrut Mine through its subsidiary LLC Pakrut and produced 162 kg of gold. In February, snowfall 1Where necessary, values have been converted from Tajikistani somoni (TJS) in the Pakrut gold mine area caused an interruption in the power to U.S. dollars (US$) at an average annual exchange rate of TJS8.77=US$1.00 supply, damage to plant equipment, and flooding of tunnels for 2017 and TJS7.88=US$1.00 for 2016. TAJIKISTAN—2017–2018 [ADVANCE RELEASE] 46.1 in the mine that halted production for the remainder of the In 2018, owing to continued financial difficulties and a delay year. CNG was able to restore production and was expected in the coke supply, TALCO’s aluminum production decreased to complete the infrastructure construction in 2018 (China by 7%. The reasons for TALCO’s financial difficulties included Nonferrous Gold Ltd., 2018, p. 4). outdated equipment and a decrease in the number of electrolytic In 2017, Arteli Odina planned to apply for mining licenses for baths. Another reason for the decrease in aluminum production new gold deposits. In 2005, the company had obtained mining was the interrupted import of coke coal (Fergana News, 2019). licenses to extract gold in Shungov Khovalin, Khatlon Province. The company began mining gold in 2007, and the resources at Outlook the company’s older Shungov Khovalin licenses were expected Tajikistan relies heavily on foreign investment and loans for to be depleted by 2019 (Asia-Plus, 2017). infrastructure development and mineral enterprises. In 2017 and On June 24, the President of Tajikistan issued a permit to 2018, foreign companies (mainly from China) continued to be build the CJSC TALCO Gold mining and processing plant. The engaged in production of aluminum, gold, lead, and zinc in the construction of the plant was expected to be completed by 2020. country, and they are expected to continue to increase existing The production capacity was expected to be 1.5 t/yr of gold and production and to invest in new production projects of these 16 t/yr of antimony. In April, the President signed a decree that commodities in coming years. Tajikistan also plans to increase allows TALCO to transfer a 25-year license to TALCO Gold its aluminum production to 339,000 t by 2025 and to 380,000 t to develop mineral resources in the Konchoch area. The decree by 2030 (Interfax, 2018a). also allows TALCO to transfer 50% of TALCO Gold shares to a foreign investor. The Konchoch area contains three deposits: the References Cited Chul’boi gold-silver deposit, the Konchoch gold-silver-mercury- fluorite deposit, and the Shahkon gold-antimony-arsenic-fluorite Agency of Social Insurance and Pension under the Government of the Republic deposit. The mineral resources in the Konchoch Mine were of Tajikistan, 2016, National Development Strategy of the Republic of Tajikistan for the period up to 2030: Dushanbe, Tajikistan, Agency of Social estimated to be 268 t of antimony, 205 t of fluorite, 184 t of Insurance and Pension under the Government of the Republic of Tajikistan, mercury, 55 t of gold, and 44 t of silver (Chorshanbiyev, 2017; 96 p. (Accessed August 21, 2019, at http://nafaka.tj/images/zakoni/new/ Interfax, 2018b). strategiya_2030_en.pdf.) Agency on Statistics Under the President of the Republic of Tajikistan, 2018, MINERAL INDUSTRY HIGHLIGHTS IN 2018 Sotsial’no-economicheskoye polozheniye RT za Yanvar’-Dekabr’ [Social- economic positions of the Republic of Tajikistan January–December]: Dushanbe, Tajikistan, Statistical Agency Under the President of the Republic In terms of world production in 2018, Tajikistan ranked of Tajikistan, 289 p. (Accessed August 13, 2018, at http://stat.ww.tj/51fb883f third in antimony and mercury production and accounted for 423d5b8917905c45f3ebb697_1518696622.pdf.) 10.3% and 2.5% of world production, respectively. In 2018, the Asian Development Bank, 2018, Asian development outlook 2018—How country’s real gross domestic product (GDP) increased by 7.3% technology affects jobs: Mandaluyong, Philippines, Asian Development Bank, 317 p. compared with a 7.6% increase (revised) in 2017. The nominal Asia-Plus, 2017, Artel “Odina” v poiskah novogo zolotogo “klada” [Artel’ GDP was $7.5 billion (table 1; World Bank, The, 2019a, b; “Odina” is in search of new gold treasure]: Media-group “Asia-Plus,” George, 2020; Klochko, 2020). October 13. (Accessed August 17, 2018, at https://asiaplustj.info/news/ In 2018, the National Development Council under the Office tajikistan/economic/20171013/artel-odina-v-poiskah-novogo-zolotogo-klada.) Avesta Information Agency, 2018a, Aluminiyeviy spad—V Tajikistane of the President of Tajikistan discussed the implementation posledniye 6 let idet spad proizvodstva aluminiya [Aluminum decrease— of the National Development Strategy of the Republic of Production of aluminum was decreasing for the last 6 years in Tajikistan]: Tajikistan for 2018 ̶ 30, which is aimed at improving the social Dushanbe, Tajikistan, Avesta Information Agency, January 22.