After 20 years of struggle, Kyrgyzstan has full control of the Kumtor Gold Mine, one of the largest in Central Asia. Here’s the full story.
Kyrgyzstan takes control of the Kumtor Gold Mine
Kumtor Gold Mine was the heart of the battle between Centerra Gold, a Canadian mining company, and Kyrgyzstan. The mine comes second, following Peru’s Yanacocha mines in the first place. Located in the Tien Shan Metallogenic Belt, it is known as the Asian Gold belt. Starting in Uzbekistan, it spreads to Xinjiang in China. “We have just signed an agreement with Centerra to resolve this dispute. Kumtor is now owned completely by Kyrgyzstan,” stated Sadyr Japarov, the President of the country.
The mine is going to be under the direct control of Kyrgyzaltyn, a sate owned company after the settlement with Centerra. Last year the Kyrgyz foreign ministry invited foreign envoys for visiting the mines. Envoys from several nations such as the UK, India, and Azerbaijan were a part of this. Additionally, delegates from organizations such as UNFAO, United Nations Resident Coordinator, and UNDP were a part of the visit. It was following the takeover of the mine from the Canadian mining company.
What is the value of Kumtor?
Kyrgyzstan expects to make $53 million as the Canadian company is ending all litigations against the nation in the US, Canada, and Sweden. Moreover, valued at $3 billion, the mine will produce about 160-200 tons of gold in the next decade. This is close to $5 billion. “It is no exaggeration to say that today is a true turning point in the history of our country. Today, our people have taken responsibility for their fate into their own hands,” explained the President. Additionally, “our national assets are now exactly where they should be in our own hands. This proves that we are on the path of sustainable development and growth,” he added.
