K-a.kg
Issue 7, December 2010 (bimonthly)
Industry Update
Legal Update
Interim Government Decree «On
Nationalization of structures
In Kyrgyzstan, 3 companies are engaged
(residence) built on the land plot
in oil deposit operation
"Tash-Bashat" of Kara-Alma
forestry of Suzak district of Jalal-
In Kyrgyzstan, 3 companies hold oil mining
Abad region of November 3, 2010
licenses. They include: Kyrgyzneftegas OJSC
ВП N 141
(with 85.16% of shares held by the government),
International Oil Exploration Company, Beijing)
Prosecutor’s Office of the Kyrgyz Republic
and South Derric LLC (an Australian company
with Interim Government Decree of April 7,
2 companies hold exploration licenses (South
Derric LLC and KGN Hydrocarbons CJSC) and
nationalization of structures (residence)
15 companies hold oil exploration licenses.
built on the land plot «Тash-Bashat» of
Jalal-Abad region allocated for temporary
Deputy minister of natural resources:
None of the mining companies has left
Interim Government Decree «On
Kyrgyzstan
nationalization of land plot and non-
residential premises located at the
As reported by the deputy minister of national
address: 3 Neftyannikov St., Jalal-
Abad dated November 3, 2010 ВП N
AKIpress, in Kyrgyzstan none of the mining
companies has stopped operations. According to
him, investors have only reduced the scope and
duration of their operations. «Even in the south
Prosecutor’s Office of the Kyrgyz Republic
where the main events took place, no reduction
of August 27, 2010 and in accordance with
of operations has been observed. There were
many letters to the ministry signaling that in
some regions the volumes of investments have
reduced, but that’s all, reported L. Oseledko.
nationalization of the land plot and non-
address: 3 Neftyannikov St., Jalal-Abad,
Resolution of Government of
South Korean company acquired
exploration license for 12 types of metals
Kyrgyz Republic «On procedure for
in Kyrgyzstan
holding competition for right to
mineral resources for mining of
gold deposits Terekkan,
Molybdenum development company» LLC has
Perevalnoye, gold and antimony
acquired 3 exploration licenses for silver, lead,
deposit Terek and for exploration of
copper, antimony, mercury, cesium, rubidium,
Tereksai area» of December 27,
lithium, niobium, tantalum, molybdenum, and
2010 N 151-р
bismuth. All licenses were acquired on October 6.
One license entitles to explore for silver, lead,
In accordance with Article 16 of the Law of the Kyrgyz Republic «Оn Subsoil», for the
copper, antimony and mercury in Bardambot
area (Jumgal district, Naryn region). Another entitles to explore for cesium, rubidium, lithium,
niobium and tantalum in Tujuktor area (Kochkor
district, Naryn region). And the third entitles to
explore for copper, molybdenum, and bismuth in
Terek and exploration of Terek area, there was approved the procedure for holding
Novotujuk area (Issykata district, Chui region).
mineral resources for the development of
gold deposits Terekkan and Perevalnoye, and gold and antimony deposit Terek and
Over a month period the Ministry of
natural resources has issued 36 licenses
Resolution on allocation of gold and
and for one of them it was paid a $1,000
tungsten deposits Saryjel and
Kumbel for the development by one
of the companies
In Kyrgyzstan, over the period since September
18 till October 18, the Ministry of natural
the government on conversion of land from
mine/explore for mineral resources. For one of
them a bonus of 50.4 thou. soms ($1 thou.) was
transport, telecommunication, defense and
paid. The licenses, over the reporting period,
other purpose located in the territory of
Jege Tal village district of Naryn region
With the introduction of bonus requirement in
2009, the biggest amount was paid by Kumtor
deposits, reported the head of government
Gold Company - $18.696 ml. The amount of
bonus for Jerooy gold deposit was $6 ml., Taldy-
The Resolution directed to convert 118 ha
Bulak Levoberezhny - $4 ml, Bosymchak - $2
of land, including 80.33 ha of pastures and
ml, Kuru Tegerek - $1.8 ml., Terekkan - $1.6 ml,
37.67 ha of other lands used in agriculture
Andash cooper and gold deposit - $1.5 ml.,
The amounts of bonuses in 2009 were reduced
This plot will be provided for fixed-term
«to retain the current licensees and attract
private investments in crisis conditions».
development of gold and tungsten deposits
Rokisol LLC of compensation for losses of
according to the rates determined by the
«Kyrgyzneftegas»: A foreign company
intends to build in Kyrgyzstan a gasoline
refueling station and oil processing plant
project documentation with expert opinions
memorandum of understanding with a foreign
in respect of environmental and technical
company, reported the deputy chairman of the
AKIpress in November. According to him, this
ensure review and approval of construction
unknown company which «has its own place in
the geology industry and annual turnover of $17
deposits according to the current rules and
billion», has «serious intentions to build in
Kyrgyzstan a network of gasoline refueling
KR Government Resolution “On
Development of Jerooy gold
deposit” dated November 18, 2010
Over 13 years, private investments into
geological exploration for mineral
resources have increased 16 times as
CJSC has not performed the conditions of
license agreement № 3 dated October 23,
Since 1996, private investments into geological
exploration for mineral resources in Kyrgyzstan
license № 639 АЕ dated July 19, 2006, for
reported the Ministry of natural resources to
Republic, the right to mineral resources is
investments into mineral exploration reached
terminated by withdrawal (revocation) of
more than $4.7 ml. In 2009, this indicator was
license from a licensee if it fails within the
$76.7 ml. In 2008, the volume of investments
time limits specified in the license to submit
a technical work project approved by the
environmental and technical safety and by
In this regard, the Government instructed
- to cancel the mining license of Jerooy №
Three companies acquired the
documents worth of 200 thousand soms
to compete for the right to develop gold
deposits Terekkan, Perevalnoye, and
rights to develop Jerooy gold deposit and
necessary to compete for the right to use
mineral resources of gold deposits «Terekkan»,
«Perevalnoe» and gold and antimony deposit
Terek through the tender, which will end on
December 6. However, neither company has filed the documents to participate in the tender,
reported the Ministry of natural resources to Business AKIpress. Each competitor paid a non-refundable fee of 200 thou. soms for a set of geological information. All legal entities and individuals experienced in the development of ore deposits
of mineral resources can take part in the tender.
01.12.10
4 companies are prohibited from
operating at Sulukta brown coal deposit
4 companies prohibited from operating at
Sulukta brown coal deposit, reported the
ministry. It is reported that the State Inspectorate
for industrial and mining safety (Mining Control)
under the Ministry of natural resources has
conducted control inspections at the enterprises
producing Sulukta brown coal.
Control inspections at mines of K.Raimberdiev
LLC, Uzun-Sai LLC, Suluktakomur OJSC and
Kutchu LLC revealed «gross violations of
industrial safety requirements».
Based on the findings of inspections and for
systematic violation of industrial safety
requirements, the Mining Control standing expert
committee has ruled to suspend operations at
K.Raimberdiev LLC and Kutchu LLC and to
suspend licenses to operate hazardous
production facilities of Uzun-Sai LLC,
Suluktakomur OJSC for 3 months until
rectification of violations revealed, as specified in
the inspection reports.
02.12.10
Value of shares in Centerra at Canadian
stock exchange has reached its
maximum amount over the recent 4
years
The value of shares of Centerra Gold gold
mining company at the Toronto Stock Exchange
continues to grow and at the close of day on
December 1 it reached CAD 20.90 per share. In
24 hours, the value increased by CAD 0.860 or
4.29%. At the close of day on November 30, the
per share price was CAD 20.040.
The price of CAD 20.900 is the highest price
over the last 4 years. Earlier, the maximum rate
was registered on November 1 — CAD 20.35.
Shares of Centerra have been traded at the
Toronto Stock Exchange since 2004.
In April 2009, the Kyrgyz Government has
increased its share in Centerra from 15.66% to
33% (77.3 million shares).
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Copyright 2010 Kalikova & Associates
Source: http://www.k-a.kg/sites/default/files/miningiludec2010eng.pdf
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