Kyrgyzstan bans foreign companies from future mining projects

MOSCOW – Kyrgyzstan on Friday banned foreign companies from future large mining projects, although existing licences are unaffected, in the first major order by its new president.

The economy of the Central Asian nation relies heavily on gold mining, particularly after two other sources of wealth – trade with neighbouring China and remittances from migrant labourers working in Russia – were hit by the Covid-19 pandemic.

Kyrgyz President Sadyr Japarov, who was inaugurated on Thursday, signed the order which only allows the development of “subsoil areas of national importance” by a state-owned company.

Firms currently holding rights to develop deposits in the country are excluded from the order. Canada’s Centerra Gold Inc is the largest foreign investor in Kyrgyzstan. It mines gold at Kumtor, Kyrgyz largest gold deposit.

Kyrgyzstan has been considering options for development of its Zhetim iron-ore deposit in recent months. The country’s gross domestic product dropped 8.6% in 2020, the biggest decline in 26 years.

Gh Extractives

Ghextractives.com is an independent multimedia portal that seeks to provide credible information and news content to readers especially players in the extractive sector in Ghana, Africa and beyond. It also provides a unique platform for players in the energy sector to market their products and reach a wider audience

View All Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.