Kyrgyz president launches underground gold mining project at Kumtor

BISHKEK. Aug 27 (Interfax) - The Kumtor gold mine will continue to operate for another 40-50 years, Kyrgyz President Sadyr Japarov said at a ceremony on Wednesday, launching an underground gold mining project at Kumtor Gold Company.

"Underground gold mining has officially started at the Kumtor mine. The underground project is expected to operate for 17 years, and the geological reserves of 147 tonnes of gold have been put on the state's balance sheet," Japarov said.

The main advantage of the underground mining method is that it helps limit excessive volumes of barren rock, he said.

"Gold mining operations at quarries will continue alongside underground mining. But priority will gradually be given to underground mining. Kumtor has a great future, it will continue to operate for another 40-50 years for the benefit of the country and its people," Japarov said.

The enterprise's revenue totaled $3.445 billion between May 2021 and today, Japarov said. The Kyrgyz budget received $891.6 million in taxes and other payments. More than 54 tonnes of gold were produced over this period.

In addition to the underground gold mining operations, Kumtor will start tailings retreatment, he said. The facility stores more than 100 tonnes of gold today. The effort will not only bring profit but will also help eliminate a threat to the environment.

Kumtor is one of the largest gold mines in Central Asia, located in the Issyk-Kul region in the north of Kyrgyzstan, 60 km from the border with China at an altitude of more than 4,000 meters. It was one of the largest foreign investment projects in Kyrgyzstan. The mine was owned by the Canadian company Centerra Gold Inc., which operated it through its subsidiary Kumtor Gold Company under a 2009 agreement with the Canadian government. In May 2021, Kyrgyzstan transferred the mine under its own control, citing environmental concerns and tax claims. Centerra initiated international arbitration to challenge the actions of the Kyrgyz government, and Kumtor Gold Company filed for bankruptcy. After signing a settlement agreement with Kyrgyzstan, Centerra dropped all claims against the country.

The Kyrgyz government terminated external management at the mine in February 2023. Kumtor is currently a subsidiary of the state-owned OJSC Kyrgyzaltyn.

The mine had been producing 15-17 tonnes of gold annually until 2021 inclusive. It produced 17.3 tonnes in 2022, 13.5 tonnes in 2023, and 12.5 tonnes in 2024.