Australia's Robust Resources buying another gold-copper field in Kyrgyzstan
BISHKEK. Dec 23 (Interfax) - Australia's mining company Robust Resources Limited has initiated a deal to buy 100% of Talas Copper Gold, a wholly owned subsidiary of the South African company Gold Fields that owns a license to explore the Taldy Bulak gold and copper deposit in Kyrgyzstan's Talas region.
Talas Copper Gold told Interfax that the deal totals $5 million, $2 million of which will by paid in cash to Gold Fields by Robust Resources, whose shares are listed on the Australian Securities Exchange. The other $3 million will be paid with Robust Resources' own stock. The companies intend to close the deal within three months.
Talas Copper Gold said the decision to sell the company was made by the company's owner. In addition, experts told Interfax that Gold Fields is leaving Kyrgyzstan due to a number of problems with local residents, who have prevented this project from going ahead.
Kyrgyzstan's State Agency of Geology and Mineral Resources estimates gold reserves in Taldy Bulak to be 120 tonnes and copper - 80,000 tonnes. The project for processing the ore will take at least five years and employ around 2,000 people. Talas Copper Gold also holds exploration licenses for the nearby Barkol, Kentash and Korgontash fields.
Talas Copper Gold was registered in Kyrgyzstan on February 10, 2005. The company was originally a joint venture between Gold Fields and Orsu Metals, a British corporation. In July of 2012, Orsu Metals sold Gold Fields 40% of its stake in Talas Copper Gold for $10 million. The British company is leaving its projects in Kyrgyzstan to step up operations at the Karchyga field in Kazakhstan.
In August of 2013, Robust Resources closed a deal to purchase Andash, one of the largest gold and copper projects in Kyrgyzstan, from Australia's Kentor Gold for $15.32 million. The Andash field is also located close to Taldy Bulak. Gold reserves are estimated at 47 tonnes, and copper reserves at over 70,000 tonnes.
Kentor Gold said the sale represents the start of a monetization of marginal assets. The company decided to focus on the development of copper, gold and silver at the Jervois field in Australia.
The Andash project is one of six projects in Kyrgyzstan ready for development. All permits for the pre-design and design stage have been received, road and construction equipment has been acquired, the core equipment has been ordered and a social package has been developed for local residents.
The company was forced to halt work on the project in 2011 due to protests by local residents and recommendations from parliament to suspend work until the dispute with residents was settled. Last year an international environmental impact study was conducted, finding that the deposit could be developed in terms of environmental impact. An interdepartmental commission was set up in August 2012 to resolve the dispute.
Sources at Andash Mining have told Interfax that local residents could not be persuaded that the mine would be safe, so the investor decided to halt active operations in the country.
