Tajikistan might resume search for investor for biggest silver deposit
DUSHANBE. July 31 (Interfax) - Tajikistan's State Committee for Investment and Property Management might soon resume the search for an investor to develop the country's largest silver deposit, Konimansuri Kalon, the deputy chairman of the committee, Shuhrat Rahmatboyev said at a press conference on Tuesday.
He said this possibility is being considered because the country has not been able to reach an agreement with the consortium led by Kazakhstan's Kazzinc, which is the only bidder in the tender for the rights to develop the deposit.
"The tender is continuing for the fourth year already, and the parties still haven't reached an agreement," Rahmatboyev said.
"If Tajikistan and the Kazzinc consortium do not reach an agreement on the Konimansuri Kalon deposit then Tajikistan might call another tender to select a contractor for the development of this deposit," he said.
The consortium of Kazzinc, JSC Konimansur (Kazakhstan), commodities trader Glencore and Tajik miner Adrasman was left as the only bidder in the tender for the deposit last September. Prior to this, international mining giant BHP Billiton was seen as a rival.
"The proposals presented by Kazzinc do not suit us, although it's important that the work benefit both parties. This issue is being discussed at the level of the state commission and we should reach an agreement on this soon," Rahmatboyev said, declining to specify which of the consortium's proposals Tajikistan is unhappy with.
The tender was announced in 2009, but the results have yet to be announced. The adviser and guarantor of transparency in the investor selection process is the International Finance Corporation, the private financing arm of the World Bank.
The Konimansuri Kalon (Big Konimansur), located near the town of Adrasman in the Sughd Province in northern Tajikistan, is one of the largest silver deposits in the world. Exploration was conducted in 1970s and 1980s. The deposit is estimated to hold 1 billion tonnes of ore graded at 49 g/t silver with lead content of 4,900 grams and zinc - 3,800 grams per tonne. The cost of developing the deposit is estimated at $2 billion.
Kazzinc is a major integrated zinc producer with considerable copper, precious metals and lead output. The company owns Kazakhstan's largest gold producer Altyntau. It is controlled by the Glencore group.
It was reported earlier that Kazakhstan's JSC Konimansur owns Tajikistan's Adrasman Mining and Processing Works, which mines lead ore and processes it into lead-silver concentrate.