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Day of downtime of mining companies costs budget of Kyrgyzstan $ 50,000

Every day of downtime of mining enterprises could cost the country’s budget more than $ 50,000. This conclusion was made by the International Business Council based on the calculation of preliminary losses incurred by the mining enterprises in Kyrgyzstan as a result of the events on October 5-8.

Most of the large mining companies were forced to suspend their work: Alliance Altyn LLC (Jerooy deposit), Kaz Minerals Bozymchak LLC (Bozymchak), Vertex Gold Company LLC (Dzhamgyr), Eti Bakyr Tereksay LLC (Tereksay), Full Gold Mining (Ishtamberdy), Chaarat Zaav (Chaarat) CJSC and Kichi Chaarat (Kuru-Tegerek) CJSC.

According to preliminary estimates, the amount of material damage incurred as a result of the pogroms by Alliance Altyn alone ranged from $ 15 million to $ 20 million, by Full Gold Mining — $ 1.5 million.

Contractors, whose machinery and equipment were destroyed, were also working at Jerooy deposit. The material damage of the only domestic company Aji Service LLC, which provides drilling and blasting operations at this field, is over $ 2 million.

Damage to machinery and equipment was also inflicted at Kuru-Tegerek field (Kichi-Chaarat CJSC), material damage of which is still being calculated.

The average monthly tax payments of seven enterprises are over $ 1.6 million. Due the forced downtime of these enterprises, the country’s budget risks losing this amount monthly and over $ 50,000 — daily.

«In total, these enterprises employ at least 4,000 workers. Given that companies are now suffering huge losses, there is a real risk that all these people may be left without jobs and wages. To get out of this situation, we call on the government of Kyrgyzstan, law enforcement agencies and local self-government bodies, first of all, to ensure safety of mining enterprises and to assist in the early resumption of work at these enterprises, including by conducting explanatory work among the local population,» the International Business Council stressed.