The Bankruptcy Department under the Ministry of Economy and Commerce of Kyrgyzstan launched the procedure of bankruptcy of Kara-Balta Mining Plant OJSC. The Chairman of the Central Committee of the Mining and Metallurgical Trade Union, Eldar Tadzhibaev, reported.
At the same time, he notes that the process may hinder implementation of the presidential decree on imposing a temporary ban on the export of gold ore and gold concentrate from Kyrgyzstan from May 1, 2023. According to the document, it is Kara-Balta Mining Plant that has been granted the exclusive right to process gold ore and gold concentrate mined and produced on the territory of the republic.
«In connection with the adoption in December 2019 of the law banning the mining and processing of uranium, the enterprise found itself in a difficult situation. Nevertheless, the shareholders of Kara-Balta Mining Plant set the task of preserving jobs, for which they additionally raised and invested money in the amount of more than $4 million to convert production to the processing of gold ores and concentrates. For the full implementation of the decree of the head of state, additional investments and construction of new production lines and capacities are needed. The company is ready to raise such funds,» said Eldar Tadzhibaev.
The company currently has accounts payable to government agencies. The company raised funds to pay it off. But the process of bankruptcy continues.
«Bankruptcy of Kara-Balta Mining Plant will lead to mass dismissal of employees, sale of the company’s assets at reduced prices, freezing of the current production program, multimillion-dollar lawsuits from shareholders and their partners, and other negative consequences. This is not a way out of the current situation. The Mining and Metallurgical Trade Union of Kyrgyzstan considers it necessary to stop the process of bankruptcy of Kara-Balta Mining Plant OJSC,» Eldar Tadzhibaev concluded.
