Officials of the Ministry of Natural Resources, Ecology and Technical Supervision of Kyrgyzstan submitted for public discussion the draft Concept for Development of the Geological and Mining Industries for 2023-2035.
The authors pointed out that it was aimed in the long term at «ensuring the stable socio-economic development of the country, regions and creation of a favorable investment climate that stimulates transparent and responsible mining by public and private enterprises.»
It is noted that the development of minerals should ensure the formation of financial resources for the development of the economy of the republic. Subsoil revenues should be directed not only to solving existing problems, but also to measures to protect the environment.
According to the law drafters, the state of national security of Kyrgyzstan in the field of geological and mining industries is negatively affected by the lag in the growth of reserves, depletion of minerals, and the irrational use of mineral wealth.
Kyrgyzstan in the near future risks to exhaust its capabilities in this area, which may lead to the loss of sustainable development of the industry, the economy, an increase in unemployment, and migration of the population.
The background statement to the concept states that numerous studies show that the slowdown in the development of the mining industry, the decrease in foreign and national investment are due to the following main reasons:
- Instability of the political situation in the country negatively affects the international reputation of the mining industry and this entails the suspension and outflow of capital;
- Relative imperfection and volatility of the legal framework of the mining industry;
- Imperfection of the system of interaction between state bodies managing the industry, passive position of the state in disputes;
- Conflict situations of subsoil users with local authorities and the population;
- Excessive interference of local authorities and local self-government bodies in the activities of subsoil users, including by creating artificial and bureaucratic obstacles in obtaining access to mining land plots;
- Inefficient interaction between local governments and the population, hindering the development of the mining industry;
- Protests of the local population against subsoil users;
- Manifestations of corruption in state and local authorities, an abundance of control procedures, examinations that make it difficult to promote any projects.
The ministry noted that these problems reduce investors’ confidence. The latter believe that state guarantees to ensure the rights to protect private property are not fully implemented.
The situation in the field of subsoil use of the country is aggravated by insufficient state funding for geological exploration.
The concept will be implemented through the adoption of medium-term and long-term government programs aimed at developing the geological and mining industries.