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Why Kyrgyzstan should not agree to 100% share in Kumtor

An expert, Doctor of Technical Sciences Duyshenbek Kamchybekov, told why Kyrgyzstan should not agree to 100% share in Kumtor Gold Company CJSC today at a press conference in 24.kg news agency.

According to him, the reserves at the mine will be depleted in the near future. «Mining works will be completed by 2023. While Kumtor has been working since 1997, thanks to its money, Centerra Gold acquired and prepared other fields — in Mongolia, Turkey, and North America. Centerra suggests us to take100 percent share in Kumtor, but abandon 26.7 percent share in Centerra. There were also other conditions,» Duishenbek Kamchybekov said.

«After the sale of gold, Centerra received an income of $ 8.1 billion. Kyrgyzstan received $1,215 billion of the sum in the form of taxes and social payments. And the total amount in the form of taxes, social services, public procurement for Kyrgyzstan was $ 3.1 billion,» he added.

«The project Kumtor will work in the mountain area until 2023, and after — until 2026 — using warehouse stocks. If this year they are going to extract about 17 tons of gold, then in the future — 14-15 tons, in 2023 — 6 tons, and in the last year — 2.5 tons of gold. The budget of our country will receive less and less money. Today we receive 7-9 billion soms,» said Duishenbek Kamchybekov.

If the reserves of Kumtor are depleted, how will we replenish our budget? Let’s better continue to participate in other projects, where we have our share — about 27 percent.

Duishenbek Kamchybekov

The expert stressed that before taking the decision the government of Kyrgyzstan should attract qualified specialists and make exact calculations.

«The Cabinet of Ministers should have reasoned arguments. We have questions — whether we can collect a trust fund of $ 69 million, whether we will be able to conduct reclamation of this facility, and so on,» he concluded.