Kyrgyzstan to revise agrmnt with Canadian gold-mining company

Government of Kyrgyzstan plans revising the terms of an agreement with Cameco Corporation of Canada on gold mining at the Kumtor deposit so as to increase state budget revenues from the mine’s operations, Deputy Prime Minister Daniyar Ussenov said at a cabinet meeting Wednesday.

Today, the government gets a mere 15 percent of profits from gold production at Kumtor, which stands in a marked contrast to the 70 percent it received in the early periods of the deposit’s development.

“Current reserves of gold at Kumtor are estimated at 731 tons and with account of this figure mining will continue there through to 2026,” Ussenov said. “Kumtor is a unique deposit in terms of reserves and it must be this country’s pride, not its shame”.

The government, the national company Kyrgyzaltyn and Cameco have drafted a memorandum of understanding that is expected to lay a foundation for a Law on the Kumtor Deposit.

“The goal now is to attain a new general agreement and a new agreement on concession, as well as to pass the new Law on Kumtor,” Ussenov said.