The Kyrgyz Republic
- Straightforward, supportive, and competitive mining law.
- Transparent and certainty of title.
- Absence of excessive bureaucracy and red tape.
- Low corporate taxes.
- Modern infrastructure providing for a low cost environment.
- Experienced and qualified local workforce.
- Friendly population: low-risk environment.
A Fair, Clear and Predictable Mining Law
- The World Bank advised the Kyrgyz government in the drafting of its mining law and in a report dated November 2014 stated that: “There has been substantial progress in the mining sector in the past three years. A new law on natural resources and new regulations on licensing in the natural resources sector were drafted. In March 2011, Kyrgyzstan became compliant with the Extractive Industry Transparency Initiative”
- According to the Kyrgyz mining law once a mining plan and drill reserve calculation is submitted and accepted, a mining permit must be issued within 60 days. For example Zijin received its mining license immediately as it was in existence since the Soviets first defined the initial reserve. Charaat Gold took less than 30 days to receive the approval of its license.
Tolerant, Literate Population
- In Central Asia Kyrgyz Republic’s religiously tolerant population, literate (literacy rate of 99%), and a moderate democratic and secular government and relatively low crime rate (6.4 homicides per 100,000 compared to Mexico’s 20.4 and Mali’s 18). Most of its population is Muslim although both Christian and Muslim holidays are celebrated by the entire population and Christmas and Ramadan are official holidays. The Republic’s East, where the capital Bishkek is (and our Borubai project) is well-insulated from the country’s eastern neighbors. Kazakhstan is directly to the North and China is directly South and South-East. The 7,000 meter high Tien Shan mountains form a formidable barrier directly West.
Other Companies demonstrate a viable business environment
- In Tengri Resources’ words: “The government seeks to create an environment conducive to foreign investment and to partner with ‘competent and capable developers while the process of democratization offers strong prospects for long-term stability”.
First Mover Advantage
- Companies are benefiting from what is called the ‘first mover advantage’. They have their respective fingers on the pulse of Kyrgyz Republic and are well aware of the misinformation that has been passed off internationally regarding doing business in the country. They are experts on the country and working in the Kyrgyz Republic and critically, they continue to increase their investments and activities.
No Expropriation of Mining Assets
The Borubai is in an ideal location
- Kenadyr’s Borburai gold project is adjacent to a historic mining community. It is at only 1700 meters elevation, and has no competing land uses, or water issues – it’s only neighbours are Zijin’s TBL Mine and a mining town that needs the jobs created by the development. Kenadyr’s Borubai already has all the permits required for its planned exploration program and the development of the deposit. The Borubai is approximately 100 Km away or about 70 minutes driving by paved dual highway from Bishkek and has low cost (3¢ Kwh) electric power available to it.
Kenadyr has an expert team of mine developers with considerable local and government knowledge.
Gold Mining in the Kyrgyz Republic
The Tien Shan gold belt bisects the Kyrgyz Republic, it is among the world’s richest – hosting some of the world’s largest mines including Muruntau (170 m oz gold), Almalyk (+80 m oz gold eq.) and Kumtor (18 m oz).
- Centerra Gold – Kumtor: 8.5 m oz @ 3 g/t remaining (+ 5.2 m oz and an inferred 1.9 m oz underground @11 g/t.
- Chaarat Gold – Chaarat Mine: 6.5 m oz/Au @ 4 g/t. Feasibility underway.
- Tenrgi Resources – Taldy-Bulak: 6.7 mm oz/Au @ 0.51 g/t, 1.67 mm pounds Cu. Feasibility planned. Andash 1.2 m oz/Au and 170 m lb Cu @1.07 gram Au and 0.4% Cu.
- Highland Gold – Unkurtas: 3.0 m oz average grade of 1.8 g/t. Engineering for open pit.
- ZijJin (China Gold) – Taldybulak: . 3.5 m oz 6.2 g/t Au. TBL 60%. In production.
- China Shen Zhou – Kuru Tegerek: 3.1 mm oz/Au 0.5 g/t. Also contains copper, molybdenum and rhenium.