Kyrgyzstan can lose $4 billion at Kumtor

Kyrgyzstan will lose $3.678 when transition from open-pit to underground gold mining at the Kumtor deposit takes place.

Strict adherence to the Law ‘About glaciers’ agreed by the Parliament of Kyrgyzstan will lead to the loss of $3.678 because of the transition from open-pit to underground gold mining at the Kumtor deposit. The experts think that further open-pit gold mining will gain $5 billion to Kyrgyzstan, and, with transition to underground mining, profit will not exceed $1.3 billion.

It’s necessary to invest $240 million into the transition to underground gold mining at Kumtor for closure of the carrier and construction of the new galleries. Kyrgyzstan will have to allocated $120 million from own reserves. Moreover, neither the mining tax will be charged nor the budget will get them in 2014-2017.