In Kyrgyzstan, there has arisen a need to separate the mining sector and geology into a distinct direction. This was stated by Duishenbek Kamchybekov, the chairman of the Association of Miners and Geologists of the Kyrgyz Republic, in his address to the president and the head of the State Committee for National Security.
“Dear Sadyr Nurgoyevich, dear Kamchybek Kydyrshaevich,
The state is actively working on the development of the mining and metallurgical industry. According to data provided for the first nine months of this year, over 42 billion soms have been received in the state budget. It is expected that by the end of the year this figure will reach 50 billion soms. This is an impressive result. Some companies in this sector not only do not receive subsidies from the state but also actively contribute to the budget. This is an important achievement, as the mining sector acts as one of the locomotives of our economy.
Work is also being carried out within the legal framework: licenses of companies that violated laws have been revoked and returned to the state, bringing millions of soms into the budget. This confirms that the process is moving in the right direction.
However, there are still unresolved issues. If they are addressed in a timely manner, the sector can achieve even greater success. The Association has repeatedly addressed these issues through letters and oral statements.
Thus, in February 2021, a meeting was held with the President, where current problems of the mining sector were discussed, and appropriate solutions were proposed. It is important to continue discussing these issues and to make specific proposals.
We believe that the establishment of a permanent working group consisting of experienced specialists and scientists would be a significant contribution to the development of the mining sector.
Our association includes veterans over 60 years of age, and we hope to utilize their experience and knowledge for the benefit of the state.
The key proposal is to develop a special state program that will serve as a foundation for the strategic development of the mining sector.
The concept that should be developed must cover all deposits — gold, iron, coal, oil, and gas — and describe the methods of their development. Unfortunately, there is currently no such program document at the state level. It should also be noted that discussions on the “Mining Code” have been ongoing for three years, and in our opinion, it would be more appropriate to adopt a “Code on Subsoil.”
We are ready to participate in the creation of a working group and to provide assistance.
Currently, the ministry has directions related to ecology, natural resources, and technical supervision; however, issues related to the mining sector and geology do not receive due attention. All problems are concentrated in one ministry, and over the past two years, we have mainly heard about issues related to ecology and climate. The development of the mining sector and geology remains in the background. We would like special events to be held regarding our proposals.
Previously, under Minister Melis Turganbaev, regular meetings were held with the participation of specialists, where problems and ways to solve them were discussed. However, these meetings have ceased, highlighting the need for changes in the management structure. We believe that the mining and geological sectors should be separated into a distinct body, possibly in the form of an agency. For example, last year, Kyrgyzstan produced only 27 tons of gold, while Uzbekistan produced 129 tons, and Kazakhstan produced 87 tons. Uzbekistan significantly strengthened its mining sector by creating a ministry, which could also help us in our development.
Furthermore, it is necessary to create independent institutions for the processing of coal, gas, and oil with appropriate working conditions.
At present, “Kyrgyzkomur” owns only about 20 licenses, which is only 5% of the total. The remaining licenses are in private hands. State policy should aim to create a unified management system to control all licenses from one center.
The same applies to “Kyrgyzaltyn,” which controls only 15-20 licenses, while there are over 400 in the country. This clearly shows that it is necessary to consolidate these sectors and implement a unified strategic policy.
Problems are also observed in the energy sector, especially in coal, oil, and gas. To date, we mainly purchase these resources from neighbors — Kazakhstan and Russia, although there are oil and gas reserves in Kyrgyzstan. The development of this sector is crucial for the future of the country.
According to our estimates, we have oil fields that could ensure our country’s self-sufficiency. If investments and resources are directed towards their development, Kyrgyzstan can achieve significant progress. We estimate that there are over 1 billion tons of oil underground, and if we extract at least 3 million tons per year and process 1.5 million tons, this would fully supply the country. Provided that “Kyrgyzneftgaz” controls the licenses and participates in the development of the concept, we will have a chance to ensure the country’s oil and gas supply.
The deposits are located in areas under the control of local authorities. Each local government should be aware of the deposits in its territory and develop business plans for profit generation. This will help avoid conflicts between companies and local authorities. It is important to develop documents that clearly indicate what revenues go to the budget and what social packages are offered to the population.
Regarding scientific support for the development of deposits, there were previously special institutes under the Academy of Sciences, including the Institute of Mining Metallurgy, which is now subordinate to the Technical University. Given this, it is necessary to create an independent center that will cooperate with mining enterprises and focus on training personnel.
The issue of personnel also remains relevant. If qualified specialists work in the mining sector, the results will be better. We notice that disagreements often arise on this issue. For example, when a prosecutor's office employee came to “Kyrgyzkomur,” he did not have specialized education, which slowed down the process. However, after a qualified specialist was appointed, the work progressed faster. When the Kumtor mine was transferred to Kyrgyzstan's management, there were difficulties that were successfully resolved thanks to the professional recommendations of our association.
Today, thanks to the correct decisions of our state, state enterprises “Kyrgyzkomur,” “Kyrgyzaltyn,” and “Kyrgyzneftgaz” are gaining access to deposits and conducting active activities. Changes to the legal framework can help solve even more problems. For example, competitions can be held for state deposits, which would attract funds to the budget and ensure the participation of state enterprises in the project. It is also worth updating the regulations on geological reserves and making changes to the State Commission on Mineral Reserves, as the resources at Kumtor and other deposits are not fully accounted for. We are ready to provide our proposals for the implementation of the above initiatives, which will allow the mining and geological sectors to become the main sources of sustainable development for the country and the creation of new jobs.
Our association is ready for active cooperation with state bodies, offering our experience and proposals for further development.”
