In Kyrgyzstan, there is a growing need to grant special status to the mining sector and geology. 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 of the Kyrgyz Republic and the Chairman of the State Committee for National Security:
“Dear Sadyr Nurgozhoevich!
Dear Kamchybek Kydyrshaevich!
Recently, the state has made significant progress in the mining and metallurgical industry. According to official data, over 42 billion soms have been received in the state budget from this sector in the first nine months of this year, and it is projected that by the end of the year this amount will increase to 50 billion soms. These are impressive figures. Some companies in the mining and metallurgical sectors not only do not receive subsidies from the government but also contribute significant amounts to the budget, which is a substantial achievement. The mining sector can rightfully be considered one of the locomotives of our economy.
Of course, work is also being done in the legal field. Licenses from some companies that violated the laws have been revoked and returned to the state, ensuring the influx of tens and hundreds of millions of soms into the budget. This indicates that we are moving in the right direction.
However, many issues remain unresolved. If we can discuss and address them in a timely manner, it will ensure even greater growth and success for the sector. Our association has repeatedly sent requests regarding these issues.
For example, in February 2021, a meeting was held with the President, where the problems of the mining sector were discussed. At that meeting, our association presented its proposals. Today, it is again necessary to return to a number of issues.
We believe that a permanent working group should be established in the sector, consisting of experienced specialists, engineers, and scientists, which would significantly accelerate the development of the mining sector.
Our organization employs veterans who are now almost 90 years old, and many are over 60. We ask and strive to direct their knowledge and experience for the benefit of our state.
Therefore, we strongly propose to adopt a special state program or resolution to support the mining industry. Such a document would serve as the foundation for the strategic development of the sector in the future.
The development of a concept for the mining sector should include general approaches to the exploitation of all deposits — gold, iron, coal, oil, and gas — and strategies for their development. We are sorely lacking such a document at the level of our state. It should also be noted that the creation of a "Mining Code" has been discussed for three years, but we believe it would be more appropriate to adopt a "Code on Subsoil".
We are ready to participate in the creation of a working apparatus and provide assistance.
The ministry is currently considering directions in ecology, natural resources, and technical supervision, but the problems of the mining sector and geology remain in the shadows. For the past two years, primarily issues of ecology and climate have been discussed, while the development of the mining sector has gone unnoticed. We would like special events to be held based on our proposals.
Previously, under Minister Melis Turganbaev, meetings were held with leaders and specialists, where the problems of the sector and the required assistance were discussed. However, such meetings have ceased. Therefore, as we have already mentioned, it is necessary to change the management structure. The mining and geological sectors should be separated from the ministry and a separate body created, possibly in the form of an agency. Last year, Kyrgyzstan produced only 27 tons of gold, while Uzbekistan produced 129 tons, and Kazakhstan 87 tons. Previously, Kazakhstan produced about 30 tons. Uzbekistan has significantly increased its attention to the mining sector, elevating its management to the level of a ministry. If we were to create a similar management structure, it would open new horizons for development.
Also among the raised issues is the necessity of creating independent organizations for the processing of coal, gas, and oil with appropriate working conditions.
For example, "Kyrgyzkomur" currently has only about 20 licenses, which is just 5% of the total number. The remaining licenses are held by private companies. Therefore, state policy should aim at creating a unified management system so that licenses are controlled from a single center.
"Kyrgyzaltyn" also has only 15–20 licenses, while the total number of gold mining licenses in the country exceeds 400. These figures indicate the need to consolidate these sectors and establish a unified strategic policy.
A similar situation is observed in the energy sector, particularly in the areas of coal, oil, and gas. Currently, we purchase most of our oil and gas from neighboring countries such as Kazakhstan and Russia. However, Kyrgyzstan also has certain reserves of oil and gas, and the development of this sector is extremely important for the future of the country.
We believe that we have oil fields that can provide for our country. If we direct funds and attention to their development, it will be a significant achievement. According to our estimates, there are more than 1 billion tons of crude oil underground, and if we could extract at least 3 million tons annually and refine 1.5 million tons, we would fully supply the country with oil. If "Kyrgyzneftgaz" is granted the authority to control licenses and contributes to the development of the concept, it will create opportunities for supplying the country with oil and gas.
The deposits are located in areas that are under the control of local authorities. In each region, district, and village council, it is necessary to be aware of the presence of deposits in their territory and develop appropriate business plans to determine what revenues can be obtained. Conflicts sometimes arise between companies and local authorities, so it is important to develop documents that clearly define what revenues go to the state and what social packages will be provided to the local population.
The next issue is the scientific support for the development of deposits. Previously, there were separate institutes under the Academy of Sciences, including the Institute of Mining Metallurgy, which is now under the Technical University. Given the current situation, it is necessary to create an independent center that will work together with enterprises in the mining sector and focus on training personnel.
Finally, there is the issue of personnel. If qualified specialists work in the mining sector, it will significantly improve the situation. We notice that opinions on this issue often differ. For example, when a person from the prosecutor's office came to the "Kyrgyzkomur" enterprise, he had no special training and could not offer justified solutions, which slowed down the process. However, now a qualified specialist has taken his place, and work has progressed. For instance, when the Kumtor mine was transferred under the control of Kyrgyzstan, there were problems with cracks; if that issue had not been resolved at the time, we could have extracted only 7 tons of gold instead of 14.5 tons. Specialists from our association made a professional proposal, and the problem was resolved.
Today, thanks to the correct decisions of our state, state enterprises "Kyrgyzkomur", "Kyrgyzaltyn", and "Kyrgyzneftgaz", which previously had no access to deposits, are now receiving licenses and conducting the necessary work. If changes are made to the legal framework, even more issues can be resolved. State enterprises receive licenses for deposits by decision of the Cabinet of Ministers — this is a correct step. But there are also other possible paths. For example, competitions can be held for state deposits, which would allow for the collection of starting amounts — tens and hundreds of millions of soms in the budget, and the winning company could be granted a 30% stake in state enterprises, which would be beneficial. The development of such an initiative is needed. It is also proposed to review the provisions on geological reserves and make changes to the State Committee on Geology. Resources at Kumtor and other deposits remain insufficiently accounted for, and we will also offer our ideas on this issue. If all proposed measures are implemented, the mining and geological sectors will become the main sources of sustainable development for the state, creating new jobs and increasing the budget.
Our association is open to cooperation with state bodies and is ready to share experience and proposals.”
