Kyrgyzstan launches largest gold plant in Central Asia

Musa Bazhaev, a well-known Russian businessman. Photo: KP 40

One of the largest gold plants in Central Asian region was officially launched in Kyrgyzstan on the basis of a local Jerui deposit, according to recent statements, made by some senior Kyrgyz state officials and some local media reports.

 

The volume of investments in the project will amount to more than US$600 million.

 

Most of the funds for the project were provided by Alliance Altyn company – a Russian enterprise, which is owned by a local millionaire Musa Bazhaev.

 

This year the plant will produce about 3 tonnes of gold.

 

 

The Jerui gold deposit in the Talas region of Kyrgyzstan was discovered by geologists of the North Kirghiz expedition in 1968-1969. However, only 17 years later, design and survey work was carried out on it and a feasibility study was developed. The Soviet government planned to begin construction of a gold plant on the basis of Jerui, however due to the collapse of the USSR, the entire project was never implemented at that time.

 

Over the 30 years of independence of Kyrgyzstan, several companies, including some global majors made several attempts to start the development of the field, however for various reasons, it was delayed due to the presence of a state share in it. Only in 2015, Jerui was sold by the state at an auction for US$100 million to the Russian company Vostok Geoldobycha.

 

 

The design capacity of the plant is about 1.3 million tons of ore per year. According to preliminary calculations, the reserves of gold ore at the Jerui deposit are estimated at 21 million tons, and gold reserves at 100 tons. The mine can also produce approximately 30 tons of silver.

 

 

By: Eugen Gerden