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Kyrgyzstan is on the verge of a transformative shift in its mining industry, announcing plans to issue licenses for the extraction of critical raw materials (CRMs)—a strategy that seemed improbable just five years ago. This evolution follows extensive political reforms under President Sady Japarov, who has been pursuing new revenue streams since his election in late 2020.

Traditionally, Kyrgyzstan has depended on mining, especially the Kumtor gold mine, due to a lack of natural gas and oil reserves. The Kumtor mine, near Lake Issyk-Kul, was initially estimated to hold 514 tons of gold but has faced controversies over environmental issues and a cyanide spill in 1998, impacting local communities and tourism.

Public disapproval of mining activities has intensified, particularly after the 2019 Kyzyl-Ompol uranium mining controversy where nearly 30,000 citizens protested, leading to a moratorium on uranium and thorium mining due to environmental and health concerns. However, as the demand for CRMs increases globally—driven by the European Commission’s call for energy transition and secure CRM supplies—Kyrgyzstan is revisiting its mining prospects.

In June 2024, Kyrgyzstan’s parliament lifted the uranium mining moratorium, encouraging new exploration nationwide. Amendments in subsoil use and biosphere territories regulations aim to streamline CRM resource development.

Kyrgyzstan, however, faces obstacles in attracting foreign investment due to a fraught history with international mining companies, notably the Centerra dispute over Kumtor. Yet the government is eager to attract both domestic and international partners, with recent talks involving the Zhicun Lithium Industry Group for lithium mining.

While mining activities, such as the start of operations at Kyzyl-Ompol, underscore the government’s commitment, environmental concerns persist. Incidents like a glacier damaged by a Chinese coal mining company and a radioactive waste spill have renewed public apprehensions, evoking memories of past controversies. Kyrgyzstan’s shift toward CRM mining raises questions about sustainable development, with hopes to avoid previous missteps and create long-term economic benefits for the country.

 

Source and Credit: miningeurope.news

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