Report on Mining Industry in Kyrgyzstan and Opportunities for India February 2014 Prepared by The National Institute for Strategic Studies of the Kyrgyz Republic Contents Background …………………………………………………………………… 1. Mining Sector in the Economy of Kyrgyzstan ……………… 4 5 2. Mining Industry in Kyrgyzstan. Market Research ………………. 7 2.1 Mining Industry Market in Kyrgyzstan …………………………… 7 2.2. Mineral Development License Market …………………………… 10 2.3 Production and Reserves of Main Metals and Rare Earths in Kyrgyzstan 11 2.4 Territorial Distribution of Deposits ……………………………… 17 3. Regulatory Framework and Incentives for Joint Ventures in Mining 23 Industry 4. Core Indicators of Trade Relations between Kyrgyzstan and India………. 30 5. Kyrgyzstan’s Foreign Trade in the Mining Sector …………………………………..33 6. Investment Projects in the Mining Industry …………………………………………. 34 Reference …………………………………………………………………………………………………. 36 Background The mining history in Kyrgyzstan dates back to the early 20th century. During the Soviet era the Kyrgyz Republic was a leading producer of antimony, mercury, rare earth metals and uranium. Following independence and adoption of the first Law on Subsoil of the Kyrgyz Republic in 1992 the country was opened to private business, both local and foreign. The majority of the current exploration and production projects were initiated in late 1990s - early 2000s, following the adoption of the Second Law on Subsoil in 1997, the increase of world prices for minerals and substantial liberalization of the procedure for granting rights to conduct exploration and development of mineral deposits in the Kyrgyz Republic. Along with the Canadian company "Centerra" other companies from Australia, Great Britain, Russia, Kazakhstan, China and other countries have invested in the mining sector of the Republic. The mining sector consists of a number of industries engaged in the exploration and development of mineral deposits and primary treatment of the produced minerals, i.e. enrichment of ores. Given the conditions in Kyrgyzstan, the industries may be divided into the following groups: 1. 2. 3. 4. clay, 5. 6. Gold Hydrocarbon recourses (coal, oil) Ores (iron, rare earths, base metals, radioactive elements) Construction raw materials and non-metallic minerals (granite, marble, gypsum, etc.) Hydro mineral resources (water supply, mineral water) Prospecting and exploration. For complete Report, please write, with your company information to: <amb.bishkek@mea.gov.in>.