Addendum 2
Approved:
By the Order of the State Agency on
Geology and Mineral Resources under the
Government of the Kyrgyz Republic.
No _____ dated by «___» __________2014
Terms of auction for granting the right of using resources of Aldyiar (Aldyjar) Coal
Deposit
The Organizer of the Auction in accordance with the Resolution of the Government of the
Kyrgyz Republic dated 14 December 2012 No 834: The State Agency on Geology and Mineral
Resources under the Government of the Kyrgyz Republic, an authorized state body.
1. The subject of the Auction: The right of using resources for purpose of geological
exploration at the Aldyiar Coal Deposit in accordance with the Law of the Kyrgyz Republic “On
Subsurface”.
The Deposit the right of using which is put up for the auction: the Aldyiar Coal Deposit.
1.2. Type of the Auction: open.
1.3. Geographical location of the Deposit:
The Aldyiar Coal Deposit is located in the northern spurs of the Alai mountain ridge.
Administratively Deposit area is situated at the junction of Ozgon, Kara-Kulja and Alai districts
of Osh region. The Deposit is located 50 km to the south-east from Kurshab Village.
Kara-Su Station is the closest railway station which is 85 km away from the Deposit.
1.4.Information about infrastructure peculiarities:
The Deposit borders with the Aldyiar mountains in the west, meridian of Ak-Terek
triangulation station in the east, southern sides of the Kyzyl-Beles mountains in the north, and
northern sides of the Ala-Dobe mountains in the south.
Absolute elevations of the Deposit surface are located at the height of 2500-3050m above
sea level. At the area put up for the auction the main hydrographic element is the Iri-Su River
which flows at the junctions of the two watershed files - Aldyjar and Ala-Dobe. The Iri-Su and
its large tributaries are fed mainly from springs. Except for the Iri-Su and its tributaries the area
of the Deposit is covered with plenty of springs. Water from these springs is suitable for
drinking and is characterized as tasty. Discharge of the Iri-Su River in September was 0.1m3 per
second which was measured at the section located after the Iri-Su River merges with its left
tributary – the Chaerdy Spring. In spring and summer water discharge of the Iri-Su River is
significantly larger due to thaw and rain water. Water discharge of two springs located at the
north-western side of the Aldyjar mountains pinching out from the Paleozoic deposits is around
20 liters per second. At the north-western side of Aldyjar Mountain there are 3 groups of springs
with water discharge of up to 10-15 liters per second in each group.
The climate of the Deposit is highland and differs a lot from climatic conditions of the
valleys for which Ozgon Weather Station has weather records for. According to the data of the
Weather Station maximum temperature for the valley and piedmont areas of the region is
recorded in July and reaches +35 - +360 C while the lowest temperature in winter is recorded in
January and reaches - 220 C. In the territory of the Deposit the lowest winter temperature can
possibly drop to -300 C.
The largest amount of precipitation is recorded from September to June and reaches
430mm. Winds at the Deposit blow mainly in the eastern direction.
Tyuzbel Village is the closest settlement to the Deposit and it is connected to Kyrshab
Village with a gravel road. The distance from Kurshab Village to Tuzbel Village is 25 km. There
is a gravel road 15m long from Tyuzbel Village to the Deposit which can be suitable for vehicles
only in summer. Kurshab Village is connected to Osh City, the center of the region, Karasu
Railway Station and Ozgon Town with an asphalt road.
№ points
1
2
3
4
Х
13362500,0
13366000,0
13369000,0
13368500,0
У
4487000,0
4487330,0
4484000,0
4482000,0
№ points
Х
5
13367000,0
6
13366430,0
7
13362535,0
У
4482000,0
4484000,0
4486300,0
Except for the licensed area (License No.2267CE) which is located inside the area of the
auction the area of the plot put up for auction is (1554.4-1.3) = 1553.1 hectares.
2. Geological characteristic of the region of the licensed area
The first data about the Deposit were received in 1934 from Kurshab and Gulcha
industrial crews which carried out artisanal mining using shallow galleries. In 1935
V.A.Zakharevich visited the Deposit and examined its surface. V.A.Zakharevich described
Jurassic sediments in the basin of the Iri-Su River where according to their lithological features
they were divided into 6 series and in 2 of these series coal strata were revealed. In the course of
the work performed in 1935 three galleries and several ditches were driven at the Deposit; a
geological map was made in scale of 1:10000 (17sq.km); and the All-Union Commission on
Natural Reserves calculated and approved the coal reserves: for С1 category - 12005 thousand
tons, for С2 category - 135000 thousand tons.
The Deposit was mined using an artisanal method for a few years. In 1941 in the course
of making a geological map, K-43-B sheet, in scale of 1:500000 A.V.Adelung attributed the coal
sediments of the Aldyjar Deposit to the Lower Jurassic period. In 1949 N.V.Merkhalev explored
petrographic composition of coals at the Deposit. In 1949-54 A.M.Akramkhodjaev performed
petrographic and lithological and stratigraphic exploration of the Mesozoic sediments in the
Aldyjar area. Based on terrigenous components he revealed a number of series in the chalk
stratum. In 1953-54 “Sredazuglegeologia” Trust carried out exploration and survey at the
Deposit in scale of 1:10000 (Goncharenko A.I. and others, 1955). During these operations and
for the purpose of determination of coal-bearing capacity of the Jurassic sediments and tracking
of coal strata 370 running meters of galleries with cuttings and drifts, 462 running meters of pits,
and 2290m3 of ditches were driven, and geological survey of around 80 sq.km was carried out.
Based on the results of this work coal reserves were recalculated and amounted: on С1
category - 190000 thousand tons, on С2 category -125000 thousand tons.
In 1964-65 Gulchinskaya part of Search-Field party Group of the South-Kirgiz Geological
Expedition (Goryanov V.B. and others) explored geological structure and mineral resources of
the Kurshab-Buiga interfluve. At the geological map in scale of 1:50000 made in the course of
these operations the Jurassic sediments were divided into 6 series (as in V.A.Zakharevich’s
work) but each of these series was assigned a separate index.
In 1974-75 a preliminary survey was performed at the Deposit by the Osh Project
Implementation Unit GEC of the South-Kirgiz Geological Expedition (Solpuev T.S., 1976) by
driving ditches, pits, galleries and wells.
Scope of the main types of geological exploration operations performed in 1974-75 is
shown in Table 1.
Table 1.
Type of operations
Prospecting traverses
ditches
pits
Short galleries
Drilling
Unit of measurement
Running km
m3
Running meter
Running meter
Running meter
Scope
101
1595
70.8
99
5985
In 1992 without performance of any field work and based on data of a preliminary survey
a section in the Iri-Su was allotted for open mining by a small enterprise.
Reserves of the Iri-Su section were approved in the Territorial Committee for Natural Reserves,
Protocol No.405 dated August 13, 1992.
4 strata were segregated in a section of Jurassic sediments of the Deposit. The strata from
the bottom upwards were assigned ordinal numbers from first to fourth. The strata are correlated
with lower and upper slate series divided by sediments of the series of mill conglomerate.
Thickness of these mill conglomerates in some areas is over 100 meters.
The first coal stratum is found in the lower slate series (J11). In the upper slate series (J21) three
coal strata (strata No.2, 3, 4) are segregated.
Among the segregated four strata the first stratum is the most important. Strata 2 and 3
are thick enough (over 1.0m) in separate intersections. And stratum 4 is not thick enough for
mining in any of the areas of its occurrence.
The first stratum can be correlated with a “thick” stratum while strata 2 and 3 can be
correlated with strata 5 and 6 of the Kok-Jangak Deposit.
Segregation of the first stratum in the section of the Jurassic sediments of the Deposit is not
difficult because it can be tracked along the surface and separated from strata of the upper slate
series with thick sediments of series of mill conglomerates.
The main features for segregation of the coal strata of the upper slate series are the
following: position of those in section and plan, thickness of the strata and rocks separating
those, composition of a stratum on course and descending, general structural position.
Table 2 below demonstrates thickness and composition of coal strata of the Deposit. The
numerator indicates the thickness range; the denominator indicates the average value; and a
number of intersections of the strata is shown in brackets.
Table 2
Stratum
number
1
Stratum 1
Stratum 2
Stratum 3
Stratum 4
General normal
thickness, m
2
1.03- 18.07
9.54(27)
0.14-6.83
3.33(21)
0.39-8.53
3.07(18)
0.19-2.57
1.38(7)
Total normal
Quantity of
thickness of plies,
m
plies
3
0.10- 9.03
4.40(27)
0.14-3.34
1.53(21)
0.18-2.34
1.06(18)
0.19-1.56
0.64(7)
4
1-16
6(27)
1-6
3(21)
1-8
3(18)
1-7
3(7)
Thickness of
separate plies, m
Thickness used for
calculation of
reserves,m
5
0.10-4.96
6
0.10-7.65
3.08(27)
0.14-2.83
0.97(21)
0.09-1.28
0.62(18)
No intersection of
work strata
0.07-2.34
0.10-1.28
0.04-1.56
Macroscopically coal of the Deposit is of black color, more porous in the area of
corrosion and harder at depth with uneven and shell-like fracture. Most of the coal is resinous
and lustrous, with plenty of streaks. Streakiness is formed due to alteration of lustrous and semigloss coal versions. Mechanical stability of the coal becomes more evident from the depth of 5.0.
from the surface.
During the preliminary exploration of 1974-75 study of petrographic and element
composition, plastometric analysis, semi-coking and coking properties were not performed.
Petrographic description was made during a geological survey in scale of 1:10000 in 1953-54;
according to these petrographic descriptions 2 types of coal were found: glance coal with plenty
of streaks and inclusions of clarain-durain or durain, lens of fusian and vitrain; and clarain
uneven striated type.
According to samples taken from galleries No.51 and 52 using a cutting method volume
weight (actual density) of coal ranges from 1.32 to 1.34, and the average value is 1.33g/cm3.
Table 3 shows yield of grades of coal depending on the size of pieces.
Table 3
No.
Total
weight
of a
sample,
kg
Yield of coal categories in % from the total sample weight
large
(К)
50100mm
Hazeln
ut size
(0)
2550mm
1
529.4
3.18
8.01
2
3
1337.5
663.1
10.39
0.89
14.09
5.57
Total
КО
25100mm
Small
(М)
1325mm
Stratum 2
11.19
13.77
Stratum 1
22.48
23.41
6.46
16.46
Total
Flaxseed
coal
Total on
coal
КОМ
13100mm
Total on
Total
rock
0-13mm
24.96
66.49
91.54
8.46
100
47.89
22.92
44.0
64.30
91.89
87.22
8.11
12.78
100
100
3. Principal requirements for use of the subsoil target.
3.1. Principal requirements for use of the subsoil target are set forth in accordance with the
legislation of the Kyrgyz Republic in terms of the subsoil use and shall be included into the
license for subsoil use. The detailed requirements shall be specified in the course of License
registration as set in the License Attachment.
3.2. The main requirements for the use of the licensed area are as follows:
- Effecting of a license attachment for development of a development project at the license
area;
- submission, within the time specified in the license attachment, a development project at
the license area, having passed the expert evaluation in terms of industrial and environmental
safety as well as subsoil protection, along with a certificate for the right of temporary use of the
land for the subsoil use;
submission of semi-annual progress information regarding compliance with the license
attachment requirements before 15 July of the current year;
- submission of an annual report before 31 January of the new year, in a set form, approved
by the state body authorized for implementation of the governmental policy on Subsoil, with
attachment of an electronic copy;
- submission of a mining programme (plan) up to 31 January of each subsequent year;
- performing all the necessary types of geological prospecting works in strict compliance
with the project, which has passed the expert evaluation on industrial and environmental safety
and subsoil protection;
- development of an Action Plan to ensure the requirements of industrial safety at
operational sites, including prevention of accidents and mitigation of their consequences with
necessary justifications and calculations both at the site, and resulting from accidents at other
facilities in the area of the operational site. In the course of development of the action plan the
following hazards shall be considered: (mudflow accumulation areas, avalanche hazard, etc.),
risk factors, conditions for the occurrence of accidents and their scenarios, the number and
placement of operational personnel;
- Submission of a report on the results of geological studies with graphic materials and
laboratory results attached;
- performing the technical and biological reclamation in compliance with the project
concept, which has passed the expert evaluation on industrial and environmental safety and
subsoil protection.
Failure to comply with the principal requirements to the use of the subsoil target by the
winning bidder entails penalties imposed at a rate of 0.1 percent per day of the paid value of the
subsoil target for each day of delay in fulfilment of commitments undertaken.
Final sizes of geological and mining allotments may be subjected to adjustments following
the design results. In case of changes to the contour and size of the allotment towards decreasing
or increasing, providing the adjacent area is not occupied, the license attachment shall be agreed
by the licensor without any additional conditions. Whether the adjacent area is occupied,
adjustments may be implemented only upon written consent of the owner of the adjacent
licensed area and only upon agreement of a new license attachment with the said owner.
4. Time and location of the Auction:
The auction shall be held on August 14, 2015 at the building of the Korul aiyl district,
Toguz-Bulak village, Alai region Osh oblast
The Auction participants’ registration: from 11:00 a.m. to 11:50 a.m. The Auction shall
start at 12:00.
5. Deadline for applications for the Auction: Applications shall be accepted from 10 July
2015 to 10 August 2015 inclusive. Applications shall be submitted on week days from 9:00 a.m.
to 3:00 p.m. to the Licensing Department of the State Agency on Geology and Mineral
Resources under the Government of the Kyrgyz Republic, room # 225
6. Location and time for reviewing the terms and conditions of the Auction:
Licensing Department of the State Agency on Geology and Mineral Resources under the
Government of the Kyrgyz Republic, room #217, daily from 9:00 to 18:00.
7. In order to participate in the Auction, the bidder shall submit an application to the
Auction Organisers either in person, or by proxy, before 3:00 p.m. on June 30, 2015, in two
copies, in the form set forth by the Auction Organizer and posted on the official website of the
Organizer of the Auction: www.geology.kg.
Applications filed by mail shall not be accepted.
Application for participation in the Auction for the right to use subsoil targets should be
filled in electronically in the State and/or Official languages, and printed out via electronic
printers.
The following shall be attached to the application form:
- Copies of the founding documents and certificates of incorporation of a legal entity;
- copy of state registration certificate of a citizen as a private entrepreneur;
- a copy of appointment of the executive body of the Company;
- a Power of attorney to the Company representative, executed in accordance with the
legislation of the Kyrgyz Republic, should the said person shall act through a representative;
- a documented proof of payment of the guarantee fee;
- a document confirming payment of the fee for participation in the Auction;
- foreign legal entity shall additionally provide authorized extract from state register or any
other document verifying its status as acting legal entity under the legislation of the respective
country;
- companies registered in the Kyrgyz Republic, including foreign companies' branches
registered in the Kyrgyz Republic, shall additionally submit a certificate from the tax authority
justifying absence of outstanding tax payable.
Submission of an application shall be considered as consent of the applicant with all the
terms of the Auction.
Certificates and documents formalised by the applicant, shall be signed by an authorized
person and stamped by the applicant.
The copies of the documents shall be submitted duly certified, in compliance with the
established procedure.
The documents of incorporation and other documents submitted by a foreign entity should
be apostillised and submitted with a notarised translation into the State and/or Official languages.
All the above documents shall be submitted to the Organizer of the Auction along with the
application.
Application materials received after the deadline for submission of applications shall not be
registered and shall be returned to the applicant.
8. The Auction winner, who signed the Report on the results of the Auction, shall pay all
the fees stipulated by the legislation, to the budget of the Kyrgyz Republic.
9. The fee for participation in the Auction in the amount of KGS 10,000 (ten thousand),
shall be paid by the applicant to the special account of the Organizer of the Auction:
The State Agency on Geology and Mineral Resources under the Government of the Kyrgyz
Republic
Beneficiary: Pervomay ROK (District Branch of Treasury)
Beneficiary`s Bank: OJSC “Ayyl Bank” in Bishkek city
Settlement/account 1350108011368456
Personal/account 4402012100002662
BIC (MFO) 135001
TIN 03010199610110
OKPO 05804223
STS: 004 Pervomay rayon (district)
Payment code: 14238900 in the bank
Details of payment The State Geology Agency; payment for participation or the guarantee
fee.
The fee for participation in the Auction is not refundable, except cancellation of the
Auction, or whether the applicant withdraws its application prior to the Auction, or will not be
admitted for participation in the Auction. Whether the fee shall be refunded, it is payable to the
applicant within 30 banking days.
10. A Guarantee fee in the amount of USD 77,650 (seventy seven thousand six hundred and
fifty) dollars shall be paid by the applicant in the national currency at the rate of the National
Bank of the Kyrgyz Republic on the date of transfer or payment of the guarantee fee to the
special account of the Auction Organizer, specified in Clause 10 herein.
The Guarantee fee shall be refunded to the applicant / participant within 30 banking days
from the date of signing of the final minutes of the Auction Committee meeting.
A bidder who refused to sign the Auction Report as the winner of the Auction, shall be
withdrawn from the participants of the Auction. The guarantee fee contributed such bidder is not
refundable.
11. The starting price of the subject of the Auction is USD 77,650 (seventy seven thousand six
hundred and fifty) dollars.
12. Auction increment is set at USD 7,765 (seven thousand sixty five) dollars; at the maximum
amount of 77,650 (seventy seven thousand six hundred and fifty) dollars.
13. The Auction shall be declared cancelled in the following cases:
1) in the absence of applications for participation in the Auction;
2) whether only one application is filed for participation in the Auction;
3) whether only one participant or no participant arrived for participation in the Auction;
4) All the applicants are not admitted for participation in the Auction;
5) No bidder offered a price higher than the starting price.
14. The bidder who offered the highest price for the target shall be declared the Auction winner.
On the day of the auction, the winner of the auction shall sign the Auction Report. Refusal of the
winner of the auction to confirm its results on the same day (i.e. refusal to sign the Auction
Report) or failure to pay the proposed price for the right to use subsoil within five banking days
following signing of the Auction Report shall be deemed a waiver of the right to use subsoil
target; the guarantee fee is not refundable.
Scheme
The locations of existing licensed areas and the areas to be auctioned on the coal deposit Aldiyar