Kumtor Gold Company has begun underground gold mining at the Kumtor deposit in Kyrgyzstan, one of Central Asia’s most significant gold reserves.
The deposit is estimated to hold 147 tonnes (t) of gold reserves and is set to operate for 17 years.
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The underground gold mining initiative aims to eliminate unnecessary removal of waste rock and protect the surrounding environment and glaciers.
Open-pit operations from the previously established pits will continue, along with the underground mining activities.
Situated in eastern Kyrgyzstan near the Chinese border, the Kumtor mine was initially developed by Canada’s Centerra Gold, with mining operations starting in 1997, according to a Reuters report.
In 2021, Kyrgyz President Sadyr Japarov announced the nationalisation of the mine, which transitioned the operation from Centerra Gold to the Kyrgyz Government.
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By GlobalDataThe nationalisation of Kumtor has proven lucrative for Kyrgyzstan, bringing in approximately $3.4bn (Kgs297.06bn) since the takeover.
In April 2022, Centerra Gold and Kyrgyzstan reached an out-of-court settlement, wherein Centerra agreed to relinquish control of the Kumtor mine to the Kyrgyz Government and dispose of its investments in the country.
Kyrgyzaltyn, the state-owned gold mining company with a significant share in Centerra Gold, had also consented to transfer its estimated 26% stake, equating to 77.4 million common shares of Centerra, for cancellation.
President Japarov’s press service announced that around 1,600m of tunnels had been constructed at Kumtor to date.
The mine’s newly discovered geological reserves have now been recorded on the state’s balance sheet. The monetary value of the reserves has not been disclosed.
Additionally, the Kyrgyz Government plans to process the Kumtor tailings pond, which is believed to contain more than 100t of gold.
