By Olga Dzyubenko
TALDY-BULAK GORGE, Kyrgyzstan, July 29 (Reuters) -
K yrgyzstan on Wednesday opened a gold mine at the Taldy-Bulak
Levoberezhny deposit, a joint venture with China and so far the
second "world-class" gold project with foreign investors.
The field, discovered by Soviet geologists, lies in the
Taldy-Bulak Gorge in the Tien Shan mountains some 120 km (75
miles) east of the capital Bishkek and holds an estimated 65
tonnes of gold. Continued exploration is expected to add up to
20 tonnes to the reserves, Kyrgyz geologists say.
Kyrgyzstan, a mainly Muslim nation in Central Asia with a
population of 5.5 million, remains volatile after popular
revolts deposed two presidents in 2005 and 2010. It sorely needs
foreign investment to alleviate widespread poverty.
"This is a significant event for Kyrgyzstan's economy, but
this is just the beginning," Kyrgyz Prime Minister Temir Sariyev
said at the opening ceremony.
"We will continue this work in the future and will launch a
number of (mining) combines. Next month the Bozymchak deposit
will be launched at full capacity," he said in a reference to a
project implemented by Kazakh firm Kazakhmys Gold Kyrgyzstan.
Taldy-Bulak's underground mine will be run by Altynken, a
venture in which Kyrgyz state gold company Kyrgyzaltyn holds 40
percent and Superb Pacific Limited Company, a wholly owned
subsidiary of China's Zijin Mining Group Co. Ltd 601899.SS ,
another 60 percent.
Altynken, which holds a 19-year licence, has so far invested
$246 million. It aims to produce 1 tonne of gold by the end of
this year. Annual output is set to average 3.7 tonnes of gold in
several years.
Taldy-Bulak will be profitable as long as gold price does
not fall below $1,080 per ounce, Kyrgyzaltyn Board Chairman
Almaz Alimbekov told reporters at the site. As of 0840 GMT on
Wednesday, spot gold XAU= traded at $1,098 per ounce.
This is the second major gold project launched in the
country after the collapse of the Soviet Union in 1991.
In 1997, Kyrgyzstan started joint production with Canada's
Centerra Gold Inc . CG.TO at Kumtor, its largest gold deposit.
In the past two years, the two sides have been locked in
uneasy negotiations as Kyrgyzstan, which owns a third in
Centerra, seeks to form a 50-50 joint venture to run Kumtor,
which is the core asset of the Toronto-listed investor.
(Writing by Dmitry Solovyov Editing by Jeremy Gaunt.)