GeoExpertProgekt, Bishkek, Kyrgyzstan

Kurmanaliev K. Z., Mining Engineer-Geologist, grfgeology@gmail.com

Turiba University, Riga, Latvia

Jelisejevs A., PhD, Candidate of Juridical Sciences

Gorny kluch, Bishkek, Kyrgyzstan

Korobovsky N. V., Chairman of the Board

LLC “Udokan copper”, Udokan, Russia

Alekseeva O., PhD

The mining industry in Kyrgyzstan is facing stagnation. There are 70 explored gold ore deposits in Kyrgyzstan with total reserves and resources above 68.3 million ounces, still no more than 10 that are under operations or being operated. According to legislation the investor can become a license holder, that can be withdrawn quite easily since the license regime does not determine the conditions of ownership for the subsoil product, No regulation exists! Thus Kumtor gold mine project had been taken over after 25 years of holding the license and successful operation, No matter that Kumtor has been “protected” via signing of concession and investment agreements. So far, all the parties in mining industry of Kyrgyzstan are in an environment mistrust led by institutional misconduct. Thus, investors are forced to ensure political risks by increasing the incoming cash flows in the shortest possible time, understanding that political situation is likely to be changed, No matter what changes are, institution of resource nationalism has been created as default mechanism in general. Legally rights of the owner of resources, are limited by red tape tools management of administrative government agencies, while there are no normative procedures regulating subsoil use.

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