Kyrgyzstan is poised for a significant transformation in its mining industry, with plans to issue licenses for the extraction of critical raw materials (CRMs)—a shift that would have seemed unlikely just five years ago. This change follows substantial political reforms under President Sadyr Japarov, who has been actively seeking new economic revenue streams since his election in late 2020. Historically, Kyrgyzstan has not boasted the natural gas and oil reserves found in many Central Asian nations; instead, it has relied heavily on its mining sector, particularly the Kumtor gold mine, a vital component of the economy.
The Kumtor mine, located in the mountains near Lake Issyk-Kul, was originally estimated to contain around 514 tons of gold. Despite its economic importance, the mine has been fraught with controversy, including severe environmental degradation and a significant cyanide spill in 1998 that adversely affected local communities and tourism.
Public sentiment towards mining has soured in recent years, particularly following the 2019 Kyzyl-Ompol uranium mining controversy, which saw nearly 30,000 citizens petition against the project. This backlash led to a moratorium on uranium and thorium mining, reflecting widespread concerns over environmental safety and public health.
However, the global landscape is shifting. The European Commission has highlighted the critical role of CRMs in modern economies, noting their significance in various technologies and everyday products. As countries work to transition away from fossil fuels and enhance energy security through nuclear power, the demand for CRMs is rising. In response, President Japarov’s administration is focusing on the exploration and extraction of Kyrgyzstan’s CRM resources, promoting Kyzyl-Ompol as a potential economic boon while assuring local communities that they will benefit from these initiatives.
In June 2023, Kyrgyzstan’s parliament lifted the moratorium on uranium mining, paving the way for renewed exploration across the country. Legislative amendments concerning subsoil use and biosphere territories are facilitating the expedited development of these resources.
Despite its mining sector’s rich potential, Kyrgyzstan faces considerable challenges in attracting foreign investment. The contentious history of foreign mining operations, particularly the ousting of Centerra from the Kumtor project, looms large over future collaborations. Nevertheless, the Kyrgyz government is keen to foster partnerships with both domestic and international investors.
Recent developments, including the initiation of work at Kyzyl-Ompol, signal a strong commitment to advancing mining operations. However, the sector is not without risks, as recent environmental incidents have reignited public concerns. For instance, a Chinese coal mining operation reportedly destroyed parts of a glacier in southeastern Kyrgyzstan, and a truck carrying radioactive waste overturned earlier this year, reminiscent of the Kumtor cyanide spill.
The Kyrgyz government is actively engaging with foreign firms, including discussions with Zhicun Lithium Industry Group regarding lithium mining opportunities. As the nation embarks on this new chapter, it remains to be seen whether it will achieve sustainable development or repeat the mistakes of its past.
