I wil be writing more short posts from now on. I don’t always have the time to expand on topics I think are worth sharing. So these will be just quick updates.
In the past months I came across two news items regarding Chinese companies developing gold mining in Central Asia (Kyrgyzstan and Tajikistan).
On June 12, Yantai Yuancheng Gold Co Ltd said they signed a strategic agreement with partners to increase investment in a gold mine project in Tajikistan, according to Reuters (this is the more extensive source text in Chinese). More details will follow.
On April 3, the China Gold Association published an article about cooperation between Zijin Mining Group and Kyrgyzaltyn in the Taldybulak Levoberezhny Gold Mine in Kyrgyzstan. From the website of Zijin Mining Group we learn they’ve bought a 60 % stake in the Taldybulak Levoberezhny mining project (the mine should have been fullly operational early this year). Translated by Soh Tiong Hum:
Department of European-Central Asian Affairs under the Ministry of Foreign Affairs, Department of European Affairs under Ministry of Commerce, the Ambassador of Kyrgyzstan and Zijin Mining Group met to exchange views on development of Taldybulak Levoberezhny Gold Mine.
February 26-27, Zijin Mining Group Vice President Huang Xiaodong and North West Company General Manager Xie Xionghui met in Beijing with Deputy Director Liu Bin, Department of European-Central Asian Affairs, Ministry of Foreign Affairs, Deputy Director Chang Lingji, Department of European Affairs, Ministry of Commerce, and Kyrgyz Ambassador to China, to exchange views on the joint venture between Zijin Mining Group and Kyrgyzaltyn to develop the Taldybulak Levoberezhny Gold Mine.
Mining projects carried out by Zijin Mining Group in Central Asia are recognized and supported by departments from the Ministry of Foreign Affairs and Ministry of Commerce. Kyrgyzstan’s Ambassador expressed her willingness to provide more meaningful coordination for Zijin’s investments in Kyrgyzstan. Kyrgyzstan is a landlocked country located in the northern part of East Asia. The nation has a land area of 199,900 square kilometers. Kyrgyzstan has separate legislative, judicial and executive branches. Parliament is responsible for legislation and is the country’s highest authority whilst the government is the highest executive authority. The country has over 2500 gold deposits (locations), most of them small and have no industrial value. Zijin Mining Group’s cooperation with Kyrgyz state company Kyrgyzaltyn at Taldybulak Levoberezhny Gold Mine is a major development with a service life of 15-20 years.
Notes from the translator:
1. I can’t verify the ‘North West Company General Manager Xie Xionghui’. I’m unable to find a website for this company or any reference whereas Xie Xionghui is either a fairly common name.
2. Based on Wikipedia, there is no reference of a Department of European Affairs in the Chinese Ministry of Commerce nor is there a reference in the ministry’s website.
The website of Zijin Mining Group provides more information on the cooperation:
Taldybulak Levoberezhny Gold Deposit is located in Kyrgyzstan Fortescue Yi Sike state, 120 km east of the capital Bishkek and 12 km south of Orlovka town.
Altynken LLC holds the Taldybulak Levoberezhny Gold Project mining license that is valid until Jan 5th, 2026. Altynken is a company incorporated in the Kyrgyz Republic in 2006. Summer Gold LLP holds 60% interest of Altynken, while Kyrgyzaltyn Open Joint Stock Company (“KOJS”), a state-owned enterprise in the Kyrgyz Republic, holds the remaining 40% interest.
Superb Pacific Limited Company, a wholly owned subsidiary of Zijin Mining Group Co., Ltd., took over the Altynken 60% interest from Summer Gold LLP. The transaction was completed on Sep 30th, 2011.
According to the Kirghizia National Reserves Committee’s assessment, its resources at С1 + С2 level are 2.07775 million ounces of gold metal at average grade of 7.23 g / t; while C1-level reserves ore is 4,949,754 tons with 1.11724 million ounces of gold metal at average grade of 7.02 g / t. The underground mine project uses combined mineral processing technology of gravity separation – flotation, cyanidation, CIL, and the gold recovery rate could be up to 93.1%.
The management team from Zijin Mining Group has controlled project development and commenced the mine design. It is expected that the construction and operation of the Taldybulak Levoberezhny Gold Project would be completed by Jan, 2014.