Page 31 - Small Stans and Causcasus Outlook 2022

to answer a lawmaker's question about the amount of gold produced at
Kumtor while it has been under government control and where and for
what price mined gold was sold.

Kyrgyz Prime Minister Akylbek Japarov told RFE/RL on September 22
that after the government took over the gold mine from Centerra Gold,
Kumtor produced 4.1 tonnes of gold, bringing $62mn to the State
Treasury. Three days later, State Committee for National Security
(UKMK) chief Kamchybek Tashiyev said that Kyrgyzstan had gained
$90mn in profit via Kumtor's operations since the time the government
took over the operations.

Centerra Gold said that Kumtor underperformed the 2021 mine plan for
June through September by 24%, Mining.com reported. According to a
Centerra statement sent to the media outlet, Kyrgyz authorities and the
state-imposed “external management” continue to claim the mine is
operating normally, but a very different story is seen based on
production numbers.

If Centerra’s statements are correct, then 2022 does not bode well for
gold production in Kyrgyzstan.

3.1.4 Energy & power

Kyrgyzstan is facing potential electricity shortages related to low levels
of water at its Toktogul Reservoir. The massive reservoir in Kyrgyzstan
will be seen as a barometer for water availability in the region in 2022.

Controversy was in December stirred in Kyrgyzstan by Kazakh Prime
Minister Askar Mamin thanking Kyrgyz cabinet chief Akylbek Japarov
for extra water that Bishkek provided to Kazakhstan during the summer.
Kyrgyz farmers and other citizens asked how that could have occurred
given stated water deficits.

Kyrgyzstan also discharged requested extra water supplies to
Uzbekistan during 2021. In return for the additional water, both
Kazakhstan and Uzbekistan agreed to supply electricity to Kyrgyzstan
so that Kyrgyzstan’s main hydropower plant would not have to function
at full capacity and could accumulate extra water in its reservoir before
the coming spring. But water is reportedly not accumulating fast enough
and most of the pledged Kazakh electricity, and all the promised Uzbek
electricity, has already been delivered.

3.1.5 Construction

N/A

3.1.6 Major Sectors
Kyrgyzstan’s agriculture sector has been hit by severe droughts due to
the heatwave endured by Central Asia in 2021.

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