Page 19 - Small Stans Outlook 2024

5.0 Real Economy
5.1 Real economy - Kyrgyzstan
Since the populist Japarov administration in 2022 completed the renationalisation of flagship gold mine Kumtor, after seizing control from Canada’s Centerra Gold, the president has been at pains to make the case that developing the economically essential resource without foreign investment is the way to go in terms of maximising profits for the public purse. The jury is still out.
The net profit of Kumtor, located near China high up in the Tian Shan mountains, amounted to $371mn in 2022, with 17.3 tonnes of gold mined, Japarov stated in late October.
Having pushed Centerra out of Kumtor, Kyrgyzstan is, it seems, still prepared to further cooperation with AIM-quoted miner Chaarat Gold.
Exploration and development outfit Chaarat on December 1 announced the signing of a memorandum of understanding (MoU) with the government. The company is developing the Tulkubash and Kyzyltash sites.
Kyrgyzstan exported 9.9 tonnes of gold worth $619.7mn in 9M23, according to the National Statistical Committee.
In other commodities, the committee said 2.85mn tonnes of cement were produced in the country between January and November 2023, up 10.9% y/y.
The value of Kyrgyzstan’s industrial production in 11M23 was KGS428.15bn ($4.8bn), up 7% y/y, official statistics show.
5.2 Real economy - Tajikistan
Tajikistan’s state metals company Talco (Tajikistan Aluminium Company), which accounts for the majority of the country’s FX earnings, and the Tajik-China Mining Company, a miner of lead and zinc, were in November included on an official list of companies said to be flouting tax demands.
Talco runs the largest aluminium smelter in Central Asia. It takes advantage of low electricity tariffs to import alumina, process it and export it in the form of refined aluminium.
The tax dodgers were said to owe the government upwards of TJS349mn (around $31mn) in unpaid taxes, with poor revenue and operating prospects given as the main causes for the failures in paying taxes.
AIM-listed mining company Vast Resources in October announced in an update on the company's activities in Tajikistan that its Takob processing
19 Small Stans 2023
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