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Eurasia
January 25, 2019 www.intellinews.com I Page 20
Uzbekistan edging toward gold producer privatisations
Kanat Shaku in Almaty
Uzbekistan looks set to commence a privatisa- tion process for gold producer Navoi Mining and Metallurgical Company (NMMC) before the end of the year.
Under a decree signed by Shavkat Mirziyoyev — the country’s reform-minded president who has spent his first two years in office encouraging frontier investors to return to Uzbekistan now that it is coming in from the cold following the late 2016 death of long-ruling autocrat Islam Karimov — NMMC is to be reorganised into a joint stock company away from state-ownership by 1 Decem- ber 2019. As part of the plan, the company’s man- agement would be handed over to private entities “on a competitive basis”.
More than 80% of Uzbek gold — the country’s main export commodity — is produced by NMMC and Almalyk Mining and Metallurgical Company (AMMC). The decree further states that an IPO should be held for shares in the Uzbek Metallurgi- cal Plant (Uzmetkombinat) in 2022, AMMC in 2023 and NMMC in 2023.
Seventh largest
Uzbekistan is the world’s seventh largest gold producer. Its Muruntau gold deposit, situated in the Kyzyl Kum Desert — a source of turquoise since the days of the Silk Road — is being mined in the world's largest open pit gold mine.
The decree contradicts previous statements made by the Uzbek government, but that is perhaps
not surprising given that it is only gradually that
The Muruntau gold deposit in Uzbekistan’s Kyzyl Kum Desert is part of the world's largest open pit gold mine.
officials, busy last week promoting investment prospects at the UzRoadshow in Berlin, are be- coming more forthcoming with transparent plans and data. In 2018, the government, although it had already suggested eventually privatising some
of its state-owned companies, said that it aimed to maintain full control of its gold mines and the state-run oil firm.
The country’s largest enterprises in the mining and metallurgical industry will also be expected to prepare financial statements based on inter- national financial reporting standards complete with independent external audits by international auditing firms starting from 2019.
The Uzbek mining companies are to also dis- close corporate information in accordance with International Accounting Standards requirements by 2020. Finally, the enterprises will rely on the Global Reporting Initiative (GRI) standards to pub- lish reports on indirect economic impacts as well as social and environmental issues.
Lifting veil of secrecy
The decree was signed by Mirziyoyev on Janu- ary 17. Under it, Uzbekistan is also to lift the veil of secrecy presently kept over its gold trade and production statistics.
Gold is unofficially estimated to make up approxi- mately 20% of the Central Asian nation’s exports, according to independent export figures. However, figures from international trade data visualisation engine, The Observatory of Economic Complex-