Kyrgyzstan Adopts New Mining Code

In no Confederation of Independent States (CIS) country does the mining sector play quite so commanding a role as in the mountainous Central Asian republic of Kyrgyzstan. Its president, Askar Akayev, says he would like to develop his country into "a Central Asian Switzerland." However, in Switzerland, the gold is largely under the street along Zurich's renowned Bahnhofstrasse. In Kyrgyzstan, though, the gold is still in the mountains. Accordingly, Kyrgyzstan's recent adoption of a comprehensive new mining law has attracted widespread attention. Akayev recently completed a tour of the United States. His visit drew large crowds from the business community at events staged in New York and Washington, DC. The success can be attributed as much to the attractiveness of Kyrgyzstan's min¬ing sector as to the personal charms of the nation's president. Led by a half-billion-dollar investment by Canada's uranium giant Cameco, the mining sector is leading Kyrgyzstan's economic revival. And Bishkek is beginning to show some of the same signs of a "boom town" that already mark its Kazak neighbor, Almaty. Mercedes and BMWs already outnumber the Volgas on Bishkek's major traffic arteries. After nearly two years of debates involving government advisors and a final round of deliberation in Parliament, Kyrgyzstan finally adopted its second mining law. This followed quickly in the wake of measures enacted in neighboring Kazakstan and proposed in Russia. Kyrgyzstan's new law replaces the 1992 law "On Mineral Resources." It was one of the first enactments of an independent Kyrgyzstan. The 1992 law made a major contribution to the introduction of free-market economics in the country by ending the state monopoly over mineral exploration and development. It also laid the groundwork for an independent mining industry. According to Kyrgyz government reports, Kyrgyzstan has about 270 commercially viable deposits of almost 40 types of mineral resources. These include oil, gas, coal, precious-, nonferrous-, ferrous-, rare- and basemetals. However, the nation's key draw is gold. Since enactment of the first law, the government has issued more than 100 licenses for geological prospecting for and development of established deposits of gold.