FEB. 6 2012 (The Conway Bulletin) – Around 1,400 workers at the Kumtor gold mine, which makes up around 12% of Kyrgyzstan’s national income, started a strike over new tax payments which they say their employer should pay on their behalf. Centerra Gold, the Canadian company which owns and operates the mine, said the strike was illegal.

ENDS

OCT. 16 2011 (The Conway Bulletin) – By Oct. 13 2011 Talas Copper Gold, a Kyrgyz gold mining company, had had enough.

After raiders on horseback had firebombed its camp in a remote part of northern Kyrgyzstan and local officials linked to its project had received death threats, the company decided to postpone further gold exploration. It had simply become too dangerous.

Talas Copper Gold, may only be a relatively small operation but the impact is significant and will echo around investors looking at Kyrgyzstan. The attacks bear the hallmarks of organised crime.

A joint venture between a British company Orsu Metals (40%) and South Africa’s Gold Fields (60%), Talas Copper Gold is the sort of operation Kyrgyzstan needs to lift its economy.

Foreign investors may be essential for Kyrgyzstan but their choice of investment sectors is limited. After water, gold is one of the most abundant natural resource. Kumtor, a gold miner owned by Canada’s Centerra Gold, contributes around 7% of Kyrgyzstan’s national income.

But two revolutions since 2005, ethnic violence last summer that killed roughly 400 people and a change of constitution, make Kyrgyzstan a risky place for foreign investors. Raids and death threats organised by local crime gangs looking for extra revenue often make it just too difficult to operate.

Perhaps most disturbing is that Talas Copper Gold’s experience is not unique. There have been several other cases of raiders on horseback attacking foreign gold prospectors this year.

ENDS