Tag Archives: metals and mining

Markets: Azerbaijan gold miner still waiting for permission to reopen mine

APRIL 23 2024 (The Bulletin) — Stocks generally moved down over the past week, although Anglo Asian Mining, the Azerbaijan-based gold miner showed an upward shift. Analysts warned, though, that this may be a short-term lift as Anglo Asian is still waiting for permission to restart operations at its Gedabek gold and copper mine in western Azerbaijan.

This is its biggest and most important mine and the company has said that it can’t give full guidance on 2024 potential earnings until it knows when it can reopen the mine.

This has been closed since the middle of last year because of a row over how Anglo Asian stores its poisonous waste matter.

Its share price on the London Stock Exchange has roughly halved over the past 12 months to around 68p.

In other equities news, media reported that BAE Systems, the British arms manufacturer, had increased its stake in Air Astana to 16.95% from 15.3%. Until its IPO earlier this year, BAE Systems had owned a 49% stake in Air Astana, Kazakhstan’s national airline.

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— This story was published in issue 565 of the Central Asia & South Caucasus Bulletin, on April 23 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

EU signs deal with Uzbekistan to develop “critical raw materials”

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APRIL 5 2024 (The Bulletin) — The EU signed a deal with Uzbekistan to develop “critical raw material” (CRM) supply chains. The deal puts the EU into direct competition with China which has already signed uranium mining deals with Uzbekistan this year. The EU has been signing CRM deals since 2021 and already has an agreement signed with Kazakhstan.

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— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Aliyev hosts president of Republic of the Congo

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BAKU/APRIL 4 2024 (The Bulletin) — Ilham Aliyev, Azerbaijan’s president, hosted Denis Sassou Nguesso, president of the Republic of the Congo, in what analysts said was part of Azerbaijan’s pre-COP29 diplomatic push.

Although no major deals were signed, both leaders said that their meeting in Baku had laid the foundation for more bilateral cooperation, especially in the energy sector.

“We have had a wide exchange of views with you today on cooperation in energy and agriculture sectors, and still there is no difference of opinion,” said Mr Aliyev. “We look forward to working together on COP29 and thank you for your support.”

The visit by Mr Nguesso was a rare one by an African leader to Baku and highlights Mr Aliyev’s growing status and also how Azerbaijan’s low key but expansive diplomatic push is paying off.

In Africa, Azerbaijan has opened embassies in Algeria, Egypt, Ethiopia, Kenya, Morocco and South Africa.

In power since 2003, analysts have said that Mr Aliyev has impressed other hardman leaders with his longevity and his defeat of ethnic Armenian forces over disputed land. Azerbaijan’s closeness with the Kremlin and gas trades with the EU, as well as its chairmanship of the COP29 environmental summit, have also given it kudos in certain circles.

“We have huge potential in the field of renewable energy, we have the sun all year round, and we can take advantage of Azerbaijan’s rich experience in this field,” said Mr Nguesso.

Mr Aliyev has been trying to woo African states for some time, carefully building relations.

He chaired the Non-Aligned Movement (NAM) in 2019-2022, a Cold War-era talking shop that was favoured by African countries looking to balance the US and the USSR.

During his tenure as NAM chairman, Mr Aliyev criticised France’s “neo-colonialism in Africa”, a dig linked to Paris’ support for Armenia.

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— This story was published in issue 564 of the Central Asia & South Caucasus Bulletin, on April 15 2024

— Copyright the Central Asia & South Caucasus Bulletin 2024

Gold production falls at Kumtor, says Centerra

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NOV. 3 2021 (The Bulletin) — Toronto-based Centerra Gold accused the Kyrgyz government of significantly reducing gold production at the Kumtor gold mine since it expropriated it in May. In its quarterly results, Centerra Gold said that between June and September, the Kumtor gold mine had produced 24% less gold than expected. Centerra Gold has said that it will fight to regain ownership.

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— This story was published in issue 506 of the Central Asia & South Caucasus Bulletin, on Nov. 4 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

London shell company takes over Kazakh miner

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OCT. 26 2021 (The Bulletin) — London-listed shell company East Star Resources agreed a deal to buy Discovery Ventures Kazakhstan (DVK) in a reverse takeover. It said that DVK shareholders will be issued with 45m East Star shares, with another 75m on offer depending on performance. DVK owns the right to gold and silver prospects in Kazakhstan.

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kumtor Gold takes $10m loan

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OCT. 21 2021 (The Bulletin) — Kumtor Gold, a subsidiary of Toronto-based Centerra Gold, won approval from a New York court to borrow $10m despite objections from Kyrgyzstan which expropriated the company’s Kumtor gold mine in May. Centerra Gold has promised to fight the Kyrgyz government for control of Kumtor which it took control of after alleging environmental damage.

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— This story was published in issue 505 of the Central Asia & South Caucasus Bulletin, on Oct. 28 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Kyrgyz Pres. Japarov promotes ally

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OCT. 12 2021 (The Bulletin) — Looking to consolidate his power, Kyrgyz Pres. Sadyr Japarov promoted his loyal lieutenant Akylbek Japarov (no relation) to the newly created position of cabinet chairman. In June, Adlybek Japarov had been promoted to economy minister and deputy minister after he successfully brought environmental charges against Canada’s Centerra Gold for its management of the Kumtor gold mine. The cabinet chairman is an amalgamation of the head of the presidential administration and the head of the cabinet of ministers.

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— This story was published in issue 503 of the Central Asia & South Caucasus Bulletin, on Oct. 12 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

London gold body suspends Kyrgyzaltyn after review

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BISHKEK/SEPT. 17 2021 (The Bulletin) — — The London Bullion Market Association, effectively the world’s gold market ombudsman, suspended the membership of Kyrgyzstan’s Kyrgyzaltyn after it failed a fraud review of its business.

Kyrgyzaltyn is Kyrgyzstan’s state-run gold dealer and its suspension will irritate the Kyrgyz government which relies on gold exports to generate around 9% of its GDP. In May it expropriated the country’s biggest gold mine, Kumtor, from its Canadian owners, Centerra Gold.

In a short statement, the London Bullion Market Association said: “Kyrgyzaltyn JSC has been suspended from the LBMA Good Delivery List for failing to meet the requirements of the Responsible Sourcing Programme. All production from the refinery will no longer be accepted as Good Delivery from this date.”

In June, the London Bullion Market Association said that it had begun a review into Kyrgyzaltyn “in response to issues concerning delivery and the potential for fraud.”

Exclusion from the London Bullion Market Association’s Good Delivery list means that Kyrgyzaltyn will be shunned by the world’s main banks and gold dealers.

Neither the details of London Bullion Market Association’s investigation into Kyrgyzaltyn nor why it had been suspended have been disclosed, although media said that US financial company StoneX Group had accused it of failing to deliver half a tonne of gold. Kyrgyz officials have been quick to blame Centerra Gold, which owned Kumtor from 1997, for their problems.

The Kyrgyz security services have accused Centerra Gold officials and former PMs of corruption.
Responding to the suspension of Kyrgyzaltyn by the London Bullion Market Association, Kyrgyz economy minister Akylbek Japarov said that it would still be able to sell gold to China, India and the Middle East.

“I would like to note that the cancellation is temporary, that is, it can be restored soon,” he said. “Noone expected the Canadians to apologise for all the harm they caused the people of Kyrgyzstan, reimbursing all losses.”

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— This story was published in issue 501 of the Central Asia & South Caucasus Bulletin, on Sept. 23 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Centerra fails in $1m/day fine for Kumtor expropriation

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SEPT. 15 2021 (The Bulletin) — The New York bankruptcy court turned down a case by the Toronto-based Centerra Gold that the Kyrgyz government should pay $1m sanctions for every day since it expropriated the Kumtor gold mine. The judge said that Kyrgyzstan hadn’t yet broken the rules of Kumtor’s Chapter 11 case. The Kyrgyz government expropriated the mine in May.

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— This story was published in issue 500 of the Central Asia & South Caucasus Bulletin, on Sept. 16 2021

— Copyright the Central Asia & South Caucasus Bulletin 2021

Centerra files damages claim over Kumtor

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AUG. 26 2021 (The Bulletin) — Canada’s Centerra Gold filed a bankruptcy motion in the US demanding a fee of $1m per day since the Kyrgyz government expropriated the Kumtor gold mine at the end of May. The Kyrgyz government has said that it has gathered enough evidence against Centerra Gold to prosecute it for corruption and environmental damage. Centerra Gold denies any wrongdoing.

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— This story was published in issue 498 of the Central Asia & South Caucasus Bulletin, on AUG. 31 2021