Kyrgyzstan kicks off underground gold mining at Kumtor

[Redator]

Kyrgyzstan has begun underground gold production at Kumtor, one of Central Asia’s largest bullion mines, which officials say could contain up to 147 metric tonnes of reserves.

President Sadyr Japarov nationalized the mine in 2021, taking it over from Canada’s Centerra Gold (TSX: CG) following years of litigation. The move ended with a settlement under which Centerra abandoned its claims and its subsidiary, Kumtor Gold Company, filed for bankruptcy.

Kumtor was once Centerra’s biggest asset, accounting for more than half of its total output. Since nationalization, the mine has generated $3.4 billion for Kyrgyzstan, according to government figures.

Japarov told local media that state workers have dug 1,600 metres of tunnels so far. “The underground project is expected to operate for 17 years, and geological reserves of 147 tonnes of gold (or 32,150 troy ounces) have been added to the state balance sheet,” Japarov said according to 24.kg.

The Kyrgyz news agency did not provide a monetary value for Kumtor’s reserves, but gold has recently traded at record highs above $3,000 an ounce. At current prices, this suggests that the gold mine holds nearly $14.2 billion just in fresh-added reserves.

Kyrgyzstan also plans to start processing Kumtor’s massive tailings pond, which the government says holds more than 100 tonnes of gold.

The mine, developed by Centerra in 1997, lies about 50 kilometres from the Chinese border in eastern Kyrgyzstan. It remains a top employer and a key driver of industrial output, contributing roughly a fifth of the country’s total production. Output slipped to 12.6 tonnes in 2024, down from 13.6 tonnes the year before.