Description: Kyrgyz Republic : Update on the Mining Sector

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Kyrgyz Republic : Update on the Mining Sector

The study, discussed at large with the Government of the Kyrgyz Republic, outlines several development objectives envisaged for the mining sector, namely, to maintain production, and social well-being at existing "kombinats"; to create co...

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Bibliographic Details
Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	MINING SECTOR MINERAL RESOURCES MINING LAW MINING POLICY SECTOR INVESTMENT SOCIOECONOMIC CONDITIONS REGULATORY FRAMEWORK INSTITUTIONAL CAPACITY PRIVATE SECTOR DEVELOPMENT PROPERTY RIGHTS TAXATION VALUE ADDED TAXES TRAINING ASSISTANCE ENVIRONMENTAL CONDITIONS FISCAL CONSTRAINTS SUBSIDIES EMPLOYMENT STATISTICS GOLD MINES & MINING GOVERNMENT PROTECTION GEOLOGICAL EXPLORATION ACCESS TO MINERALS ACCOUNTING ADMINISTRATIVE PROCEDURES AUDITING AUDITS BENEFICIATION CADASTRE CAPITAL MARKETS CITIZENS CLOSURE CLOSURE OF OPERATIONS COAL CORPORATE GOVERNANCE CUSTOMS DECREE DISCLOSURE DISCRIMINATION DIVIDENDS ECOLOGY ECONOMIC DEVELOPMENT ECONOMIC POLICIES EIS EMPLOYMENT ENACTMENT ENVIRONMENTAL IMPACT ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL PERFORMANCE ENVIRONMENTAL PROBLEMS ENVIRONMENTAL PROTECTION EXPENDITURES EXPLOITATION EXPLORATION DRILLING FERROUS METALS FINANCIAL STRUCTURE FISCAL FISCAL CONDITIONS FISCAL YEAR FOREIGN INVESTMENT GAS GEOLOGICAL INFORMATION GEOLOGY GOLD GOLD MINE GOLD MINES GOLD MINING GOLD PRICES GOOD GOVERNANCE GOVERNMENT AGENCIES GOVERNMENT AGENCY GOVERNMENT DEPARTMENTS GOVERNMENT EQUITY GOVERNMENT INSTITUTIONS GOVERNMENT OFFICIALS GOVERNMENT OWNERSHIP GOVERNMENT ROLE GROSS REVENUE GROSS REVENUES IMPORTS INCOME INTERNATIONAL MINING INVESTMENT CAPITAL LAWS LEGAL ENTITIES LEGISLATION LEGISLATIVE PROPOSALS MANDATES MARKET PRICES MERCURY METALS MINE CLOSURE MINE CLOSURE ISSUES MINERAL COMMODITIES MINERAL DEPOSITS MINERAL DEVELOPMENT MINERAL EXPLORATION MINERAL POLICY MINERAL RESERVES MINERAL RESOURCE MINERAL RIGHTS MINERAL SECTOR MINERALS MINERALS EXPLORATION MINES MINING COMPANIES MINING COMPANY MINING DEVELOPMENT MINING ENTERPRISES MINING INDUSTRY MINING INVESTMENT MINING LAW AND REGULATIONS MINING LEGISLATION MINING OPERATION MINING OPERATIONS MINING PROJECTS MINING REFORM MINING REFORM PROGRAMS MINING RIGHTS MINING SECTOR REFORM MINING TAXATION MINING TITLE MINING TITLES MOLYBDENUM NATIONS OIL OIL AND GAS PRODUCTION ORE RESERVES PAYBACK PERIOD PENALTIES POLLUTION POLLUTION STANDARDS PRECIOUS METALS PRESIDENTIAL DECREES PRIVATE MINING PRIVATE MINING COMPANIES PRIVATE SECTOR INVESTMENT PRIVATIZATION PRODUCERS PUBLIC INSTITUTIONS PUBLIC SECTOR QUALITY STANDARDS REFINING REPRESENTATIVES ROYALTY SCIENTIFIC KNOWLEDGE SMALL SCALE SMALL SCALE MINING SOLID MINERALS STATE AGENCIES STATE AGENCY STATE INSTITUTIONS STATE-OWNED ENTERPRISES STREAMS SUSTAINABILITY SUSTAINABLE DEVELOPMENT TAILINGS TAX CONCESSIONS TAX EXEMPTION TAX LAW TAX RECEIPTS TAX REFORM TAX REVENUES TAXATION REGIME TECHNICAL ASSISTANCE TOXIC WASTE DUMPS TRANSPARENCY TUNGSTEN URANIUM URANIUM MINES
Online Access:	http://documents.worldbank.org/curated/en/2002/09/2011690/kyrgyz-republic-update-mining-sector http://hdl.handle.net/10986/15358

Description
Summary:	The study, discussed at large with the Government of the Kyrgyz Republic, outlines several development objectives envisaged for the mining sector, namely, to maintain production, and social well-being at existing "kombinats"; to create competitive legal, and fiscal conditions, attractive to private sector investment; to increase the value added of the sector in terms of taxes, jobs, and induced spin-off industries; to sustain the sector's socioeconomic, and environmental performance; to provide acceptable conditions for closure of non-viable operations; and, to create a professional organization of public institutions. However, and despite government efforts to achieve the objectives, the study finds most of these are not being met. On reviewing the macroeconomic indicators for the country's mining sector, though some have increased since 1994, by and large are deceiving: employment in the sector has decreased, and, tax revenues are actually negative, implying a subsidy by the central treasury to the sector. Virtually all growth in the sector results from the Kumtor gold mine opened in 1997. Notwithstanding external factors outside government's control (price of gold) the study finds poor performance in the sector is due to deficiencies in the policy, legal and regulatory framework, and fiscal and institutional conditions pertaining to the industry. Findings point at the fundamental error by the Government, in taking direct equity participation in mining ventures, suggesting new tax policies to invert the excessively generous tax concessions, i.e., to apply a value added tax. Moreover, a revision to the Mining Law is essential, to provide easier access for exploration rights, and mining titles, including new legislative proposals, while strengthening institutions, professional competencies, environmental protection, and, adopting the United Nations Reserve Resources Classification system.