The Kyrgyz Republic has substantial deposits of coal and gold. Oil and gas reserves, on the other hand, are very limited. With 10.9 tonnes of gold produced in 2012, gold mining remains essential for the Kyrgyz economy.
According to the 2012 EITI Report, mining constituted about 11% of budget revenues, about 7% of GDP and 44% of total exports for the Kyrgyz Republic. Lack of infrastructure and investment is hindering the exploitation of coal, tin and tungsten deposits.
The government is attempting to improve the business climate to attract foreign investment. It aims to increase revenues from the extractive industries through diversification of the sector and integration into the world economy. (Source: National Sustainable Development Strategy.) Relations with China have intensified in recent years, and there are plans to construct a pipeline transporting Turkmen gas from Kyrgyzstan to China.
Implementation activities in Kyrgyzstan are currently focused on disemminating the 2012 EITI Report which was published in April 2014. As in previous years, the KEITI Secretariat has produced a summary report with contextual information about the extractive sector's contribution to the economy, liceenses and production volumes. Building trust between government, companies and civil society is a key issue in Kyrgyzstan. The NGO Tree of life hosts an online forum for discussing natural resource governance, including EITI.
On 23 December 2013, the KEITI Supervisory Board adopted the 2014-2015 workplan. The workplan forsees a number of new activities including monitoring local extractive industry funds for development, monitoring the use of resources allocated for environmental protection, contract transparency, reviewing the allocation of licenses, reporting on the indirect contributions of the mining sector to the economy, and establishing a reporting mechanism for transparency in the use of extractive industry funds allocated for infrastructure investments.
In June 2011, the government of the Kyrgyz Republic decided to establish the Fuel and Energy Sector Transparency Initiative (FESTI), partially modelled on the EITI. FEISTI aims to increase transparency and accountability in the energy sector. It has its own Supervisory Board and a secretariat located within the Ministry of Energy.
The EITI Reports include payments to the social fund and environmental charges.