Kyrgyz Republic

Estatus EITI Inadequate progress / suspended

Joined EITI in 2007

Datos más recientes desde 2017

Last updated 5 June 2020

Overview

The Kyrgyz Republic has significant deposits of coal and gold which contribute significantly to the national economy. The 2015-2017 EITI Report reveals that while its mining sector has been ongoing for many years; extensive mineral developments began only in the last three decades. Since then the extractive industry has seen gradual GDP growth, reaching 10% in 2017.

There are minor oil resources in southern parts of the country but gold extraction continues to be the biggest contributor to the Kyrgyz economy. The biggest gold mine - Kumtor - contributed 9.7% to the Kyrgyz GDP in 2017. The country has minor oil resources in southern parts of the country.

Read more on the national EITI webpage (RU).

Tax and legal framework

The fiscal system in Kyrgyzstan is highly centralised. All revenues from extractive industries go to the state budget whilst local governments only collect property tax and land tax. The Law on Subsoil and Subsoil Use, adopted in May 2018, mandates all extractive companies to report beneficial ownership and financial data according to the EITI Standard.

Mining companies in the Kyrgyz Republic operate under a general tax regime. In addition, they pay specific taxes such as royalty and bonuses. There are several non-tax payments which are governed by the Law on Nontax Payments.

Licenses

Depending on the significance of the field, licenses can be issued based on a tender (for deposits of national importance), auction (for fields approved by the State Committee for Industry, Energy and Subsoil Use) or negotiations (all other fields).

According to the license register of the State Committee on Industry, Energy and Subsoil Use, there were 2366 active licenses in the Kyrgyz Republic as of 2019.

Contracts

The Kyrgyz Republic has not published license agreements or other contractual arrangements with extractive companies, apart from the concession agreement of the Kumtor project, as legally mandated. However, the State Committee for Industry, Energy and Subsoil Use is considering to gradually existing license agreements more accessible .

Beneficial ownership disclosure

In May 2018, the Parliament of the Kyrgyz Republic adopted the Subsoil Law that requires public access to beneficial ownership information and imposes sanctions for non-reporting. The definition includes foreign governments as beneficial owners of companies.

In order to implement the register, the government signed an MoU with OpenOwnership to build a publicly accessible register, aligned with the global beneficial ownership open data standard. The data collected by OpenOwnership is available on the OpenOwnership Register. In September 2019, the State Committee on Industry, Energy and Subsoil Use (SCIESU) finalised the beneficial ownership bylaws which were submitted to the government for approval.

The SCIESU is considering reforming the existing license register to include beneficial ownership information. Currently, SCIESU collects information on company ownership in hard copies as a part of licensing procedures. The information is maintained in the archive of the license department of SCIESU.

Kyrgyzstan: Scoping Note for the Beneficial Ownership Pilot Project

Evaluation Report for the Beneficial Ownership pilot project - Kyrgyz Republic

Beneficial Ownership roadmap - Kyrgyz Republic

Production

Gold and coal extraction are the main commodities produced in Kyrgyz Republic’s extractive sector. There are also deposits of other mineral resources, such as silver, copper, ferrum, mercury, fluorite, tin, tungsten, bismuth, plumbum, zinc, stibium, arsenic, molybdenum and terres rares. The 2015-2017 EITI Report details the location and estimated reserves of these resources.

In 2017, the Kumtor gold mine produced nearly 70% of total gold ore production in the country. Much of the gold is exported to countries such as Switzerland, United Kingdom, United Arab Emirates and Turkey, and contributed USD 700 380 thousand to the state budget in 2017.

According to the latest EITI Report, mining constituted more than half of the country’s industrial production and 10% of its GDP in 2017.


Commodity	Reserves	Unit	Significance
Gold	566	tons	Gold is a main mineral in Kyrgyzstan, contributing about 8% to the country’s GDP.
Coal	2500	MT	Proven coal reserves are 2500 though probable reserves are estimated twice this amount.
Silver	481	tons
Copper	314500	tons
Ferrum	943500	tons
Mercury	39510	tons
Fluorite	2282300	tons
Tin	186761	tons
Tungsten	117233	tons
Bismuth	5083	tons
Plumbum	30000	tons
Zinc	17600	tons
Stibium	263986	tons
Arsenic	65200	tons
Molydenum	2523	tons
Terres rares	51500	tons

Overview of KR extractive industry in 2013-2014 in the EITI 2013-2014 Report

Implementation

The Kyrygyz Republic joined the EITI in 2007. In 2017, the country was found to have achieved inadquate progress in implementing the EITI Standard. View more information under the Validation section of this page or go to the Board's decision in full. Previously, the country was compliant under the 2011 Rules.

Governance

The EITI process is championed by Emil Osmombedov, Head of the State Committee on Industry, Energy and Subsoil Use. Karybek Ibraev, Deputy Chair Head of the State Committee on Industry, Energy and Subsoil Use chairs the national multi-stakeholder group (MSG) supervisory board.

EITI related laws

The government commited to implement the EITI through the Resolution no.361 (May 2004) which established the MSG. Resolution no.317 (Dec 2010) establishes the definition of materiality (companies required to report), further refinements to the reporting process, and governance of the MSG. The revised Law on Subsoil use, 17 September 2012, includes references to EITI.

The Law on Subsoil, amended in May 2018, mandates that extractive companies report according to the EITI Standard, and required companies to disclose their beneficial owners when applying for licenses.

Timeline

Kyrgyz Republic's progress by requirement

EITI Reports and other key documents

2015-2017 Kyrgyz Republic EITI Report

Published Date:

May, 2019

Editor:

Kyrgyz Republic EITI

This EITI Report covers Kyrgyz Republic's extractive sector in 2015, 2016 and 2017. It was published in June 2019 and is available in English and Russian.

Kyrgyz EITI 2018 Annual Progress Report

Published Date:

September, 2019

Editor:

Kyrgyz Republic EITI

This is the Kyrgyz Republic EITI 2018 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).

Kyrgyz EITI 2017 Annual Progress Report

Published Date:

May, 2018

Editor:

Kyrgyz Republic EITI

This is the Kyrgyz Republic EITI 2017 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).

Feasibility study: Systematic disclosures of EITI data in Kyrgyz Republic

Published Date:

March, 2018

Editor:

EITI

Download report,Download mapping systematic disclosure excel file

Download document in Russian

The EITI International Secretariat has undertaken an assessment of routine online disclosures in the extractive sector of the Kyrgyz Republic to examine the country’s readiness to mainstream EITI implementation.In accordance with the Terms of Reference for a mainstreaming feasibility study, the assessment reviews the extent to which there is:

Kyrgyz Republic EITI 2017-2018 work plan

Published Date:

November, 2017

Editor:

Kyrgyz Republic EITI

This is the Kyrgyz Republic EITI 2017-2018 work plan (in accordance with Requirement 1.5).

Validation Kyrgyz Republic 2016 - reports

Published Date:

March, 2017

Editor:

EITI International Secretariat

The Kyrgyz Republic's Validation commenced on 1 July 2016. On March 8 2017, the EITI Board found that the Kyrgyz Republic has made inadequate progress in implementing the 2016 EITI Standard.

The following documentation laid the basis for the Board's decision, attached below:

Initial data collection by the International Secretariat [English] [Russian]Comments from the MSGValidation Report by the independent Validator SDSG [English] [Russian]Industry commentsMSG comments

Kyrgyz Republic

Overview

News, blogs and more

Three takeaways from Kyrgyz Republic on implementing beneficial ownership transparency

Kyrgyzstan - Investigating beneficial ownership in the extractives industries

Kyrgyz Republic: EITI reawakened