Kyrgyz Republic

Estatus EITI Inadequate progress / suspended

Joined EITI in 2007

Datos más recientes desde 2017

Last updated 10 October 2019

Overview

The Kyrgyz Republic has significant deposits of coal and gold that form a substantial part of the economy. Mining has been ongoing in Kyrgyzstan for many years, though extensive mineral developments began only in the last three decades. The mining industry contributed 8.4% to GDP in 2014 according to the 2014 EITI Report.

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.

Read more on the national EITI webpages: here and here (RU).

Tax and legal framework

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. 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 government aims to create a more favorable legal environment to accelerate development of the extractive industries and balance the interests of all stakeholders. For this reason, the legal system and the Extractive Industry Development Strategy are under revision.

Kyrgyzstan does not fully disclose all contracts and license agreements but is currently exploring possibilities for making these publicly accessible from the license register.

There are two forms of state-owned enterprises; joint stock companies (JSCs) in which the government holds a majority share and which are listed on the Kyrgyz Stock Exchange; and Government Enterprises (GEs) which are not listed but are managed directly by respective line-ministries. There are in total four companies that are majority-owned by the government: Kyrgyzaltyn, Kyrgyzkomur, Kyrgyzneftegaz, and Khaidarkan Mercury.

Licenses

According to the license register of the State Committee on Industry, Energy and Subsoil Use, currently there are 2480 active licenses in the Kyrgyz Republic.

Contracts

So far Kyrgyz Republic has not published license agreements or other contractual arrangements with extractive companies, apart from one agreement: the concession agreement of the Kumtor project (through a legal act).

Beneficial ownership disclosure

Kyrgyz Republic took part in the EITI beneficial ownership pilot in 2014, followed by its first attempt at asking companies to disclose beneficial ownership in the 2014 EITI Report. Five companies provided this information and another 15 disclosed their legal owners. Following the data collection process for the 2013-2014 EITI Report, Independent Administrator notes that only 33 companies out of 136 responded to the request about beneficial ownership data disclosure.

In December 2016 the EITI Supervisory Board, together with the national secretariat and the independent consultant published Kyrgyz Republic's beneficial ownership roadmap, detailing next steps on beneficial ownership disclosures in the Kyrgyz Republic.

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

Kyrgyz Republic’s extractive activities are concentrated around its mining sector and specifically around gold and coal extraction. 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. Details of the existence of these resources and their location is available in the 2013-2014 EITI Report.

Natural resources

Kyrgyz Republic has substantial deposits of coal and gold that provide a significant contribution to the economy. In 2015, the flagship Kumtor gold mine produced 521,000 ounces of gold (value of USD $624.8 million), the lion's share of the country's gold. (Source: Centerra Gold)

According to the latest EITI Report, mining constituted 8.4% of the country’s GDP in 2014. It also constituted more than half - 53.9% - of the industrial production of the Kyrgyz Republic.


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

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

Completed the pilot on EITI beneficial ownership in 2015.
Introduced new amendments to the Law on Subsoil Use that requires all new license applicants to submit data on their beneficial owners.
On communications, the civil society constituency of the EITI have produced two videos Russian and Kyrgyz languages:
- EITI in Kyrgyz Republic
- Development Funds for extractive regions

Implementation

The Kyrgyz Republic 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.

The EITI process was renewed in early 2016, following an institutional set-up study completed in January 2016. A newly formed national secretariat and the Supervisory Board held its first meeting in early July 2016 and is currently working on agreeing a new Memorandum of Understanding and 2016 EITI work plan.

The national secretariat and the Supervisory Board is working with the members of the International Secretariat on Kyrgyz Republic’s Validation that commenced on 1 July 2016. The Validation Report is due to be presented to the International EITI Board by the end of 2016.

Governance

EITI implementation is coordinated by the State Committee for Industry, Energy and Mining, and is overseen by a Supervisory Board comprised of representatives from each stakeholder group (government, companies and civil society). Mr Karybek Ibraev, Deputy Chair of the State State Committee for Industry, Energy and Mining, is the EITI Champion and Chair of the Supervisory Board.

EITI related laws

The government commitment to implement the EITI through the Resolution no.361 (May 2004) establishes 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 Supervisory Board is currently working on revisions to the Resolution 317 and the proposals to be made to the Law on Subsoil Use.

Timeline

Kyrgyz Republic's progress by requirement

EITI Reports and other key documents

2015-2017 Kyrgyz Republic EITI Report

Published Date:

May, 2019

Publisher:

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

Publisher:

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

Publisher:

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

Publisher:

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

Publisher:

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

Publisher:

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