Kyrgyz Republic

EITI Status Inadequate progress / suspended
EITI Member Since 2007
Latest Data From 2014

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.

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

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. 

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.

CommodityReservesUnitSignificance
Gold566tonsGold is a main mineral in Kyrgyzstan, contributing about 8% to the country’s GDP.
Coal2500MTProven coal reserves are 2500 though probable reserves are estimated twice this amount.
Silver481tons
Copper314500tons
Ferrum943500tons
Mercury39510tons
Fluorite2282300tons
Tin 186761tons
Tungsten117233tons
Bismuth5083tons
Plumbum 30000tons
Zinc17600tons
Stibium263986tons
Arsenic65200tons
Molydenum2523tons
Terres rares51500tons

Revenue collection

The mining industry provides about half of export revenues of the Kyrgyz Republic. According to the latest EITI Report the share of the extractive industry in total export in 2013 was 47.1%. The latest EITI disclosures (2013-2014) show that the government revenue from the extractives sector totalled to USD 181 million. Most of these revenues came from mining, with gold as a major commodity.

Initializing chart.

Revenue allocation

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.  

Social and economic contribution

About 3.2% of national employment in 2014 was within the extractive industry *(16 555 in 2014). Most of these employees are involved in basic metal production (8296), mine coal (3510), oil and natural gas production (2486).

According to the 2013-2014 EITI Report, the average monthly salary of employees involved in the production of basic metals is more than 5 times higher than the average salary. Salary of employees involved in oil and gas production, as well as production of metallic ores, is almost 2 times higher than the average salary level in the country.

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:

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 Agency for Geology and Mineral Resources, and is overseen by a Supervisory Board comprised of representatives from each stakeholder group (government, companies and civil society). Duishenbek Zilaliev, Director of the State Agency for Geology and Mineral Resources, 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

Validation

The Kyrgyz Republic was found to have achieved inadquate progress in implementing the EITI Standard. Previously, the country was compliant under the 2011 Rules.

Kyrgyz Republic's progress by requirement