Government revenues from mining have more than doubled over the two past years show EITI reports.
Picture: Kyrgyzstan EITI conference 2009
Government revenues from mining have more than doubled over the two past years, according to Kyrgyzstan's 2010 and 2011 EITI Reports published 29 December 2012.
Total revenues collected in 2011 total US$ 260 million, up from US$ 150 million in 2010 and US$98 million in 2009. Gold mining is crucial to Kyrgyzstan’s economy, representing 88% of total revenue reported by the government. The remaining revenue is mainly from oil, gas and coal production.
For the first time, Kyrgyzstan’s EITI Reports disclosed the actual payments from the individual companies per type of payment. These latest reports reveal a high dependency on Kumtor, the leading gold producer, which alone accounted for more than 70% of mining revenues and 12% of the country's GDP in 2011. Gross income tax is the most significant type of payment, accounting for half of all collected revenues. In comparison, royalties only generated 1 % of revenues in 2011.
The reports identify significant weaknesses in private sector auditing practices, revealing that the majority of the companies had not been subject to financial audits in 2010 and 2011. The lack of a comprehensive database of all registered license holders also posed challenges for data collection. KPMG, the firm hired to produce the report, makes important recommendations for more reliable and efficient EITI reporting in the future.
Download and compare Kyrgyzstan’s 2010 and 2011 EITI reports
For further information about EITI in Kyrgyzstan, please visit the Kyrgyzstan country page.