OREANDA-NEWS. July 22, 2008.
Speaker of Jogorku Kenesh of Kyrgyz Republic
Mr. Tagaev Aitibai                                                                                                       
 
Dear Mr Speaker,
 
I met with Prime Minister Chudinov in February this year where we agreed on a framework that would enable the Andash Mining Company (AMC) to meet our obligations under our Mining Licence agreement, complete negotiations and sign an Investment Agreement between the Republic of Kyrgyzstan and ourselves and start construction of our mine in the Talas Oblast.
 
I wrote a letter to the Prime Minister in April detailing my concerns following the request by both Governor Bolobekov and himself to comply with a promise made to residents in the Talas valley by former deputy Prime Minister Usenov to convene a government commission to study social and ecological impacts of our project. We disagreed with the need for such a commission at the time as there was no technical or legal basis for it; we have always met the highest social and ecological standards, and had consistent positive evaluations from both public and independent ecological experts in Kyrgyzstan.
 
Regardless of our misgivings we worked with the commission set up by the department of energy and mineral resources which in their report dated 14 April 2008 gave us overwhelming support for the project design and our management’s intent.  The commission recommended that on completion and approval of the technical design by the State Agency for Geology and Mineral Resources, AMC management should present the technical design to the Talas Rayon with members of the commission and this was planned and executed on July 2 2008.
 
Totally without merit, on June 5 2008, Jogorku Kenesh established yet another commission to study the ecological impact on the Andash Project. None of the members of the commission were recognised experts, being deputies of Jogorku Kenesh, and AMC’s management did not understand their mandate; particularly as it clashed with the formal government commission set up by the head of energy and mineral resources that had already found in our favour. Without our consent, the parliamentary commission decided to use the presentation to the Talas Rayon for their own purposes.
 
On July 2, Beishenbeck Abdyrasakov, Dinara Moldosheva, Roza Otunbaeva and Anash Seitkaziev arrived with members of the original commission 5 hours late and took over control of the presentation, not allowing members of AMC’s team to speak. This provided very limited opportunity for AMC to give the necessary technical design feedback as had been agreed in the original commission’s report of 14 April.
 
In concluding the meeting, the deputies told everyone that the parliamentary committee would only give a decision ‘in the autumn’. Subsequently, one deputy, Dinara Moldosheva has given interviews to the press, in which she has falsely and illegally, without any regard to AMC and its stakeholders, stated that all of the company’s activities would be suspended until the commission has made a decision, that the sighting of the tailings dam is not environmentally safe and that the mine is to be built on land owned by locals to graze cattle.

All of which is false.
 
I must voice my concern and frustration to you as the speaker of Jogorku Kenesh. It is totally inappropriate that members of parliament can push their personnel opinions forward, demand commissions and create political advantage at the expense of the Andash Mining Company.  AMC has met all the requirements, not only of the Kyrgyz Republic, but also to the highest international levels in social and environmental planning to ensure that the operation is managed safely and effectively.
 
We recognise the government commission which with appropriate expert opinion found that the project exceeds all necessary standards, but cannot recognise the value of a parliamentary commission that is set up without due regard for fairness and which allows individual members to use it to fraudulently gain personal political advantage.
 
The Kyrgyz republic desperately needs foreign investment. It is this type of parliamentary backed process which directly damages the reputation of the republic’s investment climate, damages the reputation of companies with the highest standards who are trying to work legally and brings the name of the Kyrgyz Republic and Jogorku Kenesh into disrepute.
 
I should remind you that in terms of the agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Kyrgyz Republic for the promotion and protection of investments, the Kyrgyz republic will create favourable conditions for British companies and specifically investments of companies shall at all times be accorded fair and equitable treatment, and that neither party shall in any way impair by unreasonable or discretionary measures the management of investment.
 
Mark Jones
Chief executive Officer
 
Copy:
MP: Mrs. Dinara Moldosheva
The Head of Parliamentary Commission: Mr. Sergey Ibragimov
The Director of State Agency of Geology and Mineral Resources: Mr Kupar Kurmanaliev