Investors Discussed Problems in Kyrgyz Mining Industry
OREANDA-NEWS. June 27, 2012. IBC held an Open Meeting to discuss legal aspects constraining the development of the mining industry in Kyrgyzstan, reported the press-centre of IBC.
The meeting was attended by Prime Minister of the Kyrgyz Republic Omurbek Babanov, Vice Prime Minister Djoomart Otorbaev, ? Minister of Economy and Antitrust Policy Temir Sariev, Director of the State Agency of Geology and Mineral Resources Uchkunbek Tashbaev, Chairman of the Industries Development Committee of the Kyrgyz Parliament ?Iskhak Pirmatov, member of the Committee on Constitutional Legislation, State Structure and Human Rights Azamat Arapbaev, members of the Industries Development Committee Kojobek Ryspaev, Nurjan Badykeeva and Igor Gusarov, as well as heads of the country's mining companies and representatives of international organizations.
Investors said that they were concerned about the requirements of the new legislation on the gratuitous transfer of 20 percent share from the mining company to the state. This requirement is valid if the ore deposit is estimated at more than USD50 million (the Regulation on the Procedure for Licensing the Subsoil Use Rights, paragraph 132). Representatives from the business community and investors concluded that the Regulation should be abolished.
Following the meeting, the Government and MPs supported the investors and opposed the transfer of 20 percent of mining companies’ shares to the state, as specified in the new Regulation.