A high-altitude
and investment


Minerals and Mining

Following the discovery of large deposits of Uranium and other strategic minerals, the Soviet Kyrgyz Republic started receiving very significant USSR budget allocations for exploration of minerals. As a result, the density and the quality of exploration in the Kyrgyz lands was higher than the USSR average.

The Soviet exploration effort yielded the discovery of many very diverse mineral deposits and ‘occurrences’ (prospects where the concentration of a mineral was detected but its economic value was not sufficiently assessed).

Many Kyrgyz mineral deposits were subject to very intensive development in the times of the USSR and are now, as a consequence, either fully depleted or are in the «fading» phase.

However, other deposits, especially those discovered in 1980s, never made it to the production stage, although the USSR may have even created all the required infrastructure for it (an extreme example of that is Enylchek — an entire town built by the USSR in the middle of nowhere around several large metal deposits which was finished in 1988 but never actually populated).

You can start your research of mining opportunities in Kyrgyzstan by browsing through the full list of its prospecting, exploration and production licenses. Kyrgyzstan is an open country, and the list is online, including even the phone numbers and addresses of the license holders. The list is maintained on the website of the State Committee for Industry, Energy and Mining and is in Russian; here is the link.

Browsing through the licenses list can give you a general idea of what minerals are available in the country and whether they are actively developed.

A full list of mineral deposits and mineral occurrences (exploration prospects), of over 200 pages, in Russian, can be downloaded here. In case it does not load from the website of the Industry Committee (this happens), here is the download link for a copy of the list saved in January 2018.

Now briefly about the most notable minerals of Kyrgyzstan.


The most exciting mineral to mine in Kyrgyzstan is gold — the country has both hard rock and placer deposits. Dozens of companies are active in gold production, including a regional giant — Centerra Gold Inc., listed on the Toronto Stock Exchange, which controls the Kumtor mine producing over 500,000 oz of gold per annum.

Possibilities of investing into gold exploration and production in Kyrgyzstan are discussed in more detail in «Gold Mining: Investing From 300,000$ to Hundreds of Millions».

Oil and Gas

In Kyrgyzstan almost all the explored oil reserves are located in the Fergana Valley and slightly southwards. In fact, Soviet Kyrgyzstan «received» only a small fraction of the Fergana basin petroleum reserves, while their bulk is located in the neighbouring Uzbekistan whose territory includes the main part of the Fergana Valley.

Most of the Kyrgyz oilfields are in their final stages of production and the yield of the wells is constantly declining. In an attempt to intensify the yield, the State-owned KyrgyzNeftegaz which controls the bulk of the oil production in the country now engages a number of foreign service companies to perform hydraulic fracturing and other ‘deathbed manipulations’ with the oil wells.

Besides KyrgyzNeftegaz, a number of private oil companies are active in the Fergana Valley and the southern provinces of Kyrgyzstan, several of them foreign-owned. However, their achievements are even poorer than those of the State-owned oil company. They ‘torture’ the wells drilled in the times of the Soviet Union not even attempting to discover new deposits.

The oil industry (if you can call it that) can in no way solve the problem of Kyrgyzstan’s dependence on foreign oil and fails to supply enough raw product for the country’s refineries. As a result, petroleum products including gasoline are an important item on the Kyrgyz Republic’s import list.

Kyrgyzstan’s total reserves are 10 million tonnes of oil and around 5 billion cubic metres of natural gas which is roughly equivalent to the reseves of a single mid-size Siberian oildfield.

From the geological point, the discovery of significant new reserves in Kyrgyzstan may be a viable idea.

Practically all the intermontane basins and valleys in the country have the potential to contain large reserves of hydrocarbons.

In the past 20 years a number of companies undertook early stage exploration in several of those areas, but it was done so sluggishly that no promising results were achieved. A company with Chinese capital drilled two parametric wells in the Alay valley (Alay intermontane basin) which most likely proved to be dry (no results reported). Several companies acquired exploration licenses in the Chui Valley but their exploration program hardly even reached the seismic stage.

A Chinese-backed company acquired a license to explore for oil on the bottom of the Issyk Kul lake but never started works. Which is good news because no hydrocarbon reserves may be found there for geological reasons, and the exploration could have only damaged the lake’s resort area.


Kyrgyzstan has significant reserves of coal (around a billion tons in general). Its quality is on average much better than what can be found in the neighbouring Kazakhstan. The problem, however, is the lack of a viable export transportation route.

Many coal deposits were explored by the USSR: in the very south (Sulyukta — The Batken Region), near Osh (Uzgen basin), further north near Tash Kumyr and in the Central Tien-Shan (Kara-Keche mine in the Naryn Region).

The Soviet Union planned to build a coal power plant at the Kara-Keche mine (to balance the hydro power supply in the low-water years), but the country collapsed before the plans could materialize.

As a result, the coal business in Kyrgyzstan now is the domain of small producers whose market is mainly municipal power stations and retail customers buying coal for heating.

From time to time Chinese companies engage the Government of the Kyrgyz Republic in discussions of allowing them to build a railway linking China with the coal-rich regions of Kyrgyzstan. Construction of such a railway would immediately open up the Chinese market to the Kyrgyz coal producers. At the same time, we all understand that Chinese companies come into the developing world with very far-reaching plans and then never leave. And before Kyrgyzstan will agree to the «railroad for resources» deal the Kyrgyz leadership will have to take a strategic decision which will determine the fate of the country for generations ahead. At the moment the country is not ready for it, and we are sure this is for the better.

Potential investment opportunities in the Kyrgyz coal sector can be developed along the following three lines:

1. Develop a transport route for the high quality local coal and export it;

2. Invest into power generation on the basis of the local coal;

3. Do the same as the locals, only more efficiently (extract and sell the coal «as is» or with a slight consumer finishing — eg. in briquettes).

Kyrgyzstan has a variety of unlicensed coal properties; some owners of the licensed ones are ready to agree a farm-in or are ready to sell their license, so there is a good choice of potential targets for investment.


The Soviet Union successfully explored and developed to depletion all the more or less large Uranium properties in the country. A good deal of atomic bomb charges for the Soviet military was made of the Kyrgyz Uranium.

At present the Soviet Uranium mines are in conservation, and from the investment point of view are hardly of interest, unless a workable technology is found to reprocess their tailings and dumps (please see below).

There are very few untapped Uranium prospects in Kyrgyzstan.

The biggest ones are — one in the Sary-Jaz river valley (hard rock deposit containing reserves plus resources = 9.5 thousand tonnes with an average Uranium content of 0,022%), and one in the East of the country — the Kyzyl-Ompul Uranium-Thorium alluvia (12.8 thousand tonnes of Uranium with an average content of Uranium of 0,032%).

In the Chui Valley, not far from the Manas airport, there is a promising Uranium underground deposit, however because of its location within fertile agricultural land we are very skeptical of its development potential — it will be virtually impossible to agree with the local residents for it to even be intensively explored, let alone mine.

The problem with the Kyzyl-Ompul alluvia is the presence of Thorium which is much more toxic than Uranium and will require specialized equipment for processing. Kyrgyzstan does not have it, not even at the Kara-Balta plant which was used to process Uranium ores.

Tailings and Dumps

Over the Soviet years Kyrgyzstan accumulated an enormous volume of tailings from the processing of various ores. There are huge fields of rock-hard tailings from Uranium processing around the Kara-Balta Uranium processing plant about 100 km westward of Bishkek. Similar Uranium tailings surround the town of Maili-Say in the South-West. There are numerous tailings left from the production of gold, rare earths, mercury, antimony etc. etc. Almost all of them still contain potentially valuable elements, but their content is by definition small.

These tailings and dumps wait for the arrival of a miner able to find the technology to economically extract the useful minerals.

There were attempts to do that already. An Australian public company Nimrodel Resources obtained licenses for the tailings and dumps of Maili-Say, but failed to do anything with them apart from issuing several optimistic press-releases for its investors (the company closed its Kyrgyz presence several years ago and changed its name to Walkabout Resources). There were attempts to work over the tailings of the Kara-Balta plant, but the technology to extract residual gold had not been tested successfully.


Combined reserves of Antimony in Kyrgyzstan are around 264 thousand tonnes, contained in seven deposits, two of which are quite large (Kadamzhay and Khaidarkan).

The benefication of the Kyrgyz Antimony ores is complicated (Arsenium is present and the ores are oxydized). Development of this business in Kyrgyzstan awaits the introduction of new technologies.

The Kadamzhay Antimony Plant is working mainly on the raw material from Russia, with very unstable shipments.

Rare Earths

The Soviet Union successfully developed a number of rare earths deposits on the Kyrgyz territory. At present there are no active projects in this mineral category here.

Several years ago Stans Energy, a publicly listed Canadian miner, invested into the rehabilitation of the Kutessay-II mine where certain reserves were left over from the USSR production. However, the project was frozen following the company’s conflict with the Kyrgyz Government.

What Else Do We Have

Tungsten, Tin, Beryllium, Aluminum, Copper, Lead, Zinc, Iron — there are good quality deposits of these minerals in Kyrgyzstan. Some of them are licensed and some are yet to be auctioned off.



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