Wave of protests against foreign owned gold mines in Kyrgyzstan

Published by MAC on 2020-10-07
Source: Rferl.org, Mining.com, Reuters, Globe & Mail (2020-10-08)

Amid nationwide political unrest in response to disputed parliamentary election results

Several miners had reported attacks on their offices and facilities amid widespread unrest in the Central Asian nation. According to sources, dozens of unidentified people tried to break into the office of Canadian-owned Kumtor Gold Company in Bishkek. Menanwhile, work on Jeruy, Kyrgyz’s second-largest gold deposit, has been suspended after intruders smashed and torched facilities at the site. Kumtor, which accounts for the bulk of Kyrgyz gold output, is owned by Canada’s Centerra Gold. Jeruy is operated by Alliance Altyn, which is controlled by Russian mining company Vostok-Geoldobycha.

On May, 1998, a truck from the Kumtor gold mine carrying cyanide used in processing gold overturned on the road and rolled into the river above the village of Barskoon, spilling some 1.7 tons of the toxic element. The company failed to notify Barskoon’s 6500 residents, who use the river water for drinking and irrigation. Within a week, more than 500 people in the area had sought medical treatment. By June, that number rised to nearly 5000. More than 22 years after the deadly spill, a Bishkek court ordered on August 2020 that the surviving plaintiffs each receive about $5700.See previous on MAC: 2020-01-27 Kyrgyzstan: grief-stricken Kumtor mine revived 2016-01-09 Kyrgyzstan: The struggles at Kumtor take a bizarre new twist 2013-06-03 Kyrgyzstan Calls State of Emergency After Gold Mine Clashes 2012-10-08 Kyrgyzstan protestors storm parliament over Canadian gold mine 2005-08-04 Special Report: toxic spill dispute revived in KyrgyzstanWave of attacks on foreign owned gold mines amid Kyrgyzstan’s political upheaval

https://www.marketscreener.com/quote/stock/CENTERRA-GOLD-INC-1409419/news/Centerra-Gold-Wave-of-attacks-on-foreign-owned-gold-mines-amid-Kyrgyzstan-s-political-upheaval-31496018/

10/07/2020

Kyrgyzstan has seen a wave of attacks on foreign-owned gold mines across the country amid the nationwide political unrest-turned-coup that is ongoing in response to the weekend’s disputed parliamentary election results, according to both local reports and foreign media.

Much of the political violence directed at the gold mines was intertwined with longrunning anger among Kyrgyz citizens who perceive foreign-owned entities as unduly benefitting from Kyrgyzstan’s natural resources at the expense of the population. The country is home to flagship open pit gold mine Kumtor, operated by Canada’s Centerra Gold, which is the single largest contributor to the Central Asian nation’s GDP, of which it generates around one-tenth.

Kyrgyzstan is also developing the Jeruy project, expected to enter production this year with the goal of eventually reaching 5.5 tonnes of annual output. Jeruy’s gold reserves are estimated at 88 tonnes and ore mining has already started at the deposit. The Russia-owned Alliance Altyn, the operator of Jeruy project, set to be the country’s second largest gold producer, had to suspend mine development works on October 6 after intruders smashed and torched facilities at the site, the company said.

Extraction plant set alight

“Work has been suspended due to the unauthorised entry of unknown people onto the mine’s territory. More than 50 people arrived in cars. We were forced to suspend work for safety reasons,” a spokeswoman for Alliance Altyn was quoted by Reuters as saying. She noted that the intruders set fire to the gold extraction plant and smashed up offices in administrative buildings. Alliance Altyn is controlled by Russian mining company Vostok-Geoldobycha.

The Kumtor mine remained untouched as of October 6. It is located in a remote mountainous spot 430 kilometres away from the Kyrgyz capital Bishkek, the epicentre of the unrest and attempted coup that is playing out. Centerra Gold confirmed that operations at Kumtor continued uninterrupted amid the political upheaval. The company said it was monitoring political developments to ensure conditions remained safe for transporting people and supplies to the mine.

Mines that have been affected by the countrywide unrest included the Bozymchak copper and gold mine, which saw its production suspended on October 6 by the mine’s operator, London-listed Kazakh miner Kaz Minerals.

Locals seize Full Gold’s mine

The Ishtamberdi mine operated by China’s Full Gold Mining has been seized by 300-400 local residents, according to Kyrgyz media reports. Unverified sources claimed that the Chinese workers and staff were chased away from the mine’s territory, according to the reports.

At the Jamgyr gold deposit, operated by Global Jamgyr Mining and funded by Kazakh investors, locals reportedly took some of the workers and staff hostage.

Another Chinese-owned gold project, Kichi-Chaarat, tightened security at its mine, anticipating riots by the locals.


Dozens of people try to break into office of Canadian-owned Kumtor Gold Company

https://www.theglobeandmail.com/world/article-dozens-of-people-try-to-break-into-office-of-canadian-owned-kumtor/

October 7, 2020

Dozens of unidentified people tried to break into the office of Canadian-owned Kumtor Gold Company in the Kyrgyz capital of Bishkek on Wednesday, Russian news agency TASS and news website 24.kg said.

Several miners had reported attacks on their offices and facilities a day earlier amid widespread unrest in the Central Asian nation. Kumtor, which accounts for the bulk of Kyrgyz gold output, is owned by Canada’s Centerra Gold.


Facilities destroyed in attack on large Kyrgyz gold deposit

Reuters https://www.reuters.com/article/kyrgyzstan-protests-jeruy-int/facilities-destroyed-in-attack-on-large-kyrgyz-gold-deposit-idUSKBN26R2BW

October 6, 2020

BISHKEK (Reuters) – Work on developing Kyrgyzstan’s second-largest gold deposit has been suspended after intruders smashed and torched facilities at the site on Tuesday during nationwide unrest, the Russian-controlled company operating the mine said.

The Jeruy project was due to enter production this year, with annual output eventually reaching 5.5 tonnes. Gold reserves at the deposit are estimated at 88 tonnes and ore mining had already begun at the deposit.

The raid took place amid protests in the Kyrgyz capital, Bishkek, where the opposition said it was seizing power following a disputed parliamentary election.

“Work has been suspended due to the unauthorised entry of unknown people onto the mine’s territory. More than 50 people arrived in cars. We were forced to suspend work for safety reasons,” a spokeswoman for Alliance Altyn said.

The intruders set the gold extraction factory on fire and smashed whatever they could find in administrative buildings, she said.

Alliance Altyn is controlled by Russian mining company Vostok-Geoldobycha.

Kyrgyzstan’s largest gold mining operation, Kumtor, which is run by Canada’s Centerra Gold CG.TO, has so far reported no security incidents. Centerra said it was monitoring political events but that its operations were continuing uninterrupted.

Local news website Akipress said protesters also showed up at smaller mines developed by Chinese and Turkish companies and demanded that they halt operations. It was unclear if the companies have complied.


October 6, 2020

Kaz Minerals (LSE: KAZ) has suspended production at its Bozymchak copper and gold mine in Kyrgyzstan, amid post-election unrest in the Central Asian nation.

Unidentified men destroyed facilities at another gold deposit in the former Soviet republic on Tuesday and local media reported attacks and protests at a few more mines, according to Reuters.

The central election commission of the country has declared the results of the weekend’s parliamentary election invalid after mass protests erupted in the capital Bishkek and other cities demanding the resignation of pro-Russian President Sooronbay Jeenbekov.

Opposition supporters had seized government buildings overnight, freed the ex-president Almazbek Atambayev from jail and demanded a new election. Hundreds of people were hurt and one person died.

Bozymchak commenced production in the second half of 2014. In 2019, Kaz mined 1,081 kt of ore and processed 1 Mt at a copper grade of 0.82%, producing 7.3 kt of copper and 41 koz of gold. The mine is currently operating as an open pit with up to 1 Mt of ore extraction per year.

Bozymchak is expected to have an average annual output of 6 kt of copper cathode and 28 koz of gold bar over the life of the mine.

Kaz Minerals said in an email to MINING.com that it is monitoring the situation.

Kaz’s stock was down 1.4% on the LSE as of 4:05PM BST. The company has a $3.18 billion market capitalization.

Centerra Gold (TSX: CG) confirmed that operations at its Kumtor mine will continue uninterrupted despite the political unrest in the Kyrgyz Republic.

The mine is located in a remote mountainous location about 430 km by road to the southeast of the national capital Bishkek. Kumtor is one of the largest gold mines in Central Asia operated by a Western company, having produced more than 12.6 million ounces of gold between 1997 and the end of 2019.


Even Two Decades After Massive Cyanide Spill, Kyrgyz Poisoning Victims Get Scant Compensation

Bruce Pannier

https://www.rferl.org/a/qishloq-ovozi-kumtor-cyanide-spill-compensation-gold-mining/30797137.html

August 22, 2020 More than 22 years after a deadly cyanide spill contaminated a remote mountain river of Kyrgyzstan, a Bishkek court has ruled in the case of more than two dozen residents of the northeastern village of Barskoon thought to have been poisoned by a transport accident near the Canadian-Kyrgyz gold-mining operation.

The court ordered on August 10 that the surviving plaintiffs each receive 400,000 soms (about $5,700) for being poisoned after the 1998 accident on a road leading to the Kumtor gold mine, which dumped nearly a ton of cyanide into the river that runs through their village.

The plaintiffs plan to appeal the ruling despite their notable lack of success in more than two decades of trying — with time running out.

No Cause For Alarm?

On May 20, 1998, a truck from the jointly owned Kumtor gold-mining company carrying sodium cyanide used in cleaning gold overturned on the road and rolled into the river above the village of Barskoon, spilling some 1.7 tons of sodium cyanide (around 935 kilograms of cyanide).

The mine lies in what the environmental watchdog BankWatch described as “fragile conditions of permafrost and in the vicinity of glaciers that feed fresh waters into the transboundary Naryn River.” The company failed to notify Barskoon’s 6,500 or so residents, who use the river water for drinking and irrigation, for around five hours after the incident.

Once authorities announced the accident, they warned residents in the area against drinking from the river — the village’s sole source of potable water — but assured them that there was no cause for alarm.

It was not long before people started falling ill. Within a week, more than 500 people in the area had sought medical treatment; by June 9, that number had risen to nearly 5,000.

Within around two weeks of the spill, more than half the villagers in Barskoon had been evacuated. More would follow, from Barskoon and neighboring villages, until the entire area was essentially emptied of its residents.

At least several people died. Pregnant women reported being advised — and in some cases forced — to seek abortions.

Almost immediately, there were demands around the country that Kumtor’s operator, Canada’s Cameco Corporation (now called Centerra), be penalized and pay compensation. Some Kyrgyz called for the company to be expelled from the country.

BankWatch alleges that while Centerra “has been the client of the EBRD [multilateral bank] since 1995…the bank has failed to ensure that its client respects public social environmental concerns and social needs.”

But still, things weren’t so simple.

Kumtor Country

Cameco signed a deal with the Kyrgyz state gold company Kyrgyzaltyn in 1992, and they jointly produced their first gold in 1996.

In 1997, the Kumtor project’s first full year of production, Kyrgyzstan’s total gold output was some 17 tons of gold, 14 tons of which came from Kumtor. The gold-mining jump-started Kyrgyzstan’s industrial output in 1997 and significantly helped the country cut its trade deficit. By August 2019, the head of the macroeconomic policy department at the Kyrgyz Economy Ministry, Nasridin Shamshiev, said production at Kumtor accounted for more than 18 percent of national gross domestic product and nearly 45 percent of Kyrgyzstan’s industrial output the previous year.

Kumtor was already important in 1998 and the decades that followed. But it is perhaps more important than ever in 2020, with Kyrgyzstan’s industrial output generally forecast for a sharp drop due the coronavirus.

Immediately after the spill in 1998, a group of independent ecological experts headed toward Barskoon to inspect it, only to be prevented by the mine’s operators from accessing the area. On June 3, a Barskoon woman who had been taken to a hospital in the nearby town of Karakol died, in what appeared to have been the first death attributable to the accident.

The same day, Michel Bernard, who was Cameco’s president at the time, said the spill posed no serious threat to residents or to nearby Issyk-Kul, the pristine alpine lake into which the Barskoon River flows.

Cameco pledged to clean up the spill and pay compensation to those who were affected by the cyanide that had contaminated the river.

The Kyrgyz government vowed improvements in Barskoon, for example by piping running water to the village.

By the middle of June, less than a month after the spill, the residents of the Barskoon area were told they could return to their homes.

The Barskoon That I Knew

Barskoon lies near the south shore of Issyk-Kul, the massive lake in northeastern Kyrgyzstan that is the country’s premier tourist attraction. The north shore hosts most of the tourist areas, which in the 1990s were even more modest than what exists there today.

The second-largest mountain lake in the world, Issyk-Kul is nearly 180 kilometers east-to-west and a bit more than 50 kilometers north-to-south.

There is a ring road around the lake from which a steep, windy road leads up some 2,000 meters of elevation to the gold-mining site at Kumtor around 4,000 meters above sea level, passing Barskoon along the way. Barskoon was a nice place to live. I know because I spent weeks there in the winter of 1992 and again in the spring of 1993 (which is why I also know that the most famous former resident of Barskoon, once called Barsgan, was Mahmud al-Kashgari, an 11th-century scholar who wrote the first comprehensive dictionary of Turkic languages).

My friendships with the people of Barskoon were why I was following events in the area closely after the accident.

I finally returned there in the late summer of 1998 to see how the people who had so kindly taken me into their homes and fed me were faring.

Barskoon’s villagers had been promised compensation. When I arrived at the end of August, they told me that village children had each received some candy and five new pencils. That had been the compensation, they said, up to that point.

There were promises: a new school, a new medical facility, repairs to the road. But there was no indication that any of that would be realized anytime soon.

The locals said European-looking men in uniforms — presumably employees of the mining company — had initially sealed off their village, not Kyrgyz police or soldiers. Cameco eventually agreed to a settlement of $4.6 million, but it is unclear that any of that money ever made it to Barskoon.

In 2005, Tursunbek Akun, the head of the human rights commission under then-President Kurmanbek Bakiev, told RFE/RL that most of the funds had simply vanished.

And the contamination was doing more than just sickening and killing Barskoon’s people, they said; it also temporarily robbed them of one of their main sources of income, the export of locally grown apples.

Barskoon’s apples had been known for their quality and sweetness. But after the spill, the villagers told me, no one would buy them. Some locals had even tried taking their apples to southern Kyrgyzstan for sale, but their documents were checked and they were told to take their suspect fruit back home.

Since then, locals have tried unsuccessfully several times to force the company to pay compensation. Over the course of the past 15 years, the case has made it to Kyrgyzstan’s Supreme Court four times. Each time, it has been returned to a lower court for review.

Local rights defender Erkingul Imankozhoeva has been trying to help the villagers to finally receive fair compensation, frequently crippled by a lack of documentation and other obstacles.

Imankozhoeva told RFE/RL’s Kyrgyz Service, known locally as Azattyk, that despite thousands of cases of illness from the spill, Kyrgyz courts only allowed individuals with medical documentation specifically linking their afflictions to the cyanide discharge to sue Kumtor for compensation.

In 2005, Jypar Jeksheev, who was the Barskoon region’s representative in parliament when the accident happened, told Azattyk that the medical records of many of those who fell ill after the spill had subsequently been altered to suggest outside causes of medical problems, freeing the government and the Canadian company of responsibility.

When the lawsuit was first filed, there were only 29 locals in possession of the necessary medical records. Twelve of them have since died.

One of the plaintiffs in the case, Mirgul Urmanbetov, said he felt 400,000 som was meager compensation, considering what the contamination’s victims had been through.

“We have little hope that justice will prevail,” he added. “We are afraid that the process will again drag on until the statute of limitations expires, and then they will close [the case].”

According to the Centerra website, the Kumtor gold mine produced 12.6 million ounces of gold between 1997 and the end of 2019.

Epilogue

Kyrgyz President Askar Akaev visited the Czech Republic in November 1998.

As an RFE/RL correspondent, I went to an accompanying press conference at Prague Castle.Akaev looked pleased next to Czech President Vaclav Havel. People had compared Akaev, with his academic rather than political background, to Prague’s famous dissident writer-cum-president. In the early 1990s, some people had even labeled Akaev “the Vaclav Havel of Central Asia.”

I was allowed to ask one of the three questions that were permitted at the press conference.

Most of the journalists were there to hear from Havel, and the first two questions had been for him.

Then it was my turn. I introduced myself and said what organization I worked for and, in Russian, welcomed Akaev to the Czech Republic before asking my question.

“I was just in Barskoon,” I said, “and the people there told me they were promised compensation but all they received was some candy and pencils. Does the Kyrgyz government plan to do something to help the people of Barskoon?”

The smile vanished from Akaev’s face and he looked at me and replied, “It is not only Radio Liberty that is concerned for the people in Barskoon.”

But despite whatever concern Akaev was alluding to, neither his (he was ousted in the 2005 Tulip Revolution) nor any other Kyrgyz government appear to have been trying very hard to compensate the people of Barskoon.

SOURCE: http://www.minesandcommunities.org/article.php?a=14399

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