China’s Xinjiang Tebian Electric Apparatus Stock Co. Ltd (TBEA) is expected to begin development of the Upper Kumargh gold deposit located in Ayni district of Sughd province in the second half of this year, according to the Ministry of Industry and New Technologies (MoINT).
An official source at a MoINT says TBEA’s subsidiary company TBEA Dushanbe Sanoati Kuhi has begun construction of a gold mining enterprise at this gold deposit.
Recall, Tajik government granted licenses to develop two gold deposits in the country to TBEA in exchange for construction of a new combined heat and power (CHP) plant in Dushanbe.
The license for development of the Upper Kumargh gold deposit was granted to TBEA at the beginning of last year and the license for development of the Duoba gold deposit had been granted to TBEA earlier.
Under the reached agreements, TBEA has the right to develop the deposits until it recovers expenses made on construction of the Dushanbe-2 CHP plant. After that, new agreements on development of these deposits will be concluded with the company under other conditions.
Both deposits are located in the Ayni district of the Sughd province, and according to expert estimates, one ton of these deposits’ ore contains more than two grams of gold.
TBEA in 2013 received necessary licenses from the Government of Tajikistan to conduct exploration operations at both these deposits until 2017. The company was also exempted from customs duties and value added tax on import of equipment.
The Tajik government has reportedly agreed to give TBEA the rights to further mining deposits if the profit made from two gold deposits doesn’t cover the cost of building the Dushanbe-2 CHP plant.
In an interview with China’s media, TBEA top manager Zhang Xin said last year that according to data provided by the Tajik government, the mineral resources (gold deposits) can cover the company expenses on construction of the Dushanbe-2 CHP plant.
He noted that the Tajik government had agreed to give TBEA the rights to further mining deposits (the location was not identified) if the profit made from the gold deposits doesn’t cover the cost of building the Dushanbe-2 CHP plant.
At the same time, Mr. Zhang noted that the deposits given to TBEA have large gold reserves, and if all resources are implemented completely they will bring large economic profit to the company.
A total cost of the Dushanbe-2 CHP plant constructed by TBEA is 349 million U.S. dollars, including a US$17.4 million contribution of the Tajik Government.
Meanwhile, gold production is increasing in Tajikistan. Last year, gold mining companies operating in Tajikistan produced more than 6.4 tons of gold, which is nearly 17 percent more than in 2017.
