DUSHANBE, October 8, 2010, Asia-Plus — China’s gold mining company, Zijin Mining, which assumes the 75 percent ownership interest in the joint gold mining venture, Zeravshan Gold Company (ZGC), has invested US$51 million in reconstruction and modernization of the company to this day, Asia-Plus has learned at the ZGC administration.
Zijin Mining also plans to invest additional US$110 million in the company in the coming five years, the ZGC deputy director general Bobokhon Bobokhonov said.
According to him, ZGC is expected to produce a total of 1,100 kilograms of gold this year. “We plan to exploit fresh capacities in the autumn of 2011 that will allow increasing production volumes 1.5 times compared to this year,” said Bobokhonov, “The capacities will continue to increase within the next five months and it is possible that production of gold will be brought to 7 tons per year.”
ZGC was launched as a joint venture with Nelson Resources Ltd (44%) and the Tajikistan government (51%) and the IFC (5%) in 1994. In September 2002, Avocet signed a heads of agreement to acquire the Tajik gold assets of Toronto-based Nelson Resources Ltd held through Nelson”s subsidiary, Commonwealth and British Minerals Ltd. The assets included a 44% interest in Zeravshan Gold. In November 2004, Avocet increased its equity interest in ZGC from 49% to 75%. In late July 2007, Avocet sold its equity stake in ZGC to Zijin Mining.
ZGC owns gold mining and exploration rights to a 300,000-hectare area near the town of Panjakent in northern Tajikistan.
