DUSHANBE, April 15, 2011, Asia-Plus — Tajik-Chinese joint gold mining enterprise, Zeravshan (Zeravshan Gold Company or ZGC), intends to produce 1.5 tons of gold for 300 million somoni (equivalent to US$67.1 million) this year, the ZGC representative told Asia-Plus Friday afternoon.
According to him, they plan to increase gold production due to ongoing modernization of the enterprise. “China’s gold mining company, Zijin Mining, which assumes the 75 percent ownership interest in the enterprise, provided US$50 million for modernization work last year and another US$10 million will be provided this year,” the source said.
In 2010, ZGC produced 1,214 kilograms of gold which is 114 kilograms more than it was originally planned and 667 kilograms more than in 2009.
Modernization of the enterprise will last until 2016. Zijin Mining is said to invest US$110 million in modernization of the enterprise until 2016 and the company plans to increase annual production of gold to 7 tons by 2016.
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.
We will recall that Tajikistan produced 2,050 kilograms of gold last year, which is 690 kilograms more than in 2009.
Tajikistan has 28 known gold deposits containing an estimated 429.3 tons of gold. The largest amount of gold was produced in Tajikistan in 1998 – 3,000 kilograms, while the country has produced not more than 1,800 kilograms of gold per year in recent years. Most of gold comes from the Jilau deposit operated by ZGC.
Three large gold mining companies now operate in Tajikistan: ZGC; Tilloi Tojik; and Tajik-Canadian JV Aprelevka. Besides, the private gold mining artel, Odina, operates in Khatlon province.
According to estimates of specialists from the Ministry of Energy and Industries, 2.5 tons of gold will be produced in Tajikistan this year.
