DUSHANBE, July 14, 2012, Asia-Plus — A consortium led by Glencore International plc’s Kaztsink has remained the only contender for Tajikistan’s silver field after BHP Billiton Limited (Anglo-Australian multinational mining, oil and gas company) has withdrawn its bid.
Azim Ibrohim, head of the Main Geology Directorate under the Government of Tajikistan, says BHP Billiton recently informed the tender commission that it would withdraw its bid.
Thus, a consortium led by Glencore International plc’s Kaztsink has remained the only contender for development of the Konimansuri Kalon (Big Konimansur) silver deposit in northern Tajikistan.
The consortium groups Kaztsink (Kazakhstan), Glenmore International (Switzerland), Konimansur (Kazakhstan) and ore refinery Adrasman (Tajikistan).
According to Azim Ibrohim, the license to develop the Konimansuri Kalon deposit was supposed to be awarded in September this year, but since BHP Billiton withdrew its bid, “the date may be brought forward.”
The tender for development of the Konimansuri Kalon deposit was announced in November 2009 and on March 2, 2010, the government approved the short list and four companies, namely; BHP Billiton, which is a leading global natural resources company, Ziti Mining, which is one of the largest Chinese gold producers, Sichuan Group Ltd (JNMC), which is largest Chinese nickel and cobalt producer, and the consortium led by Glencore International plc”s Kaztsink were on the list. Ziti Mining and Sichuan Group Ltd (JNMC) withdrew their bids last year for some reasons.
Tajik officials says that that according to the preliminary estimates, more than US$2 billion will be needed for development of the Konimansuri Kalon deposit and development of this deposit will take 30-40 years.
We will recall that the Main Geology Directorate head Azim Ibrohim noted on January 11 this year that a new survey conducted by specialists from Micon International Limited (Micon Int) at the Konimansuri Kalon deposit has raised its possible silver reserves to some 70,000 tons. The previous possible silver reserves of the Konimansuri Kalon deposit had been estimated at some 57,000 tons.
The Konimansuri Kalon in Asht district, Sughd province is estimated to contain around 1 billion tons of ore and according to expert estimates, one ton of the deposit”s ore contained around 49 grams of silver, with 0.38 percent zinc and 0.49 percent lead.
The Konimansuri Kalon silver deposit project is expected to generate significant benefits for the country and help strengthen Tajikistan’s fiscal resources. The project is a key part of the government’s strategy to attract private investment and introduce best practices in procurement. Although Tajikistan has rich deposits of minerals, its remote geographic location and low levels of foreign investment have impeded the development of the mining sector.
