DUSHANBE, July 25, 2012, Asia-Plus — BHP Billiton Limited (Anglo-Australian multinational mining, oil and gas company) has withdrawn from bidding for rights for the Konimansuri Kalon (Big Konimansur) silver deposit in northern Tajikistan in connection with a new policy in its activities, an official source at the State Committee for Investments and State-owned Property Management (GosKomInvest) told Asia-Plus Wednesday afternoon.
BHP Billiton is an Anglo-Australian multinational mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom. It is the world”s largest mining company measured by 2011 revenues and as of February 2011 was the world”s third-largest company measured by market capitalization.
BHP Billiton was created in 2001 through the merger of the Australian Broken Hill Proprietary Company Limited (BHP) and the Anglo-Dutch Billiton plc. The result is a dual-listed company. The Australian-registered BHP Billiton Limited, which is the majority partner, has a primary listing on the Australian Securities Exchange and is the largest company in Australia measured by market capitalization.
“Under its new policy the company gives preference to other investment projects within the Eurasian area,” the source said.
Although only one contender remains for the Konimansuri Kalon deposit, the tender process is going on, the source added.
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Tajikistan’s silver field after BHP Billiton Limited (Anglo-Australian multinational mining, oil and gas company) has withdrawn its bid. The consortium groups Kaztsink (Kazakhstan), Glenmore International (Switzerland), Konimansur (Kazakhstan) and ore refinery Adrasman (Tajikistan).
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.
