• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Gold Fields in deal to resume Kyrgyz drilling

Jan 12 2012 15:00 Reuters

Company Data

GOLD FIELDS LIMITED [JSE:GFI]

Last traded 43.51
Change 0.69
% Change 0.02
Cumulative volume 1693481
Market cap 33.70bn

Last Updated: 24/04/2014 at 04:29. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Gold Fields troubled by Ghana tax hike

Gold Fields venture shelves Kyrgyz drilling

Gold Fields posts profit hike

Gold Fields Q3 earnings up sharply

Gold industry to meet as strike starts

Gold shares pale against the real deal

 
Almaty - South African miner Gold Fields [JSE:GFI] has signed an agreement with Kyrgyz villagers that will enable it to resume drilling at a prospective copper deposit three months after an arson attack by horsemen on its geologist camp.

Foreign miners active in the Central Asian state are pinning hopes on a new government to stamp out corruption that has stifled investment in the mining sector of the impoverished ex-Soviet republic, where a single gold mine contributes a tenth of gross domestic product (GDP).

Talas Copper Gold, a joint venture between Gold Fields and Britain’s Orsu Metals, suspended drilling when local villagers received death threats and its camp was attacked in October by horsemen wielding sticks and petrol bombs.

The new agreement between the company and the community of Aral village, a copy of which has been obtained by Reuters, will give local residents priority when staff are recruited and compensate landowners for any material damage that might occur.

In return, residents will undertake to prevent “unlawful actions” and to resolve any disputes through negotiations with the company.

Talas Copper Gold said it would conduct exploration work to international standards.

“This agreement opens the way for Gold Fields to restart the exploration drill programme with Talas Copper Gold,” said David Grant, general director for Gold Fields Kyrgyzstan.

A mountainous country of 5.5 million people, Kyrgyzstan appointed a pro-business government last month after the first peaceful transfer of the presidency in 20 years of independence.

Reliant on one mine


With per capita GDP less than a tenth of that in oil-rich neighbour Kazakhstan, the country relies heavily on remittances from hundreds of thousands of migrant workers and production from Kumtor, its one major operating gold mine.

The Kyrgyz government holds a 33 percent stake in Centerra Gold, the Canadian owner of the mine.

Hoping to attract more investors, the government has promised to weed out the graft that ranked Kyrgyzstan joint 164th of 183 countries in Transparency International’s 2011 Corruption Perception Index.

Australian miner Kentor Gold expects to launch its long-delayed Andash project in Talas province, the same region where Gold Fields operates, in about 15 months.

Talas Copper Gold, which invested $15 million between 2005 and 2010, owns four exploration licences in the northwestern province of the same name.
The most prospective is Taldybulak, which contains copper, gold and molybdenum.

The agreement also applies to the Barkol, Kentash and Korontash licences. It will remain in force until Dec. 31, 2015.

Grant said the only party yet to sign up was the newly created State Agency for Geology and Mineral Resources, pending appointment of a new director.
“It is our understanding that the government has agreed to this text and the state agency will sign in the next month,” he told Reuters
gold fields  |  kyrgyzstan  |  gold prices  |  mining
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Ramphele: ANC can be defeated

The African National Congress can be defeated, Agang SA leader Mamphela Ramphele has told supporters in Temba near Hammanskraal.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...