GILS Mining: Kyrgyzstan

Mining

Kyrgyzstan

1. What is the nature and importance of the mining industry in your country? What are the target minerals? Which regions are most active?

The mining industry of the Kyrgyz Republic makes a significant contribution to the country's economy, accounting for 1.1% to 2.7% of GDP in different years (2% of nominal GDP in 2023). This sector is of strategic importance, providing budget revenues, export earnings, and employment, particularly in mountainous and remote regions.

The foundation of the mining industry is gold production, which constitutes the majority of the sector's export output. The flagship deposit is Kumtor, located in the Issyk-Kul region in the Tien Shan mountains, ranking among Central Asia's largest gold deposits. Discovered in 1978, industrial operations began in 1997. Following nationalization in 2021, it is now state-owned and operated by Kumtor Gold Company LLC. In 2023, approximately 13.5 tons of gold were extracted—less than in previous years (up to 22 tons)—due to processing lower-grade ores.

Besides Kumtor, other important deposits include , Jeroy, Taldy-Bulak Levoberezhny, Bozymchak, and several smaller gold-bearing sites. Gold remains a key source of foreign currency earnings and tax revenues while providing employment not only in mining but also in related sectors. The legal framework for exploration, extraction, and taxation is established by the Subsoil Law and the Mining Code of the Kyrgyz Republic, with licensing administered by the State Agency for Geology and Mineral Resources.

In addition to gold, the country possesses substantial coal reserves—over 1.3 billion tons. Coal is primarily used for domestic consumption in energy and heating. Coal mining is concentrated in the Naryn, Jalal-Abad, and Osh regions. The republic is taking steps to modernize the coal industry to reduce dependence on energy imports.

The country also has deposits of uranium (mostly of technogenic origin), antimony, mercury, rare earth elements, as well as construction materials—limestone, granite, gravel, and clay—which are in high demand for construction and infrastructure projects.

The most active mining regions are:

• Issyk-Kul region (gold mining hub)
• Naryn region (coal)
• Jalal-Abad and Osh regions (non-ferrous metals and construction materials)

Additionally, promising rare metal sites have been identified in the Batken region.
Thus, Kyrgyzstan's mining industry remains one of its key economic sectors, dominated by gold production, with significant potential in coal and strategic mineral resources, as well as opportunities for further investment in exploration and extraction.

2. What are the principal laws that regulate the mining industry? What are the principal regulatory bodies that administer those laws? Were there any major amendments in the past year? 

The main regulatory act governing the mining sector in the Kyrgyz Republic is the Law of the Kyrgyz Republic “On Subsoil” dated May 19, 2018, No. 49. It defines the procedures for state regulation, the rights and obligations of participants, and liability for violations of subsoil use legislation.

There are also a number of special legislative and regulatory acts, including:

• The Law of the Kyrgyz Republic dated August 17, 2020, No. 134 “On Environmental Safety,” which sets requirements for minimizing the environmental impact of mining activities;
• Resolution of the Government of the Kyrgyz Republic dated November 29, 2018, No. 561 “On Issues of Licensing the Right to Use Subsoil,” which defines the procedures for issuing, extending, and revoking licenses for exploration and extraction of mineral resources;
• Resolution of the Government of the Kyrgyz Republic dated July 23, 2015, No. 524 “On Approval of the Regulation on Individual Artisanal Mining of Alluvial Gold on the Territory of the Kyrgyz Republic”;
• Resolution of the Government of the Kyrgyz Republic dated August 18, 2017, No. 517 “On Approval of the Regulation on Land Reclamation Disturbed During Subsoil Use”;
• Resolution of the Government of the Kyrgyz Republic dated September 14, 2017, No. 570 “On Certain Issues Regarding Operations with Raw Materials Containing Precious Metals”;
• Resolution of the Government of the Kyrgyz Republic dated December 15, 2017, No. 810 “On Issues of Allocating Land Plots for Subsoil Use”;
• Resolution of the Cabinet of Ministers of the Kyrgyz Republic dated August 12, 2022, No. 449 “On Approval of Rates and the Procedure for Calculating, Paying, and Collecting Arrears of the Fee for Holding Subsoil Use Licenses”;
• Resolution of the Government of the Kyrgyz Republic dated February 5, 2019, No. 43 “On Approval of the Regulation on State Registration of Rights to Extract Sand-Gravel Mixtures and Loams”;
• Resolution of the Cabinet of Ministers of the Kyrgyz Republic dated August 23, 2021, No. 148 “On Approval of the Procedure for Granting Subsoil Use Rights by Decision of the Cabinet of Ministers of the Kyrgyz Republic.”

Key regulatory bodies:

• Ministry of Economy of the Kyrgyz Republic – develops subsoil use policy, coordinates regulatory work, handles investment issues in the mining sector, monitors the industry, and protects the rights of entrepreneurs;
• Kyrgyz Geological Service under the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic – licenses subsoil use, organizes geological exploration, forecasts reserves, and attracts investment in the geological sector;
• Environmental and Technical Supervision Service under the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic – monitors compliance with industrial, environmental, and technical safety standards, including facility operations, occupational safety, waste management, and conducting blasting and other hazardous operations;
• Department of State Regulation in the Field of Environmental Protection and Environmental Safety under the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic – responsible for implementing state environmental policy, pollution monitoring, regulating activities in specially protected natural areas, and participating in the development of environmental protection programs.

Key developments over the past year:

• Lifting of the ban on geological exploration of uranium and thorium deposits. In June 2024, the Jogorku Kenesh of the Kyrgyz Republic adopted a law lifting the ban on activities related to geological study of subsoil aimed at the search, exploration, and development of uranium and thorium deposits.
• Amendments to the procedure for conducting subsoil use auctions. According to changes adopted in April 2024, the winner of the auction is the applicant offering the highest price for obtaining the right to use subsoil. For large and medium-sized gold and silver deposits, the winner is the participant offering the highest price and a share to the state.

These changes are aimed at attracting investment and more efficient utilization of the country’s mineral resources.

3. What classification system does the mining industry use for reporting mineral resources and mineral reserves? (How does this system compare to generally recognised international systems such as the CIM Standards (Canada), the JORC Code (Australia) and the SAMREC Code (South Africa)? 

In the Kyrgyz Republic, the classification of mineral resources and reserves is based on a national system developed by the State Commission on Mineral Reserves (GKZ KR). This system is inherited from the Soviet model and is used for recording reserves in the State Balance, with emphasis on the stage of geological study, technical-economic feasibility, and deposit development conditions.

Reserves are classified into categories:

A – fully explored,

B – well studied,

C1 – preliminarily explored,

C2 – estimated,

D – prospective (not always used).

Reserves that do not meet profitability criteria are classified as off-balance sheet.

Unlike international standards (CIM, JORC, SAMREC), which are investor-oriented and focus on public reporting, the GKZ KR system is designed for state accounting and is less detailed in terms of economic evaluation. International standards require involvement of a competent person, mandatory economic justification, and full transparency.

Although the GKZ KR system is not CRIRSCO-compliant, Kyrgyzstan is working towards harmonization. Some projects (e.g., Kumtor) use dual reporting – according to both GKZ and JORC/CIM standards. In the future, the introduction of a national code similar to KAZRC in Kazakhstan is possible.

4. To what extent does the state control mining rights in your jurisdiction? Can those rights be granted to private parties and to what extent will they have title to minerals in the ground? Are there large areas where the mining rights are held privately or which belong to the owner of the surface rights? Is there a separate legal regime or process for third parties to obtain mining rights in those areas? 

Subsoil resources in the Kyrgyz Republic are the exclusive property of the state, as stipulated by the Law of the Kyrgyz Republic "On Subsoil" (as amended on June 27, 2024). The State Agency for Geology and Subsoil Use under the Ministry of Natural Resources, Ecology, and Technical Supervision of the Kyrgyz Republic is the primary authority responsible for regulating and overseeing subsoil use. This agency is in charge of issuing licenses, monitoring compliance with license conditions, maintaining the State Mineral Reserves Balance, and managing the State Register of Deposits.

Individuals and legal entities, including foreign investors, are entitled to obtain licenses for exploration, development, and extraction of mineral resources. Licenses are granted through competitive bidding or auction procedures, and in certain cases—such as for small deposits of commonly occurring minerals—upon direct application. The main subsoil users in Kyrgyzstan are large mining companies such as Kumtor Gold Company CJSC, Kyrgyzaltyn OJSC, and various private companies operating at coal, construction materials, and other mineral deposits. A license grants the right to use subsoil resources, but not ownership of the minerals themselves, which remain state property until extracted. Upon extraction, ownership of the minerals transfers to the subsoil user, provided that taxes and fees are duly paid, including the subsoil use tax and bonuses.

The state exercises strict control over mineral extraction rights. Licenses are issued for a specific term: up to 5 years for exploration and up to 20 years or for the duration of deposit development for extraction. To obtain a license, applicants must submit a technical and economic justification, a work plan, and proof of financial capacity. The State Agency has discretionary powers in reviewing applications and may deny them if the project contradicts national interests, environmental regulations, or other requirements. Transfer of licenses to third parties or changes in control over the license holder require prior approval from the agency, and for strategic deposits (e.g., gold or uranium), approval from the Cabinet of Ministers of the Kyrgyz Republic is also required.

There is no practice of private ownership of mineral extraction rights or their linkage to surface land ownership in the Kyrgyz Republic. Subsoil rights are separate from land rights, and even if a subsoil user owns the land, it does not automatically entitle them to extract minerals. To develop a deposit, a subsoil user must obtain: (1) a subsoil use license from the State Agency for Geology and Subsoil Use; (2) a mining allotment act confirming the boundaries of the subsoil area; and (3) permission to use the land plot from local authorities or a land lease agreement. Land plots required for mining activities may be expropriated from private owners in the public interest, with compensation in accordance with land legislation.

Extensive territories with privately held mineral extraction rights do not exist in Kyrgyzstan. Subsoil use rights are granted only within the boundaries of specific deposits identified through geological exploration. The legislation does not provide for the creation of large mining clusters with special procedures for granting rights. There is no separate legal regime for third parties wishing to obtain extraction rights in areas already licensed to another user. Such parties may only acquire rights through the transfer of a license with the State Agency’s approval or by participating in a new tender or auction in case of license cancellation or expiration.

Extensive territories with privately held mineral extraction rights do not exist in Kyrgyzstan. Subsoil use rights are granted only within the boundaries of specific deposits identified through geological exploration. The legislation does not provide for the creation of large mining clusters with special procedures for granting rights. There is no separate legal regime for third parties wishing to obtain extraction rights in areas already licensed to another user. Such parties may only acquire rights through the transfer of a license with the State Agency’s approval or by participating in a new tender or auction in case of license cancellation or expiration.

5. What information and data are publicly available to private parties that wish to engage in exploration and other mining activities? 

Kyrgyzstan offers an Investment Map for investors, which enables them to track government proposals for obtaining rights to develop mineral deposits and extract mineral resources through investment and concession agreements. A potential investor can select proposals in the mining sector, choose a form of participation (public-private partnership, establishment of a new enterprise, or other formats), determine the investment volume, and select the project’s location.

In the Kyrgyz Republic, private individuals and investors interested in the exploration and development of mineral deposits also have access to various open information sources that provide data on geological resources, licenses, and investment opportunities.

The State Geological Portal of Kyrgyzstan (https://geoportal-kg.org) offers detailed information on mineral deposits, including data on reserves, geographic location, and geological study status. The portal also provides information on the distribution of licenses by type and quantity of mineral resources.

The Open Data Portal of the Kyrgyz Republic (https://data.gov.kg) contains a wide range of statistical data, including information on mineral extraction, industry performance indicators, and other aspects related to the mining sector.

The National Statistical Committee of the Kyrgyz Republic (https://stat.gov.kg) provides official statistics across various sectors of the economy, including mining. It offers data on extraction volumes, exports, and other economic indicators.

The Ministry of Energy and Industry of the Kyrgyz Republic (https://www.gov.kg/ru/structure/ministries/ministries/ministerstvo-energetiki-i-romyshlennosti) publishes information on current and planned investment projects in the mining sector, as well as opportunities available to private investors.

These resources provide potential investors and private entities with the necessary information to assess investment opportunities, plan exploration activities, and participate in mining projects in the Kyrgyz Republic.

6. What mining rights may private parties acquire? How are these acquired (eg, first come, first considered; first come, first served; discretionary or competitive bidding)? What obligations does the rights holder have? If exploration or reconnaissance licences are granted, does such tenure give the holder an automatic or preferential right to acquire a mining licence or more senior tenure? What are the requirements to convert to a mining licence? 

In the field of subsoil use and subsoil protection in the Kyrgyz Republic, individuals and legal entities may acquire:

(1) the right to use subsoil for geological study, exploration, and extraction of mineral resources;

(2) ownership rights to extracted mineral resources from the moment of their extraction;

(3) the right to obtain a land plot for mining activities on a leasehold or temporary use basis;

(4) other rights related to investment protection and access to geological information.

Subsoil users acquire these rights based on licenses issued by the Kyrgyz Geological Service under the Ministry of Natural Resources, Ecology, and Technical Supervision of the Kyrgyz Republic. A license is granted to the first applicant whose documents meet the legal requirements within 30 working days. In the case of strategic deposits or when multiple applicants apply for the same plot, a public auction (awarded to the highest bidder) or tender (based on experience and investment commitments) is held. If an investment agreement is concluded, a license may be issued without a bidding process by decision of the Cabinet of Ministers of the Kyrgyz Republic.

Subsoil users are obliged to:

(1) implement the work plan in accordance with the technical and economic feasibility study (TEFS);

(2) comply with environmental standards, including conducting an Environmental Impact Assessment (EIA) and land reclamation;

(3) pay the License Holding Fee (LHF), royalties, and taxes;

(4) ensure operational safety and report emergencies;

(5) maintain geological records and submit data to the State Commission on Mineral Reserves of the Kyrgyz Republic (GKZ KR);

(6) conduct public consultations and support local communities.

The legislation provides for separate licenses for geological study, exploration, extraction, and combined licenses. An exploration license grants the preferential right to obtain an extraction license if reserves are confirmed and an application is submitted within 6 months. Blasting-based extraction requires an additional permit from the Environmental and Technical Supervision Service under the Ministry of Natural Resources, Ecology, and Technical Supervision of the Kyrgyz Republic, which is issued within 30 working days after verifying compliance with safety requirements.

7. What is the regime for the renewal and transfer of mineral licences? (Describe the renewal and transfer rights with respect to exploration, reconnaissance, exploitation and mining licences and the level of government discretion. Is government consent required to transfer a licence or with respect to change of control of the licence holder or its parent? What notices, filings or approvals are required in relation to the transfer of mineral rights or mining businesses?)

In the Kyrgyz Republic, the regime for extension and transfer of mineral exploration and extraction licenses is governed by the KR Law "On Subsoil" and the Regulation on Subsoil Use Licensing. The authority to review applications and make decisions rests with the Kyrgyz Geological Service under the Ministry of Natural Resources, Ecology and Technical Supervision of KR.

Extension applications must be submitted no earlier than 6 months and no later than 3 months before license expiration. Required documents include: a compliance report, updated work plan or feasibility study, proof of fee payment, and evidence of no violations. Applications are processed within 30 working days. Extensions may be denied for violations, technical or economic non-viability of the project, or other state interest considerations. Authorities have broad discretionary powers in decision-making.

Transfer of subsoil use rights or changes in licensee control (including sale of over 50% shares or reorganization) requires prior written consent from the State Agency, with strategic deposits additionally requiring approval from the KR Cabinet of Ministers.

Transfers are permitted when:

• The current licensee has no violations
• The new owner demonstrates financial and technical capacity
• All state obligations are fully settled

Supporting documents include: current license, transfer agreement, payment confirmations, and new owner's documentation. Review takes 30-60 working days. Refusals must be substantiated and can be appealed.

Prior consent for transfer is mandatory before execution.

Corporate structure changes affecting control require notification within 30 days.

Unauthorized license transfers are prohibited and result in license cancellation.

Projects in protected areas or agricultural lands require additional approvals.

Thus, license extensions and transfers are strictly regulated with mandatory state involvement, particularly for strategic assets. Government authorities maintain significant discretionary powers and may deny extensions or transfers if risks or violations exist.

8. What is the typical duration of mining rights? Is there a requirement to relinquish a portion of the mining rights to the government after a certain number of years? (Can mining rights be extended or renewed, and under which conditions? Can mining rights be revoked or cancelled anticipatively by the government, and on which grounds?) 

In the Kyrgyz Republic, the duration of subsoil use depends on the type of license and nature of operations. According to the Law of the Kyrgyz Republic "On Subsoil", the following standard terms are established:

• For geological prospecting - up to 5 years with possible extension;
• For geological exploration - up to 10 years with possible extension;
• For mineral extraction - up to 20 years with right of extension until complete depletion of reserves;
• For other subsoil use operations - term determined by the technical project.

Licenses may be extended if the licensee submits an application before expiration and fulfills all obligations, including submitting a technical project and making payments. The law also provides for license conversion - for example, from prospecting to exploration and then to extraction, provided the deposit is discovered and registered in the State Cadaster.

Subsoil use rights may be suspended by the Geology Agency for up to 3 months in cases of violations: non-compliance with industrial or environmental safety requirements, submission of false reports, use of hazardous technologies, or failure to accumulate reclamation funds. In such cases, the licensee receives a violation notice.

Rights may be terminated by the same authority on following grounds:

• Late payment of bonuses, royalties or license fees by more than 30 days;
• Pledging the license without approval;
• Conducting operations without approved technical project;
• Failure to rectify violations that caused suspension;
• Voluntary relinquishment of rights;
• License expiration without extension request.

Termination is not permitted if obligations were not fulfilled due to force majeure confirmed by competent authorities.

The law does not provide for mandatory partial relinquishment of rights to the state after a certain period. However, rights redistribution may occur in cases of undeveloped deposits, audit results, or strategic necessity.

Thus, Kyrgyzstan's licensing system operates on flexible yet clearly regulated terms: it allows conversion, extension and transfer of rights, while establishing strict grounds for their restriction, suspension or termination in case of violations.

9. Is there any distinction in law or practice between the mining rights that may be acquired by domestic parties and those that may be acquired by foreign parties (eg, is the ownership of mining rights by foreign parties restricted or prohibited in any fashion? is it necessary or desirable for a foreign party to have a domestic partner)?

The legislation of the Kyrgyz Republic in the field of subsoil use applies equally to both domestic and foreign legal entities and individuals. The Law of the Kyrgyz Republic “On Subsoil” dated May 19, 2018, No. 49 does not explicitly impose restrictions or prohibitions on the ownership of exploration and extraction rights by foreign parties. Foreign investors have the right to participate in subsoil use on the same terms as local companies, provided they comply with legal requirements and undergo licensing in the general procedure.

In practice, however, foreign legal entities interested in engaging in mining activities in Kyrgyzstan often establish legal entities in the form of limited liability companies or joint-stock companies registered under the jurisdiction of the Kyrgyz Republic. This simplifies accounting and tax reporting, access to government services, and interaction with local authorities and communities.

While having a local partner is not a legal requirement, it may be advisable in some cases—primarily to facilitate administrative procedures, gain public support in the regions of operation, and ensure compliance with environmental and social obligations. Additionally, the participation of the state or a state-owned enterprise among the founders may be viewed as a factor contributing to the project's stability, especially in the case of large-scale or strategic mineral deposits.

Thus, the legal framework in Kyrgyzstan is aimed at non-discriminatory participation of foreign investors, although prevailing practice favors institutional structuring through a local legal entity, often involving national partners.

10. What are the principal business structures used by private parties carrying on mining activities (eg, branches, corporations, partnerships, joint ventures and trusts)? 

In the Kyrgyz Republic, the exploration and extraction of mineral resources are carried out by both domestic and foreign legal entities. The country's legislation stipulates that mining rights may be granted to individual entrepreneurs and legal entities, including branches and representative offices of foreign companies. Thus, foreign entities can participate in mineral exploration and extraction without the mandatory establishment of a local legal entity, including through the opening of a branch.

However, in practice, the primary business structures used by private entities in the mining sector are limited liability companies (LLCs) and joint-stock companies (JSCs). These forms offer limited liability for participants, flexible corporate governance, and access to investment and financial instruments.

LLCs are the most common legal form. They provide asset protection for participants, do not require significant charter capital (minimum 100 KGS), and allow for a simple management structure. However, the number of LLC participants must not exceed 30; otherwise, the company must be converted into a JSC.

JSCs are primarily used for large-scale projects and raising capital through the issuance of shares and bonds. The minimum charter capital for a JSC is 100,000 KGS, which must be fully paid up and allocated upon establishment. The law permits both open and closed JSCs, with stricter corporate governance and disclosure requirements for open JSCs.

Another common practice is the formation of joint ventures between foreign investors and Kyrgyz partners, particularly in projects involving state participation or strategically significant deposits. Such projects are typically structured through an LLC or JSC registered in Kyrgyzstan.

The registration of legal entities, branches, and representative offices is handled by the Ministry of Justice of the Kyrgyz Republic. The standard registration process takes 3 business days, while branches of foreign companies may take up to 10 calendar days.

An additional option for structuring mining operations is to establish a presence in free economic zones (FEZs)—such as Bishkek, Karakol, Maimak, Leilek, and Naryn. Companies operating in FEZs benefit from tax and customs incentives, simplified regulatory procedures, access to infrastructure, and streamlined hiring of foreign workers. The Naryn FEZ, located near the Chinese border, is of particular interest to mining companies due to its potential for raw material development.

Thus, mining operators in the Kyrgyz Republic most commonly organize as LLCs or JSCs, while also utilizing branches or joint ventures. The flexibility of the legal framework and the availability of special FEZ regimes make the jurisdiction attractive for structuring mining activities involving both local and foreign investors.

11. What duties, royalties and taxes are payable by private parties carrying on mining activities? Are these revenue-based or profit-based? 

Individuals and legal entities engaged in mineral extraction in the Kyrgyz Republic are required to pay a range of mandatory taxes and fees in accordance with the Tax Code of the Kyrgyz Republic No. 3 dated January 18, 2022. The tax burden is determined based on production volume, type of mineral resource, and economic performance (income or profit).

Bonus - a one-time payment for subsoil use rights, payable upon license acquisition. Its amount is set by the Cabinet of Ministers of the Kyrgyz Republic and depends on the type of mineral resource and deposit characteristics. The bonus is denominated in national currency or US dollars and can represent a substantial sum for deposits with high economic potential.

Royalty - a mandatory periodic payment for mineral extraction, calculated based on actual production volume and resource type:

• For gold: royalty may reach several percent of the sales value;
• For coal: approximately up to 3% of gross income;
• For construction materials, sand and gravel: fixed rates per cubic meter or ton apply.

Royalties are levied on sales revenue (not profit) and represent a key source of fiscal revenue in the sector.

Corporate income tax applies to legal entities at approximately 10% of taxable profit. Individual entrepreneurs typically pay tax on gross income under a simplified regime.

VAT (value-added tax) applies to product sales, including mineral resources, and may reach 12%.

Property tax is imposed on assets used in extraction operations, calculated at rates varying by region and asset value.

Environmental emission charges are mandatory payments calculated according to standards established by the Ministry of Natural Resources, Ecology and Technical Supervision. These depend on emission volumes, environmental impact characteristics, and production specifics.

Thus, mining companies in Kyrgyzstan face a combined tax burden including both profit and property taxes, along with industry-specific payments primarily based on revenue or production volumes. Royalties and bonuses play a central role in the subsoil use payment system and are regulated on a case-by-case basis.

12. What is the environmental review and permitting process for a mining project? How long does it normally take to obtain the necessary permits? 

An applicant interested in implementing a mining project in the Kyrgyz Republic must follow the following procedures to conduct an environmental assessment and obtain permits:

(1) Obtaining a subsoil use license:

To begin mining activities, the applicant must obtain a license for exploration or extraction of mineral resources. The application is submitted to the State Agency for Geology and Subsoil Use under the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic (the Agency). The application must include:

• A feasibility study of the project
• A work plan
• Proof of financial capacity

The application is reviewed within 30 business days, but the term may be extended if clarifications are needed. For strategic deposits (e.g., gold), approval from the Cabinet of Ministers is required, which may extend the process to up to 60 days.

(2) Development of Environmental Impact Assessment (EIA) materials:

The applicant is required to prepare EIA materials, which include:

• Analysis of the project’s potential environmental impact
• Measures to minimize negative effects
• Alternatives to project implementation

The EIA is prepared by a specialized organization in accordance with the Law of the Kyrgyz Republic “On Environmental Expertise” (No. 54 of 16.06.1999) and the Regulation on the Procedure for Conducting State Environmental Expertise (Government Resolution No. 248 of 07.05.2014). The preparation time depends on project complexity and typically takes 1–3 months.

(3) Conducting public hearings:

As part of the EIA process, the applicant must organize public hearings to discuss the project with the local population and stakeholders. Notification must be published at least 20 days prior in the media and on the website of local authorities. The results of the hearings are recorded in minutes and included in the EIA materials. This stage takes 1–2 months depending on public activity and project complexity.

(4) Submission of documents for State Environmental Expertise (SEE):

Upon completion of the EIA, the applicant submits project documentation, including the Environmental Protection section and the EIA materials, to the Ministry of Natural Resources, Ecology and Technical Supervision of the Kyrgyz Republic. The package must also include:

• Copies of approvals from other government agencies (e.g., land use)
• Environmental passport of the project
• Proof of payment of the SEE fee

Registration of documents takes up to 15 business days. The expertise itself is conducted within 30–45 business days, with the possibility of a 20-day extension upon request.

(5) Obtaining the SEE conclusion:

As a result of the SEE, a conclusion is issued, which may be:

• Positive (with possible conditions, e.g., additional environmental protection measures)
• Negative (with reasons and recommendations for revision)

A positive conclusion confirms compliance with environmental requirements and is mandatory for obtaining an environmental permit. The conclusion is valid for at least 5 years or the duration of the project. In the event of a negative conclusion, the applicant revises the documentation and submits it for re-expertise, adding 1–2 months to the process.

(6) Obtaining a Comprehensive Environmental Permit (CEP):

Based on the positive SEE conclusion, the applicant applies to the Ministry of Natural Resources, Ecology and Technical Supervision for a CEP, which includes standards for emissions, discharges, and waste management. The application must include:

• SEE conclusion
• Project documentation with the Environmental Protection section
• Proof of fee payment

The CEP is issued within 20–30 business days.

(7) Obtaining the mining allotment act:

To begin extraction, the applicant must obtain a mining allotment act confirming the right to use the subsoil plot. The application is submitted to the Agency and must include:

• Approved project documentation
• SEE conclusion
• Subsoil use license

The application is reviewed within 30 business days.

(8) Additional permits:

Depending on the project specifics, the following may be required:

• Land use permit: issued by local authorities (aiyl okmotu or mayor’s office) within 30 business days
• Water use permit: issued by the State Agency for Water Resources within up to 45 business days
• Blasting work license: issued by the Ministry of Internal Affairs upon submission of a blasting project, within up to 30 business days
• Sanitary-epidemiological conclusion: issued by the Ministry of Health for projects potentially impacting public health, within up to 20 business days

(9) State expertise of project documentation:

In addition to SEE, project documentation undergoes:

• Geological expertise: conducted by the Agency or an authorized organization to assess reserve reliability and technical solutions. Duration: up to 30 business days
• Industrial safety expertise: conducted by the Ministry of Emergency Situations for projects involving hazardous industrial facilities (e.g., tailings). Duration: 30–60 business days depending on complexity

Total duration of the process:

• EIA preparation and public hearings: 2–5 months
• SEE: 1–2 months
• CEP: 1 month
• Subsoil use license: 1–2 months
• Mining allotment act: 1 month
• Additional permits (land, water, blasting): 1–3 months
• Geological and industrial expertise: 1–2 months

In total, assuming timely document preparation and no revisions, the process takes 8–14 months. Timeframes may increase due to:

• Project complexity (e.g., strategic deposits require Cabinet of Ministers approval)
• Need for repeated environmental expertise
• Delays in coordination with government agencies or public opposition

Specifics for strategic deposits:

Projects involving gold, uranium, or other strategic resources require additional approval from the Cabinet of Ministers, adding 1–2 months.

Notes:

• Land acquisition or lease is regulated by the Land Code of the Kyrgyz Republic and is not addressed here.
• Projects based on investment or concession agreements undergo a competitive investor selection process, which may take 6–12 months.
• Foreign investment projects may require additional approval from the State Agency for Investment Promotion and Protection, adding 1–3 months.

13. What is the closure and remediation process for a mining project? What performance bonds, guarantees and other financial assurances are required?

In the Kyrgyz Republic, the closure of a mining project is regulated by the Law of the Kyrgyz Republic “On Subsoil” and is carried out in accordance with the procedure approved by the Cabinet of Ministers of the Kyrgyz Republic. Closure is implemented upon the expiration of the license, depletion of mineral reserves, or when further development of the deposit is no longer feasible. It must be conducted in accordance with a technical liquidation and reclamation project that has undergone environmental and industrial safety expertise and has been approved by the competent authorities.

The closure procedure includes:

• Backfilling of open pits and underground workings;
• Dismantling of equipment and infrastructure;
• Neutralization or isolation of contaminated areas and tailings storage facilities;
• Restoration of the fertile soil layer;
• Reclamation of disturbed land (landscape restoration);
• Monitoring of groundwater and pollution sources;
• Submission of geological and mine-survey documentation to state archives.

Closure is formalized through the establishment of a special closure commission composed of representatives from state authorities, the subsoil user, environmental experts, and local authorities. Based on the results of the closure, a liquidation report is prepared and submitted to the relevant state body in the field of geology and environmental protection.

The legislation of the Kyrgyz Republic establishes the obligation of the subsoil user to provide a financial guarantee for mine closure. According to the Law “On Subsoil,” the subsoil user is required to:

• Accumulate funds in a special deposit account designated exclusively for reclamation and closure;
• Annually allocate a certain percentage (typically 1–2% of revenue or a fixed amount) to the reclamation fund;
• Provide information on the accumulated funds to the licensing authority.

Failure to comply with the requirements for fund accumulation or the absence of a closure plan may serve as grounds for suspension or revocation of the license. State authorities have the right to require early closure if the subsoil user’s activities pose a threat to life, public health, or cause environmental damage.

Thus, the process of closing a mining project in the Kyrgyz Republic is strictly regulated by law and includes mandatory environmental and industrial expertise, a liquidation plan, the establishment of a closure commission, and financial guarantees provided by the subsoil user. This ensures the sustainability and safety of mining operations even at the final stage of field development. 

14. What were the biggest mining news events over the past year in your jurisdiction and what were the implications? What are the current trends and developments in your jurisdiction's mining industry (legislation, major cases, significant transactions)?

Currently, the mining industry of the Kyrgyz Republic faces three key challenges: (1) ensuring transparency and sustainability in mineral resource management, including through the digitalization of licensing and strengthening state control; (2) adapting the national mineral resource classification system to the CRIRSCO international standards; and (3) creating favorable conditions to attract foreign direct investment in geological exploration and mining.

In 2024, as part of sectoral reforms, significant legislative changes were initiated. Specifically, the Jogorku Kenesh approved a bill allowing the voluntary transfer of mining shares to the state, aimed at strengthening the state's role in strategically important gold and coal deposits. Additionally, the 2019 law banning the development of uranium and thorium deposits was repealed, paving the way for the development of the Kyzyl-Ompol deposit.  

One of the most notable industry events was the signing of seven cooperation agreements by the Kyrgyz Republic in June 2024 with international mining and service companies, including SRK Consulting (UK) and Metso (Finland), during the MINEX Central Asia forum. These agreements aim to introduce advanced technologies and improve environmental standards in mining.

A notable direction in state policy has been strengthening the role of the Kara-Balta Mining Plant, which has been granted exclusive rights to process gold-bearing raw materials within Kyrgyzstan. Efforts to restrict concentrated exports also continue: the ban on gold ore exports has been extended until July 1, 2024, to allow businesses time to adapt.

Furthermore, in November 2023, during negotiations with German business circles, the Kyrgyz side outlined a strategic objective—attracting investors to develop rare earth element deposits, which are in high demand in high-tech industries such as electronics and defense.

In 2025, the adoption of a new state strategy for sustainable mining is planned, with a particular focus on the social impact of mining projects, mechanisms for coordination with local communities, and compliance with international environmental standards.

Authors: Nurlan Kyshtobaev, Tilek Obolbekov