Uzbekistani government woos foreign gold explorers

The government of Uzbekistan anticipates annual gold production will rise to 126 tonnes by 2005 from the current rate of 80 tonnes.

The government says this increase could be realized from 27 known deposits, only 16 of which have been explored in any detail. And the State Committee for Geology and Natural Resources is seeking foreign partners to assist in the identification and development of still more deposits.

One of the first joint ventures preparing to exploit a gold deposit in the country is between the Uzbekistani government and Australian-based WMC.

Plans call for production at the Zarmitan property to begin in 2000, though the partners have yet to reach a definitive agreement. WMC was awarded the property, which hosts the Zarmitan and Gudzhumsay deposits, in 1996. Overall reserves at those deposits stand at 21 million tonnes grading 10 grams per tonne.

The joint venture intends to upgrade the nearby Mardhanbulak gold recovery plant at a cost of about US$170-million, and a second plant, yet to be constructed, is expected to have a capacity of 2 million tonnes per year.

Construction of this second plant is expected to begin by 1999, though negotiations have yet to be completed.

Meanwhile, a subsidiary of Japanese-based Mitsui, which has already invested US$3 million in tungsten exploration, has announced it will explore for gold in the Southern Nuratau Mountains. Uzbekistani geologists will assist in the program, which will cover 2,000 sq. km over three years. The estimated cost is between US$700,000 and US$1 million.

Quebec-based Mazarin Mining intends to spend US$4.5 million exploring the 620-sq.-km Tandyr gold province, in western Uzbekistan. The arrangement reached between Mazarin and the government will be renegotiated should the joint venture identify any economic gold deposits.

Three gold deposits — Pistali, Kansai and Kulkuduk — have already been identified in the region’s Nuratau Mountains.

— With files from Interfax News Agency.