What's Happening?
Silvercorp Metals Inc., a Canadian mining company, has announced plans to develop two of the largest undeveloped gold deposits in Kyrgyzstan's Tien Shan gold belt. The company has signed a Share Purchase
Agreement with Chaarat Gold Holdings Limited and a Cooperation Agreement with the National Investment Agency under the President of the Kyrgyz Republic. Silvercorp will acquire a 70% stake in Chaarat ZAAV CJSC for $162 million, gaining access to the Tulkubash and Kyzyltash gold deposits. The project will be developed in two phases, with significant investments planned for both open-pit and underground operations.
Why It's Important?
This development marks one of the largest foreign mining investments in Kyrgyzstan since the nationalization of the Kumtor mine. It represents a significant opportunity for Kyrgyzstan to attract long-term capital and enhance its mining sector. For Silvercorp, this investment expands its portfolio and positions it as a key player in the region's mining industry. The project is expected to boost local employment and contribute to the country's economic growth, while also testing Kyrgyzstan's ability to manage foreign investments under its revised state-private partnership framework.
What's Next?
The project is set to proceed in two phases, with the first phase focusing on the Tulkubash deposit from 2026 to 2028. Silvercorp plans to invest approximately $150 million in this phase, with commercial production expected between 2027 and 2028. The second phase will develop the Kyzyltash deposit from 2028 to 2031, requiring an estimated $400 million investment. As the project progresses, it will be crucial for Silvercorp to navigate the regulatory and operational challenges in Kyrgyzstan, ensuring compliance with local laws and maintaining positive relations with the government and local communities.
