Why is the company “Altynken” exports gold concentrate to China, when they have gold processing plan

He believes that this issue should be discussed with the Kyrgyz authorities and it will be put to discussion.

During the meeting of the Minister of Economy Arzybek Kozhoshev with the Deputy Director General of “Altynken” Weng Yafen reported that to extract the gold is unprofitable due to the low cyanide technology.

According to him, now the company filed documents to Ministry of Economy and the Ministry of Finance to obtain a license for the export of the second batch of concentrate at a rate of 1,800 tons. The first batch of 1170 tons of gold concentrate was already exported.

At the meeting, he said that according to the forecast until the end of the year the company intends to obtain 800 kg of gold, 600 kg received today. Next year it is planned to receive 2,000 kg.

1 troy ounce of gold = 31,1035 grams. According to analysts of kitco.com, gold price for August 18 makes $1350,50 for troy ounce. By calculations, the cost of annual amount of gold mining at the entity (800 kg) constitutes $34,7 million or 2,4 billion som.

As he reported, in 2015 at the plant there was an accident, so they started production on May 25, 2016. A. Kozhoshev told that support from the state to the entity will be only if they carry out the forecast indicators. Export of a concentrate to China - a compulsory measure. Reported about it in LLC "Altynken", commenting on a speech of the plenipotentiary representative of the Government in Chui region Baktybek Kudaibergenov where he wondered: “Why the “Altynken” exports gold concentrate to China when in Kyrgyzstan there is a gold-extracting factory?"

At the present time, noted in “Altynken”, after the completion of a construction of mining and metallurgical plant LLC “Altynken” gold-extracting factory passes a stage of commissioning. It is the period when the technology developed in vitro adapts for its application in an industrial scale. In this case, if the ore processing stage gives good results, confirming laboratory research. In case of flotation from ore about 95% of gold are extracted, with extraction of gold at a stage of a chemical and metallurgical cycle there were problems because the copper extracted in flotation concentrate together with gold significantly reduces extraction of gold and raises a consumption of reagents, including a consumption of expensive cyanides.

"To solve the problem with copper, it was proposed to allocate from the collective flotation concentrate gold-copper flotation and to start up the second part of the flotation concentrate on chemical-metallurgical cycle of the LLC “Altynken”. Allocation of the gold-flotation concentrate predetermined need of its export for conversion abroad as in Kyrgyzstan there are no manufacturing plants which could process it cost-effectively and in compliance with all ecological requirements.

This compelled and temporary measure has been coordinated by all relevant ministries and departments. As the entity of “Altynken” only began productive activity in the mode of commissioning and doesn`t sell yet own products which only appeared, it has no current assets for maintenance of productive activity, including on the salary, it is forced to take the credits. To get rid of this dependence, the company needs to implement a manufactured product in the form of gold-flotation concentrate. This is a temporary solution that will work to debug technology to extract gold in the chemical and metallurgical cycle,"- it is said in a statement.

The alternative, continued in "Altynken" is the suspension of production that has its negative consequences, including causes of social tension among workers and their families, with the non-payment of wages and the taxes and deductions will not be paid as well. LLC “Altynken” makes considerable efforts on the solution of this problem by means of involvement of high quality technologists of China, Russia, conducting intensive researches. And very much hopes that in the nearest future such technology will be found that will allow entire flotation concentrate to process all at the LLC "Altynken" gold-extracting factory, - concluded in the company.

Source: www.ictsd.org/bridges-news .