Kyrgyzstan has finally found a developer for its Jerooy deposit, one of the largest untapped gold fields known in Eurasia. But an outstanding $549 million claim and a hostile local population mean Kyrgyzstan is still years away from seeing any gold emerge from the ground.
The State Geology and Mineral Resources Agency declared Vostok-geoldobycha had won the tender for the 97-ton Jerooy deposit on May 4. Vostok-geoldobycha – owned by Russian oligarch Musa Bazhaev, Russia’s 160th richest man according to Forbes – offered the minimum bid of $100 million.
As part of the deal, Vostok-geoldobycha takes responsibility for a $549 million arbitration claim lodged against Kyrgyzstan’s government by Kazakhstan-based Visor Holding, which is scheduled to be heard in Washington in November. A Visor subsidiary lost its license to the deposit in late 2010 when officials said the company had failed to begin production on schedule.
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