Kumtor paid more than17 billion som to the Kyrgyzstan budget in five months of 2022

Kumtor paid more than17 billion som to the Kyrgyzstan budget in five months of 2022

published: 08 June 2022

As of May 31, over five months of 2022 mining operations at Kumtor amounted to 69.15 M tons. In January-May 2022, ore mined made 2.75 M tons with an average gold grade of 3.33 g/t.

All mining operations at the Kumtor mine are carried out in compliance with safety regulations. After the KGC Geotechnical service noticed the movement of CB20 pit wall in May, mining operations in this area were temporarily suspended for the safety of people and equipment. At the same time, all Kumtor mine services continue to work as usual. The Company management together with the specialists continues to study the situation. As soon as they receive all the necessary information and become confident in work safety, they will make a decision to resume mining operations in this cutback.

Over the five months of 2022, the Kumtor Mill has processed 2.471 M tons of ore with an average gold grade of 2.992 g/t, throughput recovery of 75.79%, 178,020 ounces (5,537 kg) of gold poured. The engineering works started in the period of external management are ongoing, such as replacement of obsolete flotation machines with the Woodgrove latest flotation machines as well as the implementation of the automatic AI-based process control system.

KGC pays all taxes and mandatory payments to the budget on time and in full. In January-May 2022, KGC has paid taxes and other obligatory payments to the budget of Kyrgyzstan in the record amount of 17.3 billion som (206.2 million dollars) against the planned 74.9 million dollars. Of these 11.6 billion som is the amount paid for the KR mineral resource base development. Since 2021, the new management of Kumtor has decided to allocate the funds in the amount of 4% gross proceeds in addition to the planned budget taxes to cover this additional tax.