Either/ Ore: Gold, Uranium and the Prospects for the Kyrgyz Economy

Is Kyrgyzstan the new El Dorado? photo from CA Newswire.

by Ryan Weber

In an October 21 article for CA Newswire, analyst Martin Sieff looks into the possibility that new deposits of gold and uranium could bolster the Kyrgyz economy and perhaps even remove the "resource-poor" moniker from the isolated, mountainous Central Asian country.

"Kyrgyzstan is usually described as resource-poor. But if the country can achieve political stability after its confusing and splintered parliamentary elections on October 10, it may have a far brighter future in the mining of precious minerals."

Sieff intelligently points out the while the global recession is hitting many sectors of the Russian and Kyrgyz economy hard, it also presents an opportunity in rare minerals:

"the weakness of the dollar and the euro on world markets has led to dramatic rises in the value of gold [and uranium], and consequently international mining corporations are showing a new eagerness in prospecting for gold in the remote Central Asian state."

Currently, Kyrgyzstan is ranked 22nd in gold-producing nations, putting out 18 tons of gold each year, but Seiff - working from reports by News Agency 24.kg - predicts that could rise as high as #15, up to 44 tons, with adequate international investment. Uranian, which is found in much smaller quantities in Kyrgyzstan, especially in comparison to the large fields in neighboring Kazakhstan, is also attracting some new attention.

According to Seiff, "In terms of known resources and the possibilities of un-surveyed or under-surveyed areas, Kyrgyzstan in fact shows great promise for finding significant new deposits of gold and uranium."

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