Bishkek (AKIpress) - Eurasia Gold Company is intended to offer additional issue of shares at London Stock Exchange in order to finance buying copper field in Kyrgyzstan and silver deposit in Tajikistan, reports the News Agency Gazeta.ru referring to News Agency Reuters.
This company works in gold mines in Kazakhstan. Control packet of shares of the company belongs to Kazakh family of Mukashev. Around 25% of shares is owned by Russian businessman Victor Vekselberg.

Centerra profit drops on mine costs, output to rise

OTTAWA, Feb 7 (Reuters) - Centerra Gold Inc. reported a sharply lower fourth-quarter profit, reflecting higher costs at its Kumtor mine and lower gold production there after a pit wall movement. The mid-tier gold producer, which has interests in mines in Central Asia, also forecast production for full-year 2007 about 20 percent above 2006. Centerra reported late on Tuesday a net profit of $1.9 million, or 1 cent a share, in the quarter ended Dec 31. That is down from a profit of $6.4 million, or 3 cents a share, in the same period last year. The company said it produced 142,000 ounces of gold from its Kumtor and Boroo mines in the quarter, compared to 167,000 ounces in the year-ago quarter. It cost $473 an ounce to produce the gold, up from $300 an ounce in the same period last year. Centerra cut its production forecast in July, after pit wall ground movement at its Kumtor mine in Kyrgyzstan. The company said the fourth-quarter results also reflect a $6 million accrual for a government-mandated salary settlement, and a $1.2 million land tax settlement payment at Kumtor. Those were partly offset by higher gold prices and tax recovery of $8.1 million. For 2007, Centerra said it expects to produce between 700,000 ounces and 720,000 ounces of gold, about 20 percent higher than 2006, at a cash cost of between $375 and $385 an ounce. In 2006, the company mined 586,000 ounces of gold at a cost of $386 an ounce.

Kyrgyz government, Canada-based Centerra Gold Inc. holding negotiations in Moscow

Bishkek (AKIpress) - Negotiations between the Kyrgyz government in the person of First Vice Prime Minister Daniyar Usenov and representatives of the Canadian gold mining company, Centerra Gold Inc., have started in Moscow on Thursday.
The Kyrgyz side is trying to increase its profit share from mining gold at Kumtor gold deposit, whereas Canadian side offers merger of the Centerra Gold Inc. with Eldorado Gold Corp., reports the Fergana.ru.
Also, Kyrgyzstan is intended to solve problems related to increase of taxes paid by the Kumtor Operating Company, equalization of salaries of local workers to salaries of foreigners, and land tax.

Centerra Gold Inc. discontinues discussions regarding a possible business combination with Eldorado Gold Corporation

Bishkek (AKIpress) - Centerra Gold Inc. (TSX:CG) released a statement on Feb 16 to comment recent report of a possible business combination involving Centerra and Eldorado Gold Corporation.
The Centerra Gold Inc. said in its statement that while it is Centerra's practice not to comment on discussions regarding possible transactions until disclosure is required under applicable securities laws and stock exchange rules, yet it confirms that Centerra and Eldorado Gold have been involved in discussions regarding a possible business combination.
However, these discussions have been discontinued, the statement said.
Centerra is a growth-oriented, gold company focused on acquiring, exploring, developing and operating gold properties primarily in Central Asia, the former Soviet Union and other emerging markets. Centerra is a leading North American-based gold producer and the largest Western-based gold producer in Central Asia and the former Soviet Union. Centerra's shares trade on the Toronto Stock Exchange under the symbol CG. The Company is based in Toronto, Canada.

To register, mining companies should have equity capital of US$1m - Justice Minister

Bishkek (AKIpress) - When registering, the mining companies should have the equity capital of at least US$1m, Justice Minister Marat Kaiypov said in Bishkek on Wednesday.
The Justice Minister intends to implement this idea in practice.
It is well known, that numerous companies, especially those active in the mining sector, obtain licenses and then resell the licenses to other companies, the Justice Minister said.

Alfa Group plans gold mining projects in Kyrgyzstan, Uzbekistan

Bishkek (AKIpress) - Beside oil and food industry, telecommunications, retail sales and banking, the Alfa Group showed interest in gold mining, Vedomosti newspaper reported. The Alfa Group is buying shares of the Russian-based Gold Miners’ Association “Amur”.
The Alfa Group decided to go in for gold mining business, several top executives of the Group told the Vedomosti newspaper last autumn. “The company was looking at assets in the CIS, including those in Kyrgyzstan and Armenia,” said one of the company's top executives. “In summer of 2006 we set up the United Gold Company (UGC) which will deal with gold mine projects,” Alfa Group's President Alexey Mihailovskiy said.
The United Gold Company has assets in other gold mine companies, however the Alfa Group did not name them yet. Alexey Mihailovskiy confirmed the United Gold Company is interested in assets in the CIS countries, including Kyrgyzstan and Uzbekistan. The company is focused on big gold deposits of at least 50 tons.
The United Gold Company expects to join the top 10 of the CIS gold mining companies in couple of years.

Russia's Renova Group acquires Karabalta mining factory

Bishkek (AKIpress) - Ural Platina Holding gold mining company, which is a part of Russia's Renova, has acquired a new asset. The company had won the bids on privatization of the uranium processing factory - Karabalta mining factory in Kyrgyzstan. Besides, the Renova reached agreement on cooperation in extracting uranium with South Africa's Harmony Gold, Vedomosti reported.
The Renova was the first biggest Russian private company which managed to reach agreement with the state-owned Technabexport on development of uranium deposits: in January the companies signed agreement on cooperation that stipulates establishment of the joint ventures for extract the ore in Central Asia and Africa. Now the company acquired the first processing asset - the biggest uranium processing factory in Central Asia - Karabalta mining factory. A representative of the Kyrgyz State Property Committee told the Vedomosti that the Ural Platina Holding had won the bid on sale of the state-owned portfolio of shares (72%) of the Karabalta mining factory, however she refused to name the amount and conditions of the deal.
Mark Buzuk confirmed this information to Vedomosti. He said the Ural Platina Holding is intended to invest some dozens millions US dollars into the company.
The Kyrgyz government tried to sell its 72% of shares of the Karabalta mining factory four times since 2002. The last bid was held in September of 2006. The bids were recognized as invalid, since no proposals were received at the starting price of around US$6m. The project capacity of the Karabalta mining factory is 2,000 tons of uranium, 500 tons of molybdenum per annum.

REAL ESTATE

Municipal council proposes introduction of real estate tax in Bishkek

Bishkek (AKIpress) - The permanent commission for economy, budget and finances of the municipal council of Bishkek addressed introduction of the real estate tax at its session on Tuesday.
The members of the municipal council's commission believe introduction of this tax will allow enlarging the municipal budget. It is supposed to create a map of zones, which will divide the capital city into price zones depending upon type, location of the real estate and availability of social and manufacturing infrastructure.
The municipal council's commission agreed that it is necessary to introduce real estate tax, but to have a different tax rates.
The members of the municipal council's commission prepared an address to the parliament where they asked to take into account proposals of the deputies of the municipal council when passing amendments into the tax code of the country.

Bishkek city to enlarge in southern direction

Bishkek (AKIpress) - Deputies of Bishkek Municipal Council approved a Project of detailed planning of southern part of Bishkek city on February 1, 2007.
In a view of deficit of territory in the city development of Bishkek in southern direction was offered in approved General Plan of the city.
Goal of the project is creation of place where people can live and rest. Given territory is estimated for 104 000 people.
This project foresees organization of new parks and boulevards. Building of republican sports stadium “Kok Boru” center, city football center and other sports complexes are planned.

Issyk-Kul Hotel to be privatized soon

Bishkek (AKIpress) - The President permitted privatization of the Issyk-Kul Hotel in Bishkek, head of State Property Committee Tursun Turdumambetov said on Thursday in his interview to the national radio.
Tursun Turdumambetov said the hotel's privatization is explained by the country leadership's wish to improve its services on the eve of the upcoming SCO summit this summer.
The President said the hotel should be privatized in accordance with the law. The respective decree of the government is being prepared.
"We wish the Issyk-Kul hotel could become competitive with such hotels as Hyatt and Ak-Keme, since the Issyk-Kul hotel does not generate too much income for the national income," Tursun Turdumambetov said on the national radio today.

Issyk-Kul-Avrora resort to be privatized

Bishkek (AKIpress) - The Issyk-Kul-Avrora resort is being prepared for privatization.
Chair of the State Committee for State Property Management, Tursun Turdumambetov, in his memo to President Bakiev said that the Avrora needs investments.
"The resort has a very low level of profitability, i.e. incomes the resort gets from its services are scarcely enough to cover the expenditures," he said.
The efforts the resort pays in order to offer services that will meet international standards are not enough. Its exterior, interior, equipment and communication networks are on the level of 1960-s. The resort is physically and morally out of date," Mr Turdumambetov said.
"To be competitive, the resort needs full reconstruction and modernization. With a view of a difficult economic situation in the country, the state is unable to allocate funds for the resort's reconstruction. One of the ways out of the situation is the resort's privatization. This will allow transforming the resort into the facility of the international rate if we attract investments," he said.
To this end, Mr Turdumambetov asked President's permission for the resort's privatization.

MISCELLANEOUS

Kyrgyz foreign trade deficit doubles in 2006

Bishkek (AKIpress) - Kyrgyzstan's foreign trade deficit grew by 120% to $1.135 billion in 2006 from the previous year, reports National Statistics Committeeaccording to the January 2007 review. Kyrgyz trade turnover, including export and import operations by persons, amounted to $2.7272 billion, a growth of 46.6%. Imports rose 60% to $1.9312 billion, while exports grew 18.1% to $796 million. Switzerland (26.2%), Russia (19.4%), Kazakhstan (20.5%), Afghanistan (9.4%) and China (4.8%) were the main destinations of Kyrgyz products.

World Economic Forum: Kyrgyzstan ranked 102nd in travel & tourism competitiveness index

Bishkek (AKIpress) - World Economic Forum has prepared the 2007 Travel and Tourism Competitiveness Index (TTCI) which aims to measure the factors and policies that make it attractive to develop the T&T sector in 124 countries of the world. The TTCI is composed of a number of “pillars” of T&T competitiveness, of which there are 13 in all. These are:

1. Policy rules and regulations

2. Environmental regulation

3. Safety and security

4. Health and hygiene

5. Prioritization of Travel & Tourism

6. Air transport infrastructure

7. Ground transport infrastructure

8. Tourism infrastructure

9. ICT infrastructure

10. Price competitiveness in the T&T industry

11. Human resources

12. National tourism perception

13. Natural and cultural resources

Kyrgyzstan has been ranked 102nd in this index and is followed by such countries as Pakistan, Nepal, Tajikistan and a number of African countries. (www.akipress.com)

Kyrgyzstan rejects entry into HIPC Initiative

Bishkek (AKIpress) - Majority of government members, including heads of state committees, state agencies and Chair of Kyrgyz National Bank voted against Kyrgyzstan's entry into the HIPC (Highly Indebted Poor Countries) Initiative. Only one government member, Minister of Finance Akylbek Japarov, voted for entry into this external debt relief program.

After Kulov’s dismissal as a Prime Minister Kyrgyzstan’s entry into HIPC Initiative was doomed to failure.

Kyrgyzstan to purchase military equipment from Russia in amount of $2 million

Bishkek (AKIpress) - Kyrgyzstan intended to purchase military equipment from Russia in amount of $2 million, informed Minister of Defense of Kyrgyzstan Ismail Isakov in Bishkek on February 19, 2007.
Military equipment will be handed to Kyrgyz mobile forces, said the minister.

British company intends to buy and export Batken cherries

Bishkek (AKIpress) - British company “Jupiter Marketing Limited” is interested in situation with cherry growing in Batken oblast, possibilities of its export and ways of transporting, informs agrarian development department of Batken oblast administration.
Intention of opening British market for Batken cherries was expressed in the official letter sent to the Ministry of Agriculture, Water Resources and processing Industry, says deputy head of the department.
It is notable that 5 sorts of cherries are being grown in Batken oblast, and crop capacity makes 600 tons.

Kyrgyz Investment Credit Bank intended to extend credits for 12 years at 14% interest rate per annum

Bishkek (AKIpress) - Kyrgyz Investment Credit Bank (KICB) is intended to extend credits for 12 years at 14% interest rate per annum, said KICB Chief Executive Officer Mr Kwan-Young Choi in a meeting with Kyrgyz Finance Minister Akylbek Japarov.
This bank will support mortgage loan programs developed by the Finance Ministry that aim to provide housing for public servants and needy citizens, said the press service of the Finance Ministry.
The Finance Minister asked about possibility to reduce interest servicing of mortgage loan to 12%, since half of the mortgage loan will be paid out by the state. Mr Choi said the KICB would explore this possibility.
The issues related to giving the land to the Bank for construction of welfare housing are being resolved at the present moment. The prices for housing will be affordable and may cause decrease of prices for housing at the real estate markets, local experts say. The Ministry of Finance will have a representative in the KICB Board of Directors, since the state owns 10% of the equity capital of the Bank in the person of the State Property Fund.

Around 20 000 Kyrgyz labor migrants to arrive to Kyrgyzstan from Russia soon

Bishkek (AKIpress) - Less than 20 000 Kyrgyz citizens, labor migrants, will arrive to Kyrgyzstan from Russia in a view of Russian governmental decree according to which foreign citizens who work on local markets have to leave Russia till April 1, 2007, said chair of State Committee on Migration and Employment of Kyrgyzstan Aygul Ryskulova at the press conference in Bishkek on February 13, 2007.
These people will have enough money to start their own businesses in Kyrgyzstan, thinks A. Ryskulova.

South Korea intended to invest up to $1 billion into Kyrgyzstan's economy

Bishkek (AKIpress) - South Korea is intended to send a group of investors to Kyrgyzstan for investing into the country’s economy around $5-10million in nearest future. Further investment of South Korean businesses can go up to $1 billion. It became known after the visit of Kyrgyz delegation to South Korea.
The delegation consisted of director of State Residency of President’s administrative Department Victor Chernomorets, Parliament member Nurdin Abdyldaev and representatives of President Administration, reports the press service of State Residency of President’s administrative Department
They visited a number of South Korean cities, met with representatives of big businesses. 110 presidents of South Korean companies were present at the meeting with Kyrgyz delegation in the city Si Hyng. An agreement on friendship and cooperation was signed as a result of negotiations.
“First group of South Korean investors who are willing to invest into Kyrgyz economy arrived to Kyrgyzstan on February 1, 2007,” reports the press service.

China interested in building 4 agricultural machinery plants

Bishkek (AKIpress) - China is interested in building four plants on assembling and repairs of tractors and combines harvesters in Kyrgyzstan. It is planned that plants in Karabalta and southern part of the country will be renewed, said director of state-owned company “Kyrgyz resources” Jyrgalbek Sagymbaev at the press conference in Bishkek on February 1, 2007.
“The Chinese make good combine harvesters, they are compact and cost less than in other states,” said the director.
It is planned to assemble around 100 fodder combine harvesters, 100 grain combine harvesters. Chinese investors are willing to allocate $4 million into the joint project. “This is a huge amount of money for an agricultural plant,” noted J. Sagymbaev.

For more information on Kyrgyz Republic, visit BISNIS online at: http://bisnis.doc.gov/bisnis/country/kyrgyzstan.cfm

BISNIS (www.bisnis.doc.gov) is part of the U.S. Commercial Service (www.export.gov).

BISNIS Representative in Kyrgyzstan is Artyom Zozulinsky (zozulinsky@gmail.com)