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Kumtor Gold Mine, Kyrgyzstan


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The Kumtor Gold mine - Background

Quick facts

  • owned by Canadian mining company Centerra Gold Inc.
  • largest gold deposit project managed by a Western company in Central Asia
  • produced 17,66 tons of gold (2010), plans are to further expand operations
  • generates appr. 10 per cent of Kyrgyzstan's GDP [1], but also significant environmental and social threats
  • the Kyrgyz Republic now owns 33 per cent of Centerra Gold Inc.

Fragile surrounding

The Kumtor open pit gold mine is located in a remote area of the Tian-Shan mountain range in Kyrgyzstan at an altitude of 4000 metres, next to the Sarychat-Ertash reserve and not far from the Issyk-Kul lake, an important regional tourist attraction.

The mine is being developed in fragile conditions of permafrost and in the vicinity of glaciers that feed fresh waters into the transboundary Naryn River. It is an area of surreal beauty.


Waste rock on the glaciers


Dangers for the environment

Damage to glaciers

The mine pit slices through two glaciers (Lysyi and Davidov). This vicinity and the practice of storing waste rock directly on the glaciers damages these enormous natural ice sheets.

The glaciers, already suffering from the impacts of climate change, are melting much faster and have shrunk tremendously in recent years, as Kyrgyz scientists have confirmed us.

Potential for catastrophic events

Lake Petrov and its glacier

The mine's tailings (i.e. chemically polluted leftovers) are located below Lake Petrov. The lake grew by more than 92,000 square metres annually in recent years due to a melting glacier. The lake's natural dam has become less and less stable (according to Torgoev Isakbek, author of a State Commission report on the subject).

Although there is no imminent danger, the lake's tremendous growth might cause it to break out at some point. In a worst-case scenario, the downstream tailings could then be washed away, with unforeseeable impacts on the environment.

The tailings dam foundation is also experiencing horizontal deformations and is moving down the slope [2].

Inspite of measures to stabilise the dam in 2003 and 2006 (so-called shear keys and toe berm), the dam is still continuing to move. Kyrgyz scientists believe it is caused by the facts that it has been built on an uneven slope and that the dam never freezes.

Water pollution

Likely the most serious problem at Kumtor is the slow long-term release of contaminants from current and future mining operations.

During summer operations (May through October) some five million cubic metres of waste water from the tailings are treated and discharged into the Kumtor River and eventually flow into the Naryn River (later Syrdarya) towards Tajikistan, Kazakhstan, Uzbekistan.

While Centerra Gold Inc. does not publicise data on the quality of the discharged water, people living near the Kumtor River observed an enormous decrease in fish stock in recent years and suspect that the river has already been polluted.

The seasonal glacier melt-waters and the ground water flow into the mine’s open pit at a rate up to 1000 liters/sec [3]. After contact with the rock, the water becomes chemically-degraded and is then pumped out and discharged to the environment.

See photos from our investigations in Kyrgyzstan on flickr.

Download the report by hydrogeologist Dr. Robert Moran Kumtor gold facilities, Kyrgyzstan: Comments on water, environmental and related issues (pdf).

Accidents at the mine


A blockade by villagers demanding proper compensation for the 1998 accident at the Kumtor mine

Centerra Gold has been the client of the EBRD since 1995 and the bank has failed to ensure that its client respects public social environmental concerns and social needs.

Throughout the mine’s operation, several accidents occurred, leaving several people dead and hundreds in need of treatment:

  • a cyanide and sodium cyanide spill into the Barskoon River in May 1998
  • a spill of 70 liters nitric acid in July 1998
  • an ammonium nitrate spill in January 2000
  • collapses of a 200 metre high pit walls at the mine in 2002 and 2006.

While the company plays down the cyanide spill in 1998, more than 1000 people have turned to the Barskoon local public association “Karek” in need of assistance to protect their rights and to claim compensations for the damages caused by the spill.

A law suit is ongoing since 2005. 24 Barskoon villagers with documented proofs of poisoning demand compensation for moral and health impacts from the mining company.

    “The company did not notify residents of Barskaun, who use the water for drinking and irrigation, until 5 hours after the accident. As a result, over 2,500 people were poisoned, 850 people were hospitalized and at least four of those patients died.”

    Source: Earthworks


Notes

1. EBRD Country Strategy for Kyrgyzstan, 2011

2. Centerra Technical Report 2011

3. ibid.


For more information, contact our Central Asia officer Vladlena Martsynkevych.

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Latest developments


 

Bankwatch in the media | December 2, 2015

BISHKEK, 2 décembre 2015 (IRIN) - High in Kyrgyzstan’s Tian Shan Mountains, the twin effects of climate change and gold mining have combined to pose a potential environmental and human health disaster. A melting glacier is feeding a rapidly expanding lake, which experts fear could burst its banks and overrun a mine tailings pond, releasing toxic waste into the region’s water system.

Bankwatch in the media | October 22, 2015

Kyrgyzstan’s “foreign agent” frenzy, actively supported by Russia, involved the Kyrgyz state security service (GKNB) this month after Prague-based environmental NGO CEE Bankwatch traveled to the site of protests against the Kumtor gold mine project operated by Canadian mining company Centerra Gold.

Bankwatch in the media | July 8, 2015

For years, the European Bank for Reconstruction and Development has been involved in the Kumtor mining project, which some experts say is contaminating ground and surface waters. Kyrgyz local communities have been complaining that the gold mine is causing negative environmental and social impacts on the nearby villages. Additionally, international NGOs and Kyrgyz environmentalists believe that the Canadian-operated Centerra Gold mine is triggering rapid glacier melt due to company’s mining practices. The EBRD has denied these claims.

Blog entry | May 11, 2015

Journalist and researcher Ryskeldi Satke reports on Centerra Gold’s annual general meeting where mining activists presented shareholders with information on human rights violations and the negative environmental and social impacts of the Kumtor Gold mine.

Bankwatch in the media | February 17, 2015

In light of the Mount Polley tailings dam spill in British Columbia, Canada, environmental activists in Kyrgyzstan are ringing alarm bells over a possible scenario of a similar outburst at Petrov Lake near the Kumtor gold mine project. At Mount Polley, the tailings dam at a copper and gold mine burst in August last year, spilling 25 million cubic meters of toxic waste into nearby lakes. The British Columbia provincial government appointed a commission to probe into the disaster.

Publications

Bankwatch Mail | May 10, 2013

If there is one sector in which the EBRD has been causing particular controversy in recent years, it is the energy sector. From lignite in Slovenia to hydropower in Georgia and nuclear in Ukraine, the bank has financed a series of projects that have incurred opposition from various quarters. Now that the EBRD is revising its Environmental and Social Policy it's time to take a look at what needs to be learned from these projects.

Bankwatch Mail | March 7, 2013

In a landmark ruling in late February, the Kyrgyz parliament voted to renegotiate a contract signed in 2009 with the Canadian mining firm Centerra Gold Inc. for the exploitation of the Kumtor gold mine, near the border with China. The 2009 deal is the most recent form of the contract between the Kyrgyz state and Centerra that has had a presence in the central Asian republic since the late nineties.

Bankwatch Mail | December 14, 2012

After long delays and more than three years in the making, the European Bank for Reconstruction and Development (EBRD) finally in early November published its new mining sector policy. Yet both the consultation process and the final outcome have left “consulted stakeholders” disappointed.

Briefing | November 2, 2012

The long awaited EBRD Mining Operations Policy was released last week without much noise. It has taken the EBRD more than 3 years to prepare a document which had raised hopes it could improve the bank's activities in the mining sector. Most of these hopes, however, have not been fulfilled.

Bankwatch Mail | October 9, 2012

With the EBRD due to sign off on its new mining strategy in November this year, 22 MEPs have pointed out in an open letter to European commissioners that given the state of the policy draft the bank risks contradicting the EU Resource Efficiency Roadmap and responsible mining principles. At risk of being compromised too, Bankwatch believes, are the EU's 2020 strategy and EU commitments on climate change and biodiversity protection.