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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


 

Blog entry | March 28, 2012

Centerra Gold is being criticised for its activities in protected areas at the Kumtor gold mine and at another project in Mongolia. More lessons to be learnt for the European Bank for Reconstruction and Development.

Bankwatch in the media | March 5, 2012

The Kyrgyz government desperately needs the money generated by gold mining. But can it live with the growing international criticism?

Blog entry | February 23, 2012

Following the publication of one official and one shadow report on the Kumtor gold mine, Kyrgyz authorities have responded to the calls of Bankwatch and other environmental groups to take a tougher stance on the Kumtor mining operations. The EBRD should follow their example.

Bankwatch in the media | February 17, 2012

L’entreprise minière Kumtor Gold Mine est aujourd’hui montrée du doigt par deux études sorties consécutivement et qui l’accusent de négligences graves aux conséquences nuisibles pour le reste de la région centrasiatique. Dans un contexte géographique où l’eau constitue un enjeu majeur, le Kirghizstan bénéficie d’un avantage stratégique puisqu’il est placé en amont des autres pays. Si la gestion des ressources hydriques se fait théoriquement en concertation avec les autres partenaires de la région, ces deux rapports montrent que les relations sont conflictuelles.

Central Asia

Publications

Bankwatch Mail | March 13, 2012

It is coming up for three years since the EBRD's 2009 Annual Evaluation Overview Report “alerted Management to develop a new Operation Policy to cover all forms of non-energy related extraction of natural resources (mining policy)”. The EBRD does not appear to have been in any great rush with the preparation of this policy, and one has to wonder how long the bank will allow for the new policy to be consulted with the interested public. More importantly, how influential will public input be in setting the policy objectives and requirements?

Study | January 31, 2012

This report, authored by hydrogeologist and geochemist Dr. Robert Moran, reveals that Canadian company Centerra Gold, owner and operator of the Kumtor gold mine, has been contaminating local waters and glaciers while hiding evidence of such negative impacts from public oversight.

Briefing | January 31, 2012

The briefing summarises findings of a report, authored by hydrogeologist and geochemist Robert Moran. The report reveals that Canadian company Centerra Gold, owner and operator of the Kumtor Mine, has been contaminating local waters and glaciers while hiding evidence of such negative impacts from public oversight.

Policy comments | August 5, 2011

As the Kyrgyz Republic is an Early Transition Country with limited capacity for additional external borrowing and in light of recent political events in the country, Bankwatch emphasizes that the EBRD must carefully weigh and analyse any project it considers for financing in this particularly vulnerable country.

Policy comments | November 20, 2010

The document summarises the goals on which, according to Bankwatch, a future EBRD mining sector strategy needs to be based if the EBRD wants to support sustainable development. It includes specific recommendations to help ensure that EBRD investments in the mining sector bring real benefits for communities, avoid environmental and social harm, reduce CO2 emissions and do not increase countries' dependence on commodities.