Friday, February 10, 2012

Kyrgyzstan: Gold mining - the case of Kumtor


Both the Mongolian and the Kyrgyzstan mining videos and background were written about in ‘Earth's riches, people's troubles. Mining in Central Asia‘:
The cases in question – the Oyu Tolgoi and Tavan Tolgoi mines in Mongolia and the Kumtor gold mine in Kyrgyzstan – are both important contributors to their country's national income and both receive (or in case of Oyu Tolgoi may soon receive) support from the European Bank for Reconstruction and Development(EBRD). Both, however, pose risks to the local communities that can't be compensated in monetary terms.
These countries are not the only ones facing development with the negative impacts mining brings. In nearby Tibet, villagers managed to halt a mining project being established in one of their sacred mountains.
The topic is controversial; how high a price can a community pay for development of their country? Vladlena Martsynkevych, Bankwatch's Central Asia Officer writes:
The extractive industry can very well contribute to a country’s economic development and bring desired employment and revenues. At the same time mining is a highly disruptive activity with considerable negative impacts on the environment and the livelihoods of local communities. In countries with underdeveloped democratic structures, lack of institutional capacity or simply corruption, the damages can quickly overweigh. Benefits can then bypass the local level and end up enriching the involved companies and – not least - the technological progress and wealth in developed nations.
Written by Juliana Rincón Parra

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