Wednesday, January 16th 03:28 PM IST

Kumtor to produce 18.7 tons of Gold next year

# Kyrgyzstan gold  # Kumtor  # gold reserves  # Centerra  

The company planned to invest in general about $95 millions in the Kumtor deposit in 2013. Some $13,5 million is planned to be spent on exploration work.

BISHKEK(BullionStreet): Kyrgyzstan's flagship Kumtour gold mine is expected to produce nearly 19 tons of gold next year, said Canada's Centerra Gold, the mine operator.

In a statement, Centerra said gold production on the Kumtor deposit will reach 18,7 tons this year. The statement came a day after Kyrgyzstan acknowledged cut in 2012 GDP due to output collapse at Kumtor.

Centerra said by late 2012 about 9,8 tons of gold have been produced on the Kumtor deposit, and the forecast for 2013 is to produce 17,1-18,7 tons.

The company planned to invest in general about $95 millions in the Kumtor deposit in 2013. Some $13,5 million is planned to be spent on exploration work.

Earlier, Kyrgyzstan's National Statistics Committee said gross domestic product shrank by 0.9 percent in 2012 after a 6 percent rise a year earlier, official statistics showed on Monday.

Kumtor alone accounted for 12 percent of Kyrgyzstan's GDP and more than a half of its exports in 2011.

The venture was forced to cut its 2012 production outlook to 415,000 to 425,000 ounces of gold from a previous estimate of 450,000, due to ice movement at the open-pit mine located in a high-altitude permafrost area near the border with China.

Without taking Kumtor's output into account, Kyrgyzstan's GDP would have actually expanded by 5 percent last year against a 6.3 percent rise in the same comparison in 2011, official statistics showed.

From January through November 2012, Kyrgyzstan exported 2.3 times less gold than in the same period of 2011, official statistics said without giving absolute figures.

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