Russian Mining Giant Eyes Tajik Silver
Russian Mining Giant Eyes Tajik Silver
The Russian mining company Norilsk Nickel has reportedly expressed interest in developing Tajikistan’s largest silver deposit. But it is likely to ask the Tajik government to create a special economic zone to facilitate its operations at the Bolshoy Kanimansur seam in the north of the country.
NBCentralAsia analysts question the value of such an arrangement for Tajikistan, warning that the state might lose out by establishing a free economic zone in the north, where not only the Kanimansur silver mine, but most of the country’s other functioning, revenue-earning industries are located. They believe this could deprive the government of the modest revenues it currently earns from industries in northern Tajikistan.
Russian media have said Norilsk Silver is keen to take on Bolshoy Kanimansur, which is reckoned to have the world’s fourth largest reserves of silver. It is estimated that developing a mining project here would cost around two billion US dollars.
Tajikistan’s industry ministry says that while the investment project has been on the agenda for a long time, discussions with Norilsk Nickel are still ongoing and the Russian firm has yet to put in a formal offer.
If Norilsk Nickel does submit an official request, it is likely to set two conditions, one of them the free economic zone, and the second that it is allowed a free hand to develop the mine.
Under Tajik laws, free economic zones can be set up with the aim of attracting foreign capital, qualified personnel and newest technologies. Firms and investors operating within the zone enjoy tax breaks on production and profit repatriation, reduced fees for their use of mineral resources, and preferential terms for customs and other administrative matters.
Abdurauf Juraev, an industry ministry representative, said the legislation governing special economic zones would need to be significantly strengthened before any negotiations took place on a zone covering a whole region of the country.
NBCentralAsia analysts are also concerned at reports that Norilsk Nickel wishes to develop the silver-mine project independently of the Tajik state.
Political analyst Saifullo Safarov argues that if the Russian company puts this demand, the Tajik government should reject the whole bid.
“If it doesn’t want to set up a joint venture and have the production process take place inside the country, Tajikistan should turn down this offer of investment,” he said. “There are many such investors who want to take everything away and give nothing back to the country.”
(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region.)
NBCentralAsia analysts question the value of such an arrangement for Tajikistan, warning that the state might lose out by establishing a free economic zone in the north, where not only the Kanimansur silver mine, but most of the country’s other functioning, revenue-earning industries are located. They believe this could deprive the government of the modest revenues it currently earns from industries in northern Tajikistan.
Russian media have said Norilsk Silver is keen to take on Bolshoy Kanimansur, which is reckoned to have the world’s fourth largest reserves of silver. It is estimated that developing a mining project here would cost around two billion US dollars.
Tajikistan’s industry ministry says that while the investment project has been on the agenda for a long time, discussions with Norilsk Nickel are still ongoing and the Russian firm has yet to put in a formal offer.
If Norilsk Nickel does submit an official request, it is likely to set two conditions, one of them the free economic zone, and the second that it is allowed a free hand to develop the mine.
Under Tajik laws, free economic zones can be set up with the aim of attracting foreign capital, qualified personnel and newest technologies. Firms and investors operating within the zone enjoy tax breaks on production and profit repatriation, reduced fees for their use of mineral resources, and preferential terms for customs and other administrative matters.
Abdurauf Juraev, an industry ministry representative, said the legislation governing special economic zones would need to be significantly strengthened before any negotiations took place on a zone covering a whole region of the country.
NBCentralAsia analysts are also concerned at reports that Norilsk Nickel wishes to develop the silver-mine project independently of the Tajik state.
Political analyst Saifullo Safarov argues that if the Russian company puts this demand, the Tajik government should reject the whole bid.
“If it doesn’t want to set up a joint venture and have the production process take place inside the country, Tajikistan should turn down this offer of investment,” he said. “There are many such investors who want to take everything away and give nothing back to the country.”
(News Briefing Central Asia draws comment and analysis from a broad range of political observers across the region.)
