President explains how Kumtor mine funds are being spent

Kyrgyzstan's President Sadyr Japarov has detailed the allocation of funds generated from the Kumtor gold mine, addressing public queries about how the revenue is utilized. In an interview, Japarov responded to a question about the perceived lack of personal benefit despite the mine's nationalization.

According to Japarov, the Kumtor mine generates approximately $1 billion in gold extraction annually. He explained that roughly half of this amount is reinvested into the mine's operational costs, including salaries, taxes, parts, and fuel. The remaining portion, which constitutes net profit for the state, is then directed towards various development initiatives.

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If $1 billion worth of gold is mined annually from Kumtor, half of it goes to maintaining the mine. Gold is not mined for free. In other words, only half of this amount is net profit. The other half, sometimes more, sometimes less, goes to operating the mine, salaries, taxes, parts, diesel fuel, and other expenses. The rest is net profit, which goes directly to the state.

"The rest is net profit, which goes directly to the state," Japarov stated, outlining the financial flow. He emphasized that this profit is channeled into significant public projects. Notably, through the State Mortgage Company (MIC), substantial investments are being made in housing construction, with $3 billion allocated for building homes.

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MIC is building houses for $3 billion. Where does this money come from? If 100 schools were built in 30 years, we built 500 schools and kindergartens in 5 years. Is this visible or not? With what money? This is Kumtor's money.

Japarov highlighted a dramatic increase in infrastructure development compared to previous administrations. He noted that while only 100 schools were built over 30 years, his government has constructed 500 schools and kindergartens in just five years. Road construction has also seen a significant surge, with 1,500 kilometers built last year and a target of 2,000 kilometers for the current year, a stark contrast to the previous maximum of 250 kilometers during summer months.

Furthermore, the president pointed to increased social welfare benefits. He mentioned that the minimum pension has risen from 700 soms to 7,000 soms, with plans to increase it further to 8,800 soms. These improvements in pensions and benefits, he asserted, are funded by the revenue generated from the Kumtor mine.

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Last year we built 1.5 thousand kilometers of roads, this year we aim to reach 2 thousand kilometers. The maximum previous indicator was 250 kilometers of roads during the summer season - that was during Bakiyev's time. But we built two thousand kilometers. We are increasing pensions and benefits, right? When I came, the minimum pension was 700 soms, now it is 7 thousand, soon it will be 8 thousand 800. All of this is Kumtor's money.