Altynken LLC to sell gold products to Kyrgyzaltyn JSC

Altynken LLC to sell gold products to Kyrgyzaltyn JSC

Altynken LLC to Sell Gold Products to Kyrgyzaltyn JSC Amid Industry Challenges

Altynken LLC, a joint venture between Kyrgyzaltyn OJSC and international investors, has announced plans to sell gold products to its parent company, Kyrgyzaltyn JSC, as part of ongoing operational adjustments. This move comes amid broader challenges facing Kyrgyzstan's gold sector, including the suspension of Kyrgyzaltyn's refinery from the LBMA's Good Delivery List, which has disrupted refining and export capabilities.

Altynken, established in 2006 as a 40%-owned subsidiary of Kyrgyzaltyn, has been developing the Taldy-Bulak Levoberezhny gold deposit in northern Kyrgyzstan since the early 2000s. The project, which includes proven gold reserves of 64.4 tons, has faced delays due to financing constraints and global market conditions. Despite these hurdles, the company has progressed to the construction phase of its mining and processing facilities, with operations expected to support domestic gold production.

The decision to sell refined gold to Kyrgyzaltyn reflects strategic efforts to maintain liquidity and operational continuity. With Kyrgyzaltyn's refinery in Kara-Balta unable to process gold due to its suspended LBMA status, Altynken's output may be redirected to alternative refineries in neighboring countries, such as Kazakhstan or China, pending regulatory adjustments to export duties. This arrangement could mitigate short-term disruptions but highlights the sector's vulnerability to external market governance.

Industry stakeholders, including the Mining and Metallurgical Trade Union, have emphasized the urgency of reinstating Kyrgyzaltyn's LBMA status to stabilize the supply chain and preserve investor confidence. Without resolution, companies like Altynken may face higher processing costs and reduced competitiveness in global markets.

The transaction underscores the interconnected nature of Kyrgyzstan's state-owned and private mining entities, as well as the sector's reliance on international market access. As Altynken advances its production plans, the outcome of Kyrgyzaltyn's efforts to regain LBMA certification will remain a critical factor in shaping the industry's trajectory.

(https://24.kg/english/208118_Return_of_status_of_reliable_/): Return of status of reliable supplier to Kyrgyzaltyn is ...
(https://en.kyrgyzaltyn.kg/branch/info/6): Altynken» LLC - Kyrgyzaltyn