DUSHANBE, July 8, 2014, Asia-Plus -- A tender to choose contractor for development of Tajikistan’s largest silver deposit, Konimansuri Kalon (Big Konimansur) is considered as incomplete as no progress has been made in the work of the Tajik government with the only bidder, a consortium led by Kazakhstan''s Kazzinc, which includes Kazzinc''s parent company Glencore International, as well as Konimansur and Adrasman.

Murod Jumazoda, Chairman of the Main Geology Directorate under the Government of Tajikistan, stated this at a news conference in Dushanbe on July 8.

“There are many reasons for this.  For example, many experts say that development of the Konimansuri Kalon deposit will lead to the fall in the international silver prices,” said Jumazoda.  “Besides, the Tajik government wants that not less than 15 million tons of ore would be processed a year.  I think it is one of the main reasons why the companies have pulled out of the tender.”

Jumazoda, however, noted that it could not be ruled out that the government commission would consider the issue of resumption of the tender.  

The tender for development of the Konimansuri Kalon deposit was announced in November 2009 and on March 2, 2010, the government approved the short list and four companies, namely the Anglo-Australian mining company, BHP Billion, which is a leading global natural resources company, Ziti Mining, which is one of the largest Chinese gold producers, Sichuan Group Ltd (JNMC), which is largest Chinese nickel and cobalt producer, and a consortium that groups Kazzinc (Kazakhstan), Glencore International (Switzerland), Konimansur (Kazakhstan) and ore refinery Adrasman (Tajikistan)  were on the list, but Ziti Mining and Sichuan Group Ltd (JNMC) later pulled out of the tender.

In July 2012, BHP Billion also informed the tender commission that it is withdrawing its bid to develop the Konimansuri Kalon deposit.

This has left only one bidder, a consortium led by Kazakhstan''s Kazzinc which includes Kazzinc''s parent company Glencore International, as well as Konimansur and Adrasman.

We will recall that GosKomInvest official said on July 30, 2013 that if Tajikistan and a consortium led by Glencore International plc’s Kazzinc fail to arrive at a common view on terms of development of the Konimansuri Kalon deposit, the Tajik side may announce another tender to choose contactor for development of this silver deposit.

The Konimansuri Kalon deposit, which is located in Sughd’s Asht province, reportedly has possible silver reserves of more than 70,000 tons.  The deposit is estimated to contain around 1 billion tons of ore and according to expert estimates, one ton of the deposit''s ore contained around 49 grams of silver, with 0.38 percent zinc and 0.49 percent lead.

The Konimansuri Kalon silver deposit project is expected to generate significant benefits for the country and help strengthen Tajikistan’s fiscal resources.  The project is a key part of the government’s strategy to attract private investment and introduce best practices in procurement.  Although Tajikistan has rich deposits of minerals, its remote geographic location and low levels of foreign investment have impeded the development of the mining sector.