- In response to a question from a delegate from Bishkek, the president noted that the situation with Jerooy is fundamentally different from Kumtor, and here’s why.
According to Japarov, the return of Jerooy cannot be carried out in the same way it was done with Kumtor. He described how Centerra Gold gained control over Kumtor: “They simply took the deposit and received $475 million secured by the mine itself. Of this amount, $275 million went to building a plant, while the remaining $200 million ended up in their pockets. Then they paid off this loan by processing gold. We returned Kumtor to the state because they didn’t invest a single tyiyn of their own funds, but used a scam,” the president explained.
Furthermore, Japarov emphasized that Jerooy has been resold several times, making its return to state ownership problematic. “The state took the deposit back and then sold it again, incurring losses of about $500 million. In 2014 or 2015, it was sold again, paying $100 million, but that money quickly disappeared like water in sand. This is our fault, a lack of control on the part of the state and its leaders,” he added.
Additionally, he noted that investors invested about $350–400 million in Jerooy and built a factory, which he opened via video link with Vladimir Putin in the year he came to power. In total, investors spent about $1 billion, and now the enterprise is operational. “Taking it away now would be unfair,” Japarov stated.
He also mentioned that, despite the lack of an official stake in Jerooy, the country benefits. “The company pays about 5 billion soms in taxes and payments annually. In the Talas region, a development fund has been established, and the funds are transferred to the budget of the ayil okmotu where the mine is located,” the president noted.
According to information received later from “Alliance Altyn,” the company transfers approximately 13 billion soms annually in taxes and other payments, confirming the significance of this deposit for the local economy.
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