Kyrgyzaltyn OJSC is the biggest domestic company of the Kyrgyz Republic, specializing in the development of gold deposits, founded on October 15, 1992, as State Consortium Kyrgyzaltyn intended to unite mining companies of the Kyrgyz Republic to maintain operations of the existing companies and to implement the new gold projects.
In accordance with Decree of the President of the Kyrgyz Republic No. УП-175 dated July 23, 1999, «On reorganization of the Kyrgyz State Consortium Kyrgyzaltyn in order to ensure the transparency and improvement of the management structure, State Consortium Kyrgyzaltyn was reorganized by transformation into Kyrgyzaltyn Joint Stock Company.
Currently the Company, together with the joint venture partners, is producing more than 97% of the Kyrgyzstan’s gold. Gold mining accounts for about 10% GDP of the Republic, 40% of industrial production and 60% of exports. The Kyrgyz Republic is ranked to be the third among CIS countries on gold production.
Mission of Kyrgyzaltyn OJSC – to focus on production of precious metals with minimal costs.
Strategic goal is to achieve the maximum generation of profits for the Company, providing the:
increase in gold production and profitability;
expansion and replenishment of the mineral resource base of companies and ensuring commercial reserves;
high level of gold production efficiency;
sustainable development of Kyrgyzaltyn OJSC companies investing in modernization and technical re-equipment;
implementation of metals extraction technology from production wastes.
State-owned shareholding is 100%, the shareholder is the State Property Management Fund of the Kyrgyz Republic.
The structure of Kyrgyzaltyn OJSC composes the production branches:
Refining Factory Factory;
Kyrgyzskoe vzmorye health resort;
Motor transport enterprize;
Kyrgyzaltyn — Kurulush;
Besides, Kyrgyzaltyn OJSC is a shareholder, participant and has an interests share in the following legal entities:
Centerra Gold Inc. — 32,96% share;
Altynken Ltd — 40% of the authorized capital size (capital contribution is 4,000 KG soms). Established on April 5, 2006, for the purpose of the development of the Taldybulak Leftsided gold deposit and exploration of the licensed area.
Integrated Management System Policy in respect of the gold supply chain
The Gold Supply Chain Transparency Policy of Kyrgyzaltyn OJSC complies with the requirements of London Association of Precious Metals Exchange (Responsible Gold Guidance), as well as with Appendix II of the OECD Guidelines.
Kyrgyzaltyn OJSC actively cooperates with government authorities in order to detect the presence / absence of licenses of the counterparties for mining, processing, transportation and sale (trade) and export of precious metals.
Kyrgyzaltyn OJSC conducts the firm policy in regard to identification of precious metals sources and has a right to refuse to purchase them, if they were obtained as a result of illegal mining.
Kyrgyzaltyn OJSC is entitled to refuse from cooperation if precious metals were linked to human rights violations, money laundering and participation in armed conflicts.
operates fairly and transparently;
positions itself against corruption, fraud and money laundering;
supports ethical, moral and social standards;
establishes fair responsible business relationships with all counterparties, employees and stakeholders
Kyrgyzaltyn OJSC implemented the integrated management system policy based on the process Know Your Customer in order to prevent the involvement of Kyrgyzaltyn OJSC in illegal activities associated with mining, processing, transport, trade and export of precious metals in high-risk regions affected with conflicts.
Kyrgyzaltyn OJSC identified the following essential criteria for high-risk supply chain:
The mined gold / refined gold is originated / transported through the high-risk areas affected with conflicts, or areas with human rights violations;
The mined gold must originate from the country with the limited known reserves, preferred, resources or expected levels of the gold production;
The refined gold must originate from the country in which it is known about the gold from areas affected with conflicts or areas with human rights violations;
The Counterparty, delivering the gold, or other well-known mining companies, is in the country, representing high risk of money laundering, crime and corruption;
The Counterparty, delivering the gold, or other well-known mining companies or their beneficiary owners, are politically exposed people;
The Counterparty, supplying the gold, or other well-known mining companies, are active in business with high risk, such as military activities, gambling and casino industry, antiques or art, diamond trade, sects and their leaders.
Kyrgyzaltyn OJSC is striving:
To not establish the relationships with the suppliers associated with any serious violations listed above.
To not allow the direct or indirect assistance to non-governmental armed groups and their affiliates, who illegally:
control the mines, transportation routes, precious metals trade or any other factors in the supply chain;
extort the taxes, money or precious metals at mine sites or other intermediaries in the supply chain.
To not establish the relations and immediately terminate interaction with business partners associated with any institutions and / or individuals that provide direct or indirect support to non-governmental armed groups in operations
To not allow the direct or indirect assistance to unlawful actions of public or private security forces that commit offenses (point 1) or illegally act (point 3), as far as the role of public or private security forces is to maintain the rule of law (protection of human rights, industrial safety of workers, premises and equipment) at mines and / or the surrounding areas and / or along transport routes.
To not establish the relationships and to immediately terminate any interaction with participants in the supply chain, which directly or indirectly support illegal actions of public or private security forces.
To prevent any form of bribes to persons, including public employees, officials, suppliers, contractors or any other organizations, and to resist the extortion of bribes in order to disguise the origin of precious metals, to submit the distorted information about taxes, fees and payments paid to the Republican budget in order to retrieve, process, transport, trade and export of precious metals.
To prevent the money laundering related to mining, processing, transportation, trade and export of precious metals, and to take measures to support the fight against terrorism financing.
To use effective approaches for monitoring of transactions, based on the identified risks in order to prevent any risk of illegal activity.
To store properly and to check carefully all records of precious metals transactions.
To arrange training sessions, seminars and conferences in order to coach employees to this Policy.