announcement out on andash, page-4

Kyrgyz Government calls for Parliament to
reconsider resolution against development
of Andash
Summary
The Government of the Kyrgyz Republic has asked the country’s
Parliament to reconsider a resolution of last June against the
development of the Andash Gold-Copper Project.
Following the request, made last week to a meeting of the
Kyrgyz Parliamentary Committee on Development of Economic
Sectors, the Committee has sought clarification of the
Government position by 10 April.
Kentor Gold Limited (“Kentor Gold” or “the Company”) owns 80%
of the Andash project which, while development-ready and
supported by the Kyrgyz Government, requires the formal
approval of the local community. Upon receiving final approval
and gaining site access, the Company will commence a 3 month
geotechnical investigation program and then proceed with the
construction program.
Kentor Gold Managing Director Simon Milroy welcomed the
progress towards the project’s development.
“It is good to see the Parliamentary Committee and the
Government working together to resolve the issues with the
development of the Andash deposit,” Mr Milroy said.
“The clear articulation of their positions on the development of
the project is required from both the Government and
Parliament before the full support of the local community can
be obtained.”
Kentor Gold Limited www.kentorgold.com.au
14 March 2012 Page 2 of 2
At a meeting of the Kyrgyz Parliamentary Committee on Development of Economic Sectors held on 6
March, Government representatives distributed an official letter stating that the Government finds it
“necessary to initiate reconsideration of the resolution of the Jogorku Kenesh (Parliament) of
the Kyrgyz Republic #802-V ‘On Andash Gold Deposit’ dated June 24, 2011.”
Parliamentary resolution #802-V recommended that the Government cancel the mining licence and land
allotment of Andash Mining Company. (The resolution followed misinformed claims of potential
environmental damage and impact on the local community, after which the Government asserted that
the Andash project was in full compliance.)
The minutes of this meeting have now been released.
The meeting was attended by thirteen Members of Parliament, two members of Cabinet including the
Minister for Economic and Antitrust Policy, representatives of Andash Mining Company, and the press.
Most Committee members spoke in support of the development of Andash on the following grounds:
? Contribution to the national economy
? Contribution to the state budget
? Creation of employment
? Contribution to local development
? Speed of development
? Reputable investor with funds to hand
? Legal consequences of cancelling licence without adequate grounds
? Impact on the investment climate as a result of Government action or inaction
? Comprehensive social programme
Two Members of Parliament spoke against the project. One spoke on environment grounds but
appeared to be confused on project details, for example stating that the mine is to be located 700m
from the village of Kopuro Bazar, when it is actually 2.3 km from the nearest dwelling. A second spoke
against the project on the grounds of anticipated difficulties in securing the unanimous support of local
residents.
In a written resolution, the Committee noted that since the adoption of Parliamentary Resolution 802-V,
Kentor Gold has made a number of additional proposals aimed at reaching a mutual understanding with
the local community. Further, the Committee noted that delays in resolving the issue are contributing to
social tension in the region, which is evidenced by numerous appeals from local residents presenting
views for and against the development of the deposit.
In conclusion, the Committee resolved that the Government should clarify its position in relation to the
future of the Andash deposit, and that it should undertake all appropriate measures necessary to inform
the Committee by 10 April, 2012.
For further information contact:
Mr Simon Milroy
Managing Director
Phone: (07) 3121 3206
Email: [email protected]
Mr.