This appears to be a very important article, but I haven't seen any comments on it. It is a very poorly translated article, but from what I can tell, it appears to be a list of several important questions regarding the Stans Energy disaster in Kyrgyzstan, answered by important stakeholders.
Some of the answers appear to be positive for Stans, but some of them I can't tell. Again, the translation is very hard for me to decipher.
What surprises me is there have been ZERO comments on this article from the message board which was posted a few days ago. Can some of the regulars on this board try to analyze some of the responses to these questions and give your perpsectives? JMInvestor, Schmid, andech, grammadux, and others, can you please comment?
April 9 this year, the Council of the parliamentary majority coalition "Yrys Aldy - Yntymak", headed by a deputy of the faction "Ar-" Kulov, took a very interesting solution - "On certain violations of the legislation of the Kyrgyz Republic to the issuance of the State Agency for Geology and Mineral Resources of the Government of Kyrgyz licenses for mining Kutessay II and Kalesay (LLC "Kutisay Mining"). "
Today, the content of this unique document of its kind and made it to the instructions of the executive commented CEO of LLC "Kutisay Mining" G.Savchenko, executive director of the International Business Council and a member of the Committee on subsoil licensing A.Tungatarov, as well as Senior Associate company "Partner" D.Ubyshev.
- The first fundamental question: how comply with the legislation of the Kyrgyz Republic adopted by the Council of the coalition on the question of individual violations of the legislation of the Kyrgyz Republic in issuing State Agency for Geology and Mineral Resources of licenses for mining Kutessay II and Kalesay for the LLC "Kutisay Mining"?
Senior lawyer of "Partner" D.Ubyshev:
- To begin with, the Coalition Council was established by an agreement on the formation of coalitions of factions "Yrys Aldy - Yntymak" (from 3.09.2012 city). That is, this inner-and vnutrifraktsionny document having narrowly targeted destination.Competence of the Board in accordance with clause 9.4 the agreement, which obviously indicates that your body has a limited range of powers, mainly related to the issues of forming a government and individual procedural issues of the coalition and the government. In particular, it examines the implementation of the agreement by the Government. Given the right to address the socio-economic situation in the country and to make recommendations to the Government of the Kyrgyz Republic and other state authorities, but no more. The right to examine issues relating to the activities of private companies, and take them in management decisions of the Council coalition. This can only be done committees Parliament or the Parliament itself.
IBC Executive Director A.Tungatarov:
- Indeed, the content of the agreement on the formation of coalitions of factions "Yrys Aldy - Yntymak" from 3.09.2012, the law does not give the Council a coalition to address issues relating to the activities of private companies. Accordingly, the decision of the coalition council decided, in essence, an abuse of authority.
General Director of LLC "Kutisay Mining" G.Savchenko:
- Attention is drawn to such an eloquent fact: Coalition Council took this decision after the same question about the cancellation of the licenses of the LLC "Kutisay Mining" was made by deputies of the faction "Ar-" at the meeting of parliament, but the vote was not supported a majority of MPs.
D.Ubyshev:
- I note immediately that the question on which the poll has already taken place at the meeting of JK, may again be on the agenda of the parliament only after six months.
G.Savchenko:
- It turns out that the MPs from the faction of the party "Ar-" trying to illegally cancel licenses of our company, operating on the principle "by hook or by crook."
- Approximately $ 22 billion - this expert assessment of mineral deposits at the deposit Kutessay II and beryllium deposit Kalesay located in the Kemin district of Chui oblast. In any case, it was this huge number is indicated in the introductory part of the decision of the Council of the coalition.
G.Savchenko:
- I believe that MPs are not familiar with the data on balance reserves of rare earth elements on the field Kutessay II, registered in the state balance of the Kyrgyz Republic. If you get to know them, it becomes clear that the $ 22 billion - is far-fetched and unsubstantiated figure. As for the field Kalesay, the process zaverochnyh work carried out by our company, nak beryllium oxide content in the ore was only 36 percent, which indicates a possible non-confirmation of reserves and the absence of such a facility.
A.Tungatarov:
- I wonder whether the expert advice of the Council of the coalition, to which they refer? It would be nice if the Council presented them to us or the LLC "Kutisay Mining".
- The Council of the Coalition emphasizes that the deposit Kutessay II and Kalesay have a functioning infrastructure - roads, electricity and other utilities. Therefore, the license for the development, in the opinion of council, are very attractive to investors.
D.Ubyshev:
- This statement is not true of Deputies. In fact, the license for this field in the last twenty years, issued twice. And both times on the decisions of the Government of the Kyrgyz Republic: in 2006 - the company "Central Asia Metals Group", and in 2009 - the company "Kutisay Mining". The licenses include only those rights of licensees in the bounded area of quarries of these fields.
Savchenko:
- On the alleged functioning infrastructure, which says Coalition Council, the situation is as follows. Processing factory in the village of Ak-Tuz, processed in the Soviet era mined in open pits of these ore deposits, the entire infrastructure and tailings dam number 4 has long passed into private hands. Its current owner - the company "TK" Geo Resource ". Tailing ? ? 1-3 Buurdinskoe and tailings that were used when mining ores Kutessay II, in 2011, transferred to the balance of the private company KHMZ in Orlovka.
Processing plant and the extraction of rare earth metals, located in the village of Clover, and is privately held: in 2011, the company "StensEnerdzhi Kay Gee" bought two main workshops for their production at OAO "KHMZ," and at its base there is LLC "Kashkinsky Plant rare earth elements. "
Referred deputies road runs from the processing plant in the village of Ak-Tuz to career field. It was built during the Soviet era.In fact it is an abandoned road and requiring repair. In two places there are areas that are dangerous for life and health. The road in 2012 was transferred from the administrator of a private company bankrupt "Aktyuz bankrupt" to the company's "Kutisay Mining".
In 2012, the LLC "Kutisay Mining" drafted "Repair technological road quarry - the existing factory", and January 14, 2013 has made it to the Agency on Geology for the state ecological expertise. However, the agency has unreasonably refused three times to conduct this examination, despite the fact that the road has no relation to the license for these deposits. Such is not optimistic, but the real picture.
A.Tungatarov:
- If the government is giving investors a license explored mineral deposits, originally provided infrastructure support, then it would surely be a thoughtful approach to the development of public projects in the mining sector.
The concern is that by exposing an object to the competition agency, except for a career with a particular mineral deposit, immediately offered to investors operating infrastructure. If they do not, in terms of the competition should be included land for the factory, tailings, etc.
Worst of all, the actions of the Agency of Geology, has denied illegally LLC "Kutisay Mining" in the environmental review of the project, the first to suffer the residents of Ak-Tuz who use this road for grazing and other social needs. After all, with any result on the two licenses for the deposits of the LLC "Kutisay Mining" this road, figuratively speaking, will not carry away with them.
It would be much more useful if the Council of the coalition "Yrys Aldy - Yntymak" thoroughly penetrated to all these nuances and ordered the agency to fulfill its obligation to carry out environmental impact assessment of the project, thereby demonstrating genuine concern for local residents. But it turns out that they really do not need it, and they are concerned only with common slogans like " ... extolling the interests of the people of Kyrgyzstan . "
- The decision states that in December 2009 the State Agency for Geology in violation of the Law "On Subsoil" - without competition, but only on the basis of a verbal agreement - LLC "Kutisay Mining" issued a license for the right to use subsoil for mining Kutessay II and Kalesay.
D.Ubyshev:
- And in this case to say that the statement of the Council of the coalition is not true. Licenses for deposits in December 2009 have been issued by the Agency on Geology is not the LLC "Kutisay Mining", and of "Kutisay Mining", 100 percent of the shares of which were in control of the Development Fund of the Kyrgyz Republic. A basis for the issuance of these licenses was the decree number 725 of the Government of the Kyrgyz Republic "On the development of competitive procedures for the granting of rights to use subsurface resources" from December 1, 2009
G.Savchenko:
- LLC "StensEnerzhi Kay Gee", a subsidiary of StansEnergyCorp (Canada), has acquired 29 December 2009 as the winner of the auction 100 percent of the shares of "Kutisay Mining" in the amount of 19,000,000 (nineteen million) pieces on display at the request of the Development Fund of the Kyrgyz Republic for sale at public auction in the form of an auction on the stock exchange CentralAsianStockExchange at a starting price of 1 (one) som per share, in the amount of $ 37,620,000 (thirty-seven million six hundred twenty thousand) soms.
D.Ubyshev:
- All existing regulations and other documents with clear evidence that the LLC "StensEnerzhi Kay Gee" bought the company with licenses to mine Kutessay II and "Kalesay" and has in connection with the status of a bona fide purchaser.
A.Tungatarov:
- This raises an interesting point. The decision of the Board (paragraph 11) states: "In the event that such a transaction the person to whom goes the right to use subsurface data will be a bona fide purchaser, and the country will lose all legitimate chance to return and cancellation of licenses issued illegally." In this case, the Council of the coalition does not want to take into account that the LLC "StensEnerdzhi Kay Gee" since December 2009 is a bona fide purchaser. So why then all this fuss?
- There is yet another indictment of the coalition council statement: "Moreover, the later decision of the said public body in violation of the law those licenses were renewed. And June 15, 2012 U.Tashbaevym (at that time was the Director of the State Agency for Geology and Mineral Resources of the Government of the Kyrgyz Republic) have signed a new licensing agreement. "
D.Ubyshev:
- The accusation sounded before. June 26, 2012 Committee of JK development industries decided to oblige the Agency for Geology revoke the license agreement number 3 and announce the deposit Kutessay II. This decision is the decision of the committee LCD inter-district court of Bishkek on 8 October 2012 was invalid.
Committee of the Parliament of the KR 6 November 2012 appealed the judgment on appeal and then withdrew his complaint.That is, the court's decision to invalidate the decision of the Committee of the Parliament of the KR 26 June 2012 entered into force.
A.Tungatarov:
- It turns out that the Council of the coalition and members of the faction "Ar-" is not considered to be a decision of the court which has entered into force.
- And now for the recommendations adopted by the Council of the coalition. Thus, the government recommended in a week's time to cancel the license of the LLC "Kutisay Mining" on the field Kutessay II and Kalesay for failure to meet the conditions of the license agreements, and within three months to announce a new competition for these deposits.
D.Ubyshev:
- New Law of the Kyrgyz Republic "On Subsoil" changed the grounds for revocation of licenses for subsoil use. Article 27 of the Act does not provide for such a ground for revocation of the license, as the Council has decided coalition.
A.Tungatarov:
- The sad conclusion: the Coalition Council and members of the faction "Ar-" not only did not consider the decision of the court, but also do not want to abide by them adopted the Law "On Subsoil".
- How do you comment on the order of the Council of the coalition, Prime Minister Zh.Satybaldievu consider the adequacy for the post of Director of the State Agency for Geology I.Chunueva in connection with the admitted violations of the law upon the issuance of licenses LLC "Kutisay Mining" for mining Kutessay II and Kalesay?
D.Ubyshev:
- Basically it's just an impossible mission. Let me explain why. The fact that I.Chunuev was appointed director of the agency in 2012, and the Council of the coalition said the violations allegedly committed in 2009.
- Chairman of the National Security Committee B.Zhunusovu also asked to consider the involvement and responsibility of a Vice-Chairman of the National Security Committee - the former head of security of the LLC "StensEnerdzhi Kay Gee."
A.Tungatarov:
- And what of "StensEnerdzhi" became a source of manpower for the State Security?
G.Savchenko:
- Unfortunately, it is not. None of the Vice-Chairman of the National Security Committee in the LLC "StensEnerdzhi Kay Gee" in no position did not work.