The translation in this is not great but it seems they are p**ing other people off as well
The government declared the outbreak of preparation for the next competition for the field Dzheruy. State Geology Agency begins to prepare the conditions of the upcoming contest. Officials hope to sell became toxic assets on the condition that the future buyer will assume all risks in international arbitration proceedings with the former license holders - JSC "Jerooyaltyn", 40% of which, incidentally, is in the hands of the state "KyrgyzAltyn."
The second part of the ballet Marlezonskogo
In this case, the government set up something so optimistic that seems to hurt it or amnesia, or competition launched for a particular party.
Recall organized last year's competition failed miserably. Policy failure, after a contest was declared invalid due to lack of potential buyers, argued, though, and could predict.Then the government hoped to gain for deposit $ 100 million, but at the last moment locals citing of pseudo stated what good is worth at least $ 300 million
Naturally, such a turn of events frightened all companies that eyes at gold mine. They have already presented, as will give the government put $ 100 million, and then the locals will demand more and more, blocking the road. Cabinet itself too sweaty after field appraisal method "finger in the sky": then opponents and members would certainly have said that the government make a bad bargain, and there were no corruption.
It is worth noting that the previous government was selling time deposit, which is the subject of dispute in international arbitration. After all, the owner of 60% shares of "Jerooyaltyn" sure let through a lot of years, but the court to win.
Recall that in 2010 State Geology Agency revoked license. While former members of the interim government, in particular, Beknazarov seriously affect the solutions departments. "Bulldozer Revolution" in each company was looking for traces of Bakiyev, "Jerooyaltyn" was no exception.
Sword of Damocles 400 million
Then began the trials in Kyrgyzstan. First, plaintiffs sought to prove the illegality of government regulations, then they wanted to challenge the revocation of the license itself. Case reached the highest court, Kazakh investors won the first two. The Supreme Court took a political decision, deciding in favor of the state agency. Then they decided to defend their rights in an international court.
Most likely, it was the most powerful argument why last year's competition was not held. Not found not able to assume the risks and costs multimillionaires who would dare to please and officials, and to sue the previous licensees evaluate their damage at approximately $ 400 million (nested to about $ 200 million and lost profits).
Toxic asset
The lesson from this situation, the state apparently has not learned. Previous investors continue to assess their damage in a lump sum, a lawsuit in the International Court in Washington did not take, because it may be the subject of bargaining. Consequently, at the upcoming competition will cater to potential investors the government dumps millions in budget plus creating some social fund to support the local community. And also go to negotiate with Kazakh shareholders "Jerooyaltyn."
As a result, the amount would be so big that it did not meet expectations. First, in gold need to invest more. Secondly, the happiest times for miners passed in 2011, when an ounce of the precious metal was worth more than $ 1700. Now hovers around $ 1250 - $ 1300. And seek up prices still do not want. And in Kyrgyzstan gold mine becomes unprofitable, according to estimates of geologists, at a cost of less than $ 1200.
Experts do not forget also that with each new cast doubt competition or transfer of a license Dzheruy loses investment appeal. Passing from hand to hand field akin to the girl of easy virtue - a married no one will.
Moreover, if the competition is once again a failure, the government itself will not look in the best light, because the risks can and should calculate in advance. But opponents and members will find another excuse for fun.If on the horizon loomed potential investors, in Kyrgyzstan history repeats itself: the contest announced, knowing the result.
But the prime minister in an interview Djoomart Otorbaev "WB" says the opposite: no company until the government with a proposal for the competition did not come.
Geology found out - against the Cabinet
Meanwhile, shareholders' Jerooyaltyn "addressed the Association of Miners of a proposal to hold consultations to resolve the dispute between the investor represented Consolidated Exploration Holdings and the state. Having traveled to the field and examining documents, members of the association have come to the conclusion that the most beneficial remains peaceful settlement of the conflict: the government reserves the right for "Jerooyaltyn" gold mine, Kazakh investors withdraw the claim.
In an interview with "WB" head of the association Orozbek Duisheev said that the most important thing in this matter - to gain time to start as soon as possible field, especially in the troubled state budget. And in a situation where "KyrgyzAltyn" complains financial condition and wants to get a license to increase the mineral resource base.Would not refuse to state-owned companies and from Jeruy. Therefore, geologists believe that the government contradicts itself.
He recalled that the start mining gold going back to 1991, so the default of government regulations on the transfer of mine Kyrgyz Mining Plant was a fatal mistake. Work in 1992-1996, a little-known company "Morrison Knudsen Gold" at Jeruy introduced corruption in gold mining. Aggravated the situation Kurmanbek Bakiyev family partnership with Boris Berezovsky in 2005-2006, when he had to urgently look for a new buyer to avoid spilling reputation friendship with notorious oligarch. Trying to resell mine in 2009, suspending the license of the "Jerooyaltyn" only put an end to work at the mine and gave rise to the long-running dispute with the state.
Following the Association of Miners on the benefits of the peace agreement the Ministry of Justice began to speak. Naturally, it examines the conflict from the perspective of international arbitration. A court only two or three years will determine jurisdiction: whether the right in New York to consider the claim. Arbitrators will then for the trial itself, which may last for several more years.
Consequently, all the while over Kyrgyzstan will hang the sword of Damocles. And all potential investors have to negotiate with "Jerooyaltyn", because of land allotment was issued for 49 years.And the government annulled just right field development, but all infrastructure located there also belongs to "Jerooyaltyn."
As a result, the Ministry of Justice decided that "the presence of international investigation is a powerful impediment to the effective conduct of the competition." Office proposed the establishment of an interagency commission that would consider the possibility of a peaceful settlement and its terms. "Ignoring the letter can also be used in international arbitration as an argument against the government," - wrote the Minister of Justice Almambet Shykmamatov the government.
In this Djoomart Otorbaev believes that "Jerooyaltyn" on general grounds may participate in the competition. But then it turns out kickback. Or the company would be at a disadvantage, since already invested nearly $ 200 million and will be forced to pay more for the right to develop the field that does not pay for the investment. Other participants will have to lay out on the competition, and then to negotiate with shareholders "Jerooyaltyn." Consequently, you can read this article from the beginning.