Introduction
On August 27, 2025, Kyrgyzstan marked a major milestone in its economic and political history by commencing underground gold mining at the Kumtor deposit. This mine, located in the Tien Shan Mountains near the Chinese border, is one of the largest gold reserves in Central Asia. For decades, Kumtor has been at the heart of Kyrgyzstan’s mining sector, contributing a significant share of its GDP and serving as a lifeline for state revenues. The decision to launch underground mining comes after years of political battles, legal disputes, and environmental controversies that culminated in the nationalisation of Kumtor in 2021. The new chapter in its operations has been presented not only as an economic breakthrough but also as a matter of national pride and sovereignty.
Historical Background And Nationalisation Of Kumtor
Kumtor began operations in 1997 under the ownership and management of Canada’s Centerra Gold. From its inception, the mine quickly became the single largest contributor to Kyrgyzstan’s industrial output and a dominant source of foreign exchange. However, its history was marred by allegations of corruption, mismanagement, and environmental destruction. Over the years, glaciers surrounding the mine suffered damage from extensive open-pit operations, and toxic spills raised concerns among local communities and activists.
The nationalisation of Kumtor in 2021 marked a dramatic turn. President Sadyr Japarov, who had long campaigned for greater state control of national resources, spearheaded the process. He argued that foreign control over the mine had deprived the Kyrgyz people of their rightful share of profits and had endangered the environment. A special law was passed allowing temporary government control, and soon after, Kyrgyz authorities assumed full ownership of the mine. This bold step was both controversial and symbolic. For some, it was a reclaiming of sovereignty; for others, it was a risky gamble that could isolate Kyrgyzstan from international investors.
Transition To Underground Mining
Following nationalisation, the Kyrgyz government began preparing to shift Kumtor’s operations from open-pit to underground mining. By 2025, over 1,600 meters of tunnels had been constructed, setting the stage for a major technological and logistical transformation. The underground project has been designed to extend for at least 17 years, ensuring a long-term stream of production for the country. The newly developed underground reserves added 147 metric tonnes of geological gold to the nation’s balance sheet.
At current market prices, with gold trading above 3,000 US dollars per troy ounce, these reserves represent a potential value of nearly 14 billion dollars. This not only underscores the financial significance of Kumtor but also highlights the strategic foresight in expanding its lifespan through underground development. The government has further indicated that the mine’s life could stretch to 40 or even 50 years if underground works and tailings reprocessing are maximized.
Unlocking Potential In Tailings
An important component of Kumtor’s long-term plan lies in its massive tailings pond, where decades of mining have left behind substantial volumes of residual material. Government estimates suggest that the tailings contain over 100 metric tonnes of gold that can potentially be recovered using modern processing technologies. If fully exploited, this could add billions more to state revenues. The initiative to reprocess tailings demonstrates a shift toward resource efficiency, ensuring that previously discarded material is turned into new economic value.
Economic Impact On Kyrgyzstan
Since taking over Kumtor, the Kyrgyz government has reported robust financial returns. Between May 2021 and the end of 2024, revenues from the mine reached approximately 3.4 billion dollars. Net profits were over 1.2 billion dollars, with nearly 900 million dollars transferred to the state budget through taxes and other mandatory payments. Dividends worth more than 400 million dollars were also paid into government accounts.
Kumtor remains the largest contributor to Kyrgyzstan’s economy, despite slight declines in production from 13.6 tonnes in 2023 to 12.6 tonnes in 2024. The gold revenues have been instrumental in funding social programs, healthcare, education, housing, and infrastructure. Moreover, the government has directed portions of the income toward military modernization and technological development. President Japarov has consistently argued that the mine is not just a source of wealth but a tool for national development.
Environmental Considerations And Sustainability
A central argument for moving to underground mining has been the environmental benefits. The previous open-pit methods were heavily criticized for damaging glaciers and creating extensive waste. Underground operations, by contrast, are expected to reduce ecological disruption. Kyrgyz leaders have framed this transition as a step toward greater sustainability, protecting natural resources while still generating revenue.
Nevertheless, underground mining also carries risks, such as managing water infiltration, ensuring worker safety, and maintaining structural stability at high altitudes. The government has pledged to adopt best practices to minimize environmental hazards and has emphasized that preserving Kyrgyzstan’s mountain ecosystems will remain a priority.
Political And Strategic Importance
For President Japarov, the success of Kumtor is personal as well as political. Years before assuming office, he was imprisoned for his role in protests against foreign control of the mine. His political rise was deeply intertwined with demands for greater national ownership of Kumtor. The underground mining launch thus symbolized not only economic progress but also the fulfilment of his long-standing vision.
The event was celebrated with great fanfare, with Japarov declaring that Kumtor would continue to serve the Kyrgyz people for decades. His framing of the mine as a national asset and symbol of sovereignty reinforces his political legitimacy and strengthens his image as a leader who delivers on promises of resource nationalism.
Challenges Of High-Altitude Mining
Kumtor’s location in the Tien Shan Mountains makes it one of the highest-altitude mines in the world, at more than 4,000 meters above sea level. Such conditions pose serious operational challenges, including extreme weather, logistical difficulties, and health risks for workers. Transitioning from open-pit to underground mining in such a harsh environment requires advanced technology, experienced personnel, and substantial investment.
Ensuring safety standards, preventing accidents, and maintaining consistent output will test the government’s management capacity. Critics argue that without sufficient international partnerships or expertise, Kyrgyzstan could struggle to maintain efficiency. Supporters counter that the state has already demonstrated effective management since nationalisation, making it capable of overcoming these hurdles.
The Broader Economic Context
Gold is not just a strategic asset for Kyrgyzstan but the foundation of its broader economic stability. High global prices for gold in recent years have allowed the country to run fiscal surpluses, improve its tax base, and expand public spending. Alongside Kumtor, new projects at Jerooy, Taldy-Bulak, and Tokhtonysay are being developed, further strengthening the mining sector. Kyrgyzstan is also seeking to diversify into coal and critical minerals, with ambitions to supply materials essential for global energy and technology transitions.
Prospects For The Future
Looking ahead, Kumtor’s underground mining plan represents a multi-decade strategy. The 17-year projection is just the beginning, with additional reserves and tailings suggesting an even longer lifespan. If properly managed, the mine could operate for half a century more, ensuring that it remains the backbone of Kyrgyzstan’s economy for generations.
However, the ultimate success of the project will depend on several factors. These include maintaining environmental sustainability, ensuring transparency in revenue distribution, reinvesting profits into national development, and balancing political narratives with operational realities. If these challenges are met, Kumtor could become a case study of how resource-rich countries can assert control over their assets while securing long-term benefits for their people.
Conclusion
The launch of underground gold mining at Kumtor in 2025 is far more than a technical milestone. It represents the culmination of decades of struggle over resource control, environmental accountability, and national sovereignty. It reflects Kyrgyzstan’s determination to transform its natural wealth into long-term prosperity while reducing ecological harm. The project has already contributed billions to the economy, and its potential remains immense.
Kumtor now stands as a symbol of Kyrgyz pride and independence. Yet, with that symbolism comes responsibility. The state must navigate technical challenges, environmental risks, and the expectations of its citizens. If it succeeds, Kyrgyzstan will not only have secured the legacy of Kumtor but also demonstrated how resource nationalism, when carefully managed, can fuel sustainable development and strengthen national identity.
