Tajikistan – Mining Equipment and ServicesTajikistan-Mining
Overview
Unit: USD thousands| 2014 | 2015 | 2016 | 2017 | |
| Total Market Size | 1,532,000 | 1,345,000 | 1,195,300 | 956,200 |
| Total Local Production | 703,000 | 803,000 | 928,000 | 1,011,220 |
| Total Exports | 470,200 | 436,200 | 631,500 | 920,000 |
| Total Imports | 1,300,000 | 978,000 | 898,800 | 865,000 |
| Imports from the U.S. | 2,000 | 3,000 | n/a | n/a |
| Exchange Rate: 1 USD | 4.82 | 5.51 | 7.18 | 8.80 |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Tajikistan is a mineral rich country with more than 600 documented deposits of some 50 different minerals including silver, gold, lead, zinc, antimony, mercury, molybdenum, tungsten, iron, tin, boron, strontium, fluorspar, rock salt, precious and semi-precious stones, bituminous coal, anthracite, graphite, mineral wax, and phosphates.
Mining accounted for 22.6 per cent of the total industrial sector in 2017. The mining sector’s share of GDP was 5.5 per cent in 2016. In 2016, the state budget revenue from the extractive sector amounted to $146 million or 7.5 per cent of the revenue from tax, non-tax revenues and grants. According to the State Statistics Agency, the growth rate of the production in the extractive industry for 2014-2016 was 214.3 per cent. In 2016, exports of mineral resources were estimated at $307.2 million, which grew 34.2 per cent compared to 2015. Exported mineral products totaled $239.1 million and included lead and zinc, antimony, copper and silver concentrate.
Between 2007-2015, $700.3 million has been invested in the mining sector, with a Chinese mining company making the largest investment of $100 million in the development of Pakrut LLC and the construction of a Chinese metallurgical plant to mine lead and zinc deposits of Zarnisori Shimoli located in the eastern Tajikistan district Vahdat. The main countries that have invested in the mining sector of Tajikistan are the United Kingdom, China, Iran, Russia, Switzerland, and France. As of 2016, nearly 9,000 people were employed in the mining sector.
Development of the sector will require modern technology, exposure to market-oriented management, increased human capacity, better transportation links, and comprehensive surveys on the full potential of Tajikistan’s deposits. Most of the mining surveys and research currently in use were conducted during the Soviet era, and may be outdated. The Tajik government has classified this information as a state secret, severely limiting access. The Chief Geological Department of Tajikistan expects to make geological survey information available to the public through a Geological Information Center by 2025.
Role of Government
In theory, the Tajik government supports expansion of the mining sector, diversification of mining practices, and development of existing mines. It has pledged to simplify procedures for obtaining exploration and mining permits. In practice, however, cumbersome bureaucratic procedures and wavering political will may delay permit approval by months or years. Currently, publicly available information about Tajikistan’s mineral resources is minimal, because the government considers much of this information to be a state secret.In 2014, the Tajik government established the Commission on Approval of Mining Projects. The First Deputy Prime Minister of Tajikistan heads the Commission and reports directly to the President. The Commission has the right to either directly select companies to receive extractive rights, or to announce tenders to develop specific natural resource deposits.
Domestic Mineral Consumption
Tajikistan’s extractive industries produce primarily for export, with the notable exceptions of raw materials used for cement production, gold used to bolster national currency reserves, and coal, oil, and natural gas consumed domestically for energy.Sub-Sector Best Prospects
| HS Code | Item description |
| 8428 | Lifting, handling, loading and unloading machinery |
| 8429 | Self-propelled bulldozers, angle dozers, graders, levelers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers. |
| 8430 | Other moving , grading, leveling, scraping, excavating, tamping, compacting, extracting or boring machinery for earth, minerals or ores; pile drivers and pile extractors. |
| 8431 | Parts for use solely or principally with the machinery of headings 84.25 to 84.30. |
| 8704 | Motor vehicles for the transport of goods |
Opportunities
SilverAccording to Tajik government estimates, explored and forecasted reserves of silver are more than 100 thousand tons. They are mainly located in the north of the country – in the Karamazar mining area, where there are polymetallic deposits of Great Konimansur, Konimansur, Kanjol, and others. The Great Konimansur silver, lead and zinc deposit is located in the Sughd administrative division and province of Tajikistan, 51 km northeast of the provincial capital of Khujand. The area is seismically active (Modified Mercali Scale 8). According to the Chief Geology Department of Tajikistan data, the reserves of the Great Konimansur deposit amount to 70 thousand tons of silver. In addition to silver, the mine is rich in lead and zinc.
Gold
Tajikistan ranks 67 in the list of the 100 largest countries holding gold reserves. Tajikistan holds 90 per cent of its foreign exchange reserves in gold and 10 per cent in currency. According to estimates from the Tajik Academy of Sciences, gold deposits are estimated at 429.3 tons. In 2017, Tajikistan set a record for gold production and produced 5.5 tons of the precious metal. All the produced gold was bought by the National Bank of Tajikistan. In 2018, the government of Tajikistan expects gold production to increase to 6.6 tons, and by 2022 the annual gold production volume will be increased sevenfold compared to 2012.
Tajikistan’s largest gold mining operation is located in Sughd Province, with most mines located southeast of Gharm, in the Pamir Mountains, in the Yakhsu Valley, or in Chkalovsk and Jilau. The Tajik-Chinese joint venture Zeravshan produces 70 per cent of all gold in the country, and its annual volume of gold production in 2016 was 3.3. tons. Over the past nine years, the Chinese mining company which owns 75 per cent of Zeravshan shares has invested $306 million in the modernization of the enterprise and built two concentrators and a refining shop.
In December 2016, the Tajik Aluminum company TALCO obtained a 25 year license for the development of gold-bearing deposits Skalnoe and Koncoch that are located in Ayni district of Sughd region. According to TALCO estimates, gold reserves in these fields exceed 55 tons, and silver reserves exceed 44 tons.
In April 2018, the Chinese firm TBEA Mining obtained a permit for mining gold in Upper Kumarg in Ayni district of Sughd region. Gold reserves in the Upper Kumarg deposit are estimated at more than 30 tons. TBEA also has a license for mining gold in Vostochniy Duoba located in Ayni.
Coal
There are 35 known coal deposits in Tajikistan, with cumulative geological reserves estimated at 4.5 billion tons. There are 18 companies operating in this sector. The government is especially eager to develop this sector in the hope of alleviating Tajikistan’s chronic energy crisis, and has already opened a coal-fired heating/power plant in Dushanbe, with plans for more throughout Tajikistan. 208 industrial and power enterprises use coal as an alternative technological fuel, replacing natural gas. The production of coal had a steady growth in the past years and was 1.36 million tons in 2016 and 1.70 million tons in 2017. Dushanbe Central Heating Power Plant II accounts for almost 50 per cent of the total consumption. Domestic production meets 88 per cent of domestic coal consumption needs.
The main share of coal mining is accounted by the following enterprises:
- Fon Yagnob mine, a subsidiary of SUE Angishti Tojik (57.7%)
- Talco-Resource LLC (13.1%)
- Angishti Ziddi mine, a subsidiary of SUE Angishti Tojik (11.2%)
- OJSC Angisht (5.6%)
- The Nazar-Aylok Coal Mine, a subsidiary of SUE "Angishti Tojik" (5%)
- Sayod Ltd. (3.2%)
- Other enterprises (4.2%)
Cement
There are 13 small and large enterprises operating in Tajikistan with a total production capacity of 5 million tons of cement per year. More than 80 per cent of the total volume of cement is produced by three large enterprises established with Chinese investment: Chungtsai Mohir Cement LLC (Yavan district), Huaxin Gayur Cement (Yavan district), Huaxin Gayur Sughd Cement (Bobojon Gafurov district). In 2017, 3.1 million tons of cement was produced in Tajikistan. Tajikistan currently fully meets its domestic cement needs, and since 2015, sells surpluses of production to neighboring countries. In 2015, only 500 tons of cement were exported, in 2016 this figure rose to 282,000 tons, and in 2017 to 1.022 million tons.
According to the Tajik Ministry of Industry, Tajik cement is exported to Uzbekistan, Kyrgyzstan and Afghanistan. Since the beginning of the year, 456,000 tons of cement have been exported to these countries, which is 40 per cent of the total output of this product.
Enterprises of Tajikistan produce the most popular brands of sulfate-resistant cement - M400 and M500, which are capable of withstanding loads exceeding 400 and 500 kg / cm2, respectively.
Mercury and Antimony
Primary deposits of mercury and antimony are located within the Zerafshan and Gissar valleys and in the Pamir Mountains. The Jijikurt Deposit, the Shing and Magian Group Deposit, and the Konchoch deposits are estimated to be of sufficient size to support industrial development.
Ores in these deposits are complex and can include both mercury and antimony; ores in Konchoch, however, contain mostly antimony. The U.S.-owned Anzob Ore Mining and Processing Enterprise is situated at the Jijikurt deposit of Sughd region. Anzob owns a license for the extraction of anitomony valid from March 2015 through March 2027. In 2015 and 2016, the company produced 467 thousand tons and 457 thousand tons of antimony respectively.
Nepheline syenite
Nepheline syenites in the Turli deposit (Gharm zone) could be processed to produce alumina, cement and other chemical products such as potash, natrium metasilicate and calcium metasilicate. Industrial reserves are estimated at approximately 300 million tons.
The Tajik Alumunim Company (TALCO) is working with the Chinese Chemical Production Company (CCPC) to build a large scale nepheline processing facility in Tajikistan’s Yovon District According to unofficial data alumina content in the nepheline raw material is about 10-15 percent. The nepheline processed in Yovon could supply both the Chinese-owned cement factory in Yovon and TALCO, which currently depends on alumina imported from Azerbaijan.
Tin
Tin has been mined at the deposit in Mushiston, Sughd since the Bronze Age. The Mushiston Tin Ore Plant was established to exploit the deposit, which is rich in both copper and tin, forming a natural bronze alloy.
Lead and zinc
Tajikistan’s zinc reserves are located at the Altyn-topkan and Ak-tash deposit. There is an ore processing facility located at the latter deposit. According to expert estimates, more than 1 billion tons of lead-zinc ores have been explored only at the Great Konimansur deposit and the Altyn-Topkan ore fields.
Tungsten (W)
Tajikistan’s primary Tungsten lode is at the Mayhura deposit, 95 kilometers from Dushanbe. The Tajik government estimates the deposit could profitably produce 150,000 tons per year. In 2017, Talco Fluorite LLC received a license for the production of tungsten at the Myahura deposit in Varzob district of Tajikistan (valid period from May 2017 through May 2042).
Bismuth (Bi) and Iron (Fe)
The Chokadambulak deposit contains significant amounts of Bismuth and Iron.
Nickel (Ni)
The Gumas deposit in the Vanj district is a major source of nickel ore.
Boron (B)
Boron deposits have been located in Akarhar and in Murgab, both in the Badakhshon region.
Web Resources
Ministry of Industry and New Technologies
(http://www.sanoat.tj/ru/view_soha.php?cat=1)
Main Geology Department of Tajikistan
(http://www.gst.tj/)
Extractive Industries Transparency Initiative
(https://eiti.org /)
Exploration Services in Tajikistan
(http://www.cac-geoportal.org/en/index.php/mining-experiences/exploration-services/exploration-serv-tj)
Tajikistan Mining Laws and Regulations
(http://books.google.com/books/about/Tajikistan_Mining_Laws_and_Regulations_H.html?id=3Y8TefmnR-IC)
IFC: Unlocking Tajikistan’s Mining Potential
(http://www.ifc.org/wps/wcm/connect/region__ext_content/regions/europe+middle+east+and+north+africa/ifc+in+europe+and+central+asia/countries/unlocking+tajikistan+mining+potential)
Ruby, Emerald, and Spinel mining areas in Central Asia
(http://www.fieldgemology.org/gemology percent20tajikistan percent20ruby percent20spinel percent20pamir.php)
Pakrut Gold Mine in Tajikistan
(http://www.cnmc.com.cn/detailen2.jsp?article_millseconds=1318946114079&column_no=011501)
Geological map of Tajikistan
(http://gst.tj/ru/content/geologicheskaya-karta-respubliki-tadzhikistan)
Geological Map of Tajikistan
(http://www.geoportal-tj.org/index.php/maps/geological-map)
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