In July 1996, the Kumtor Gold Company, a joint venture formed by Comeco with its head office located in Saskatekewan, Canada and the government of Kyrgyzstan, began mining ore at the Kumtor deposit. Cameco Corporation is the world’s largest private sector uranium company and a growing gold producer that is by far the largest foreign investor in the Kyrgyzstan’s economy. The anticipated quantity from its mineable reserves is 18-19 tons per year. Kumtor provided Kyrgyzstan’s citizens with new well-paid jobs and advanced technologies that benefit the republic’s economy. Over 90% of the workforce at Kumtor is Kyrgyzstani with 600 men and women living in the camp at any time.

Initially it was difficult for the Kyrgyzstan government to convince the nation to share their national treasure of the Kumtor deposit, one of the largest single gold finds in the world. About $500 million for the construction of Kumtor were borrowed from major Western banks including Chase Manhattan Bank of New York ($155 mil.), Canadian Export Development Corporation ($50 mil.), European Bank of Reconstruction and Development ($40 mil.), International Finance Corporation ($40 mil.), Cameco ($167 mil.). It will cost Kyrgyzstan as much as 50 tons of gold at the current prices to repay the debt. In a few years after the repayment of the debt, Kyrgyzstan’s national budget will receive $250 million annually, compared to gas revenues of $3 million.

Cameco had faced several environmental disasters, the worst of which took place when a truck carrying two tons of cyanide drove off the road and into the river flowing into Kyrgyzstan’s treasured Lake Issyk Kul. Kumtor now has put in place safeguards that meet North American standards, and implemented an Environmental Management Action Plan and an Emergency Response Plan. In 1999, there were no environmental incidents reported at Kumtor. A Kyrgyz government investigation of environmental safety at Kumtor was undertaken by the Institute of Physics and Geology. They found that environmental disasters are endemic to the method of open pit ore extraction at Kumtor in which explosives and highly toxic poisons are used. In the extraction of the gold, the poison cyanide and other toxic agents are used which can have a highly negative impact on the environment. Explosions lead to an increased number of toxic elements in the air. Comeco also stores toxic waste under the glaciers. As the climate warms, explosives can result in the movement of the glaciers and cause avalanches, which in turn can lead to the terrible consequences.

Today Kyrgyzstan attracts a lot of foreign mining and metallurgic companies to a large extent by its soft environmental laws. The Kyrgyz government invites foreign companies because they are very profitable for Kyrgyzstan’s developing economy. But it is very important for the country to develop strict environmental legislation. Large mining and metallurgical plants in Kyrgyzstan have encountered numerous environmental disasters after failing to take into account the dynamics of the environmental conditions. Such environmental disasters from mining have taken place at Mayluu-Suu, Kok-Djangak, Sumsar, Shekaftar, Sulyukta, and Aktyuz and have cost a great deal to clean up significantly impacting the Kygryzstan economy. In a statement that paraphrases Fredrik Engels, a report entitled "Kumtor-Pluses and Minuses, " states that Kyrgyzstan should not be proud of its victories over nature. For every such victory, nature takes revenge. Every victory results in the achievement of our desired goals, but following this come undesirable consequences that negate any achievements gained.

Maria Utyaganova, International Relations, American University in Kyrgyzstan.