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Kyrgyzstan's Mining Farms Amid Energy Crisis Confusion

in Economy / Kyrgyzstan - by


As the Toktogul Reservoir continues to shrink and calls to save electricity grow, mining farms in Kyrgyzstan remain operational. Officials are struggling to justify their work amidst the energy crisis, with conflicting information on the number of farms and their power sources.

The exact number of mining farms in Kyrgyzstan remains unclear, with officials providing conflicting statements. While authorities acknowledge only one farm, lawmakers mentioned 22 farms during a parliamentary session. The lack of transparency adds to the confusion surrounding the industry.

One of the key concerns is the source of electricity for these mining operations. Kyrgyzstan is facing an energy crisis, leading to power outages for many citizens. While the public is urged to conserve energy, mining farms continue to consume substantial amounts.

Authorities in the energy sector deny that miners use Kyrgyz electricity, claiming it is imported from neighboring countries. However, these claims have been met with skepticism as different sources of electricity are mentioned each time.

Despite the controversy, mining companies contribute significantly to the country's budget through taxes. In 2023, the sector generated 93.7 million soms in taxes, with December recording the highest tax revenue at 15.09 million soms. Although January saw a slight decrease, it is expected that tax contributions will continue to increase in the coming months.

The government's efforts to protect miners are understandable as they pay significantly higher rates for electricity consumption compared to the general population. Additionally, large mining companies operate legally and pay substantial taxes, further boosting the country's revenue.

Overall, the debate surrounding mining farms in Kyrgyzstan continues, with questions lingering about their operations and the impact on the country's energy resources amidst the ongoing energy crisis.