25.05.2021

In the very first month after the start of production at the Jeruy deposit, the Kyrgyz budget received more than 140 million KGS on three main types of payments. You can find this information on the Open Budget website.

Thus, in April the Alliance Altyn development company made income tax payments, royalty payments, and transferred funds for infrastructure development:

• The income tax for April 2021 was 85 million 443 thousand KGS.
• The royalty payment from the gold sales was 39 million 391 thousand KGS
• 15 million 757 thousand soms were allocated for the development and maintenance of the infrastructure of local importance

Contributions to local infrastructure development and maintenance amounted to 2% of revenue. According to the legislation, these resources are distributed among three funds: 50% go to the oblast development fund, 30% to the district development fund and 20% to local budgets at the deposit's location.

All payments from the Jeruy deposit are regulated by the legislation of the Kyrgyz Republic. The distribution of funds and control over their expenditure is carried out at the Kyrgyzstan government level. The local authorities act as implementers for the intended use of the allocated funds.

The budget of the Talas oblast has doubled

As previously expected, with the start of production at the Jeruy mine, Talas oblast's revenues will multiply. The first revenue received by the local budget from Jeruy is 2.5 times more than the average monthly revenue of Talas oblast last year.

It should be noted that in 2020, the region's budget received a total of 630 million KGS, or an average of 53 million KGS per month.

Previous and future payments

Let us recall that prior to that - from 2015 to March 2021 - the amount of budgetary and social allocations from the Alliance Altyn was 923 million KGS.

In addition, 600 million KGS were separately transferred to the Bakubat Talas Fund, which finances social projects in Talas oblast and provides affordable, low-interest loans for small and medium-sized businesses.

Overall, the state budget (republican and local) will receive up to 4 billion KGS annually in tax and other payments from exploiting the Jeruy deposit.