08.06.2021

Jeruy continues to increase its monthly payments to the Kyrgyz budget after the start of production. In May, another 219.7 million KGS were received from the Alliance Altyn mining company on three main types of payments. With 140 million KGS paid for April (the first month after the start of production), tax payments for just two months reached 360 million KGS.

On June 3, Alliance Altyn timely remitted income tax payments for May, made royalty payments and transferred the funds for infrastructure development:

• The amount of income tax paid for May 2021 was 142 million 814 thousand KGS (+57.4 million KGS compared to April);
• 54 million 928 thousand KGS were paid for royalties from the gold sales (+15.5 million KGS against April);
• 21 million 971 thousand KGS were allocated for the development and maintenance of local infrastructure (+6.2 million KGS against April).

In addition, Alliance Altyn also met other mandatory payments on time, both to the national and local budgets, as well as to other state institutions For instance, since the beginning of the year, almost 55 million KGS in insurance contributions have been transferred to the Social Fund of Kyrgyzstan in order to form the future pensions of the company's employees. Income tax payments to the budget amounted to about 13 million soms. Over 5 million KGS have been paid for geological licences. Also, Alliance Altyn paid almost 4 million KGS in customs duties on imported machinery and equipment. The land tax payment since the beginning of 2021 amounted to about 1 million KGS. These and other payments have been made in strict compliance with the laws of the Kyrgyz Republic.

It should be noted that 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.

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.

The first billion

It should be recalled that before the start of gold production at the Jeruy deposit - from 2015 to March 2021 - the amount of budgetary and social contributions from Alliance Altyn, despite the lack of actual production profit, amounted to 923 million KGS.

Taking the first payments after the start of operations into account - that is, 140 million KGS in April and 220 million KGS in May - the company's payments to the budget exceeded 1 billion KGS, amounting to 1 billion 329 million KGS.

In addition, Alliance Altyn separately transferred 600 million KGS 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, Kyrgyzstan will receive up to 4 billion KGS annually in tax and other payments from exploiting the Jeruy deposit.