04.08.2021

Alliance Altyn has contributed more than 63 million KGS towards developing and maintaining local infrastructure in Talas Oblast, just four months after the start of production at the Jeruy gold mine.

Alliance Altyn makes contributions to local budgets in strict compliance with the legislation of Kyrgyzstan. The 63 million 122 thousand KGS paid were distributed as follows:

• 31 million 561 thousand KGS went to the Talas Oblast Development Fund;
• 18 million 936 thousand KGS went to the Talas District Development Fund;
• 12 million 624 thousand KGS went to the Bekmoldo Rural Area Development Fund.

According to the law, the company contributes 2% of its revenues to the development and maintenance of local infrastructure. These funds 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.

As of July 25 this year, Alliance Altyn had transferred 2,000,406,000 KGS to the national and local budgets as part of the Jeruy project. Of these, taxes paid from the proceeds of gold sales amounted to over 614 million KGS.

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.

As previously expected, with the start of production at the Jeruy mine, Talas oblast's revenues have multiplied. 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. (In 2020, the region's budget received a total of 630 million KGS, or an average of 53 million KGS per month).

In the future, the national and local budgets and funds will receive up to 4 billion KGS annually in tax and other payments from the exploitation of the Jeruy deposit.