Tajikistan: Chinese Company Gets Gold Mine In Return For Power Plant

Tajikistan: Chinese Company Gets Gold Mine In Return For Power Plant
Tajikistan Banking Crisis

A company from China has reportedly been granted a license to operate a gold mine in Tajikistan in exchange for building a power plant free of charge in the country’s capital.

Know more about Russia than your friends:

Get our free ebook on how the Soviet Union became Putin's Russia.

See 2017 Hedge Fund Letters.

Asia-Plus newspaper reported on April 11, citing an unnamed official with the State Geology Department, that Xinjiang-based TBEA has received the concession to develop the Upper Kumarg mine in the Sughd region in northern Tajikistan. The company was previously given the concession for the Eastern Duoba mine.

Alkeon expects data growth to surpass 5G’s capabilities by 2028 [Q4 Letter]

Alkeon Growth PartnersAlkeon Growth Partners wrote at length on tech stocks and why they are defensive in their recent letter to investors, which was reviewed by ValueWalk. The fund also highlighted 5G and other advanced technologies and the investment opportunities they offer. Q4 2020 hedge fund letters, conferences and more Artificial intelligence and machine learning The Alkeon Read More

The newspaper’s source said that the mining license was granted as remuneration for the funds TBEA spent on building the 400-megawatt Dushanbe TETs-2 power plant. Work on that thermal power plant was completed in December 2016 at a total cost of $349 million. Of that overall budget, around $17.4 million were provided by the Tajik government.

The arrangement described to Asia-Plus is that TBEA will work on the gold deposits as long as it takes to recoup its outlay.

“Afterward, the company plans to reach new deals on the management of these mines, but on different terms,” Asia-Plus said in its report, citing its unnamed source.

The quid quo pro deal may elicit some anxiety about how Tajikistan intends ultimately to deal with the rest of its considerable debts before Chinese creditors. The country’s external debt at the start of the year stood at $2.9 billion. Of that total, $1.2 billion is owed to the state-run Export-Import Bank of China, or Exim Bank.

Much of the money borrowed from China has gone toward building basic infrastructure like roads and tunnels, but some of the spending appears less than obviously indispensable.

When President Emomali Rahmon visited Beijing in September, he returned bearing $310 million in grants and loans. The bulk of that sum — around $230 million — is being spent on a new parliament complex in central Dushanbe.

In 2011, Tajikistan’s parliament voted to ratify an agreement to cede around 1,000 square kilometers of land to China in exchange for the waiving of a large outstanding debt running into the hundreds of millions of dollars.

The gold mining concession has now proven another way in which to pay off liabilities. A billion or so dollars can buy a lot more than that, however.

Article by EurasiaNet

No posts to display