USD 53.3641

+0.04

EUR 56.0535

+0.09

BRENT 112.73

+1.43

AI-92 46.2

0

AI-95 50.31

+0.03

AI-98 59.34

+0.04

Diesel 54.47

+54.47

404

China’s new gold project is a double-edged sword for Tajikistan

A new gold project funded through investment from China could help Tajikistan alleviate some of its economic troubles, Eurasianet analysed

China’s new gold project is a double-edged sword for Tajikistan

Dushanbe, April 18 - Neftegaz.RU. Tajikistan’s president traveled to the northern Sughd region to oversee the opening of a new gold processing plant built by a Chinese investor at a cost of around $136 million.

The enterprise, Talco Gold, will produce up to 2.2 tons of gold and 21,000 tons of antimony annually, according to government officials.

China is by far Tajikistan’s main source of foreign direct investment.
In 2021, businesses from China invested more than $211 million in Tajikistan, an amount that accounts for nearly 62 % of the global FDI figure.

Those funds mainly went toward the extraction and processing of lead, zinc, and tin ores and the mining of precious and semi-precious gems and metals.

Talco Gold is a joint venture between the Talco Aluminum Company, a Tursunzoda-based company said to be owned Hasan Asadullozoda, the brother-in-law of President Emomali Rahmon, and China’s Tibet Huayu Mining.

The company has promised it will provide jobs for 1 500 people, most of them Tajik nationals.
That prospect comes at a fortuitous time, just as Tajikistan faces the prospect of a fresh economic crisis precipitated by international sanctions on Russia, where hundreds of thousands of Tajiks travel annually for seasonal labor.

Work on building the processing facility in the Sughd region, which will work with material mined at the nearby Chulboi, Konchoch, and Shakhkon deposits, had begun 4 years ago but was delayed by the onset of the COVID-19 pandemic.

Talco is ostensibly an aluminum concern, but it began to branch out in 2015 as a result of a state-designed program to prop up the company.
As part of that program, the government handed the company a 25-year concession to the Konchoch gold and silver deposits.

Chinese investments invariably arrive with many strings attached – not least because Tajikistan is deeply in debt to Beijing.
According to the Finance Ministry, Tajik debt to China as of January 1 amounted to $1.1 billion, which is almost exactly 1/3 of the country’s overall external debt.

Some economic experts cast doubt on whether China’s debt strategy for Tajikistan brings sufficient rewards.
One analyst told Eurasianet on condition of anonymity:
  • China gives money as a loan to Tajikistan for specific projects, and often the parliament approves tax exemptions during the construction period
  • Construction equipment is brought in from China, Chinese workers are engaged in the building
  • As a result, all the money goes back to China, and Tajikistan remains saddled with the debt

Source : Neftegaz.RU


Follow us on Facebook
Advertising at neftegaz.ru

Subscribe to our newsletter

of the best materials Neftegaz.RU

* Incorrect E-Mail Address

By clicking the "Subscribe" button I accept the "Agreement on the processing of personal data"


Advertising at neftegaz.ru