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1_01_Uzbekistan_IMF21

Fine tuning Uzbekistan's economic engine

Jamshid Kuchkarov.jpg

The Uzbek government is committed to transforming the country’s powerful metals and mining industry into a world leader

Uzbekistan is one of the leading countries in the world in gold mining, ranking fourth in terms of total reserves and seventh in terms of production. On its territory there are 97 gold mining deposits with reserves of more than six thousand tons, 10 copper deposits with resources of about 44 million tons, and others. Uzbekistan produces more than 140 thousand tons of cathode copper and more than 55 thousand tons of copper is processed by domestic enterprises.

The mining industry is one of the key drivers for further development of our economy. Therefore, mining companies are actively implementing investment projects to increase reserves of mineral resources and develop deposits for the extraction of gold, copper and other mineral resources. For example, in the next five years, we are planning to increase the production of cathode copper to 290 thousand tons per year through the development of new deposits and increasing the annual production to 400 thousand tons in 2028.

Today we are working on a mechanism to attract potential investors to develop new mineral deposits. The procedure for issuing permits for the right to use

less-explored subsoil plots for the purpose of geological exploration is being introduced on a first come, first served basis and for areas with a high degree of exploration as well as potential for discovering deposits based on the results of auctions.

In accordance with the decrees of the President of the Republic of Uzbekistan, modern methods of corporate governance will be introduced in mining companies. A huge amount of work has been carried out to transform the activities of enterprises in the mining and metallurgical industry.

Today, reforms are being carried out to restructure the state enterprise Navoi Mining & Metallurgy Combinat and transform its activities. The plan to support this transformation is to create a joint stock company, obtain credit ratings from reputable agencies, and place shares on international stock exchanges.

Also, by order of the President of the Republic of Uzbekistan, a copper industry cluster is being formed in the country aimed at creating multi-level value chains from raw materials to finished products, expanding exploration work for copper, non-ferrous, and rare metals, as well as the development of geological science and the market for geological services.

In addition, a new system of interaction between science and production is being introduced for the development of an interconnected system of design and engineering services. This is translating into production and development of new types of mining and metallurgical machinery, which in turn, leads to expansion of chemical products.

We understand that human capital is hugely important, which is why we are paying particular attention to improving the capacity of the building and training system in the mining and metallurgical industry.

I am sure that all these measures will immediately yield results, and particularly in helping to increase the flow of foreign direct investment, the creation of new jobs, the development of related industries and the export of products to foreign countries. The mining and metallurgical industry

is the fundamental driver of the country’s economy. We expect the industry’s transformation to strengthen and accelerate the country’s economic growth.

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