1. COUNTRY REPORT BRIEF INTRODUCTION MINERAL RESOURCES REPUBLIC OF UZBEKISTAN Shukhrat Bobomurodov

2. REPUBLIC OF UZBEKISTAN Main Information: Area: 447.4 km2. Population: 27 millions people. Capital: Tashkent. Population of Tashkent: 2,3 millions people. Language: The official language is Uzbek. Other languages spoken: Russian. Religion: Muslim (Sunni).

3. GOVERNMENTAL POLICY REGARDING MINERAL RESOURCES The current situation of mineral raw material base not only requires the full capacities of the existing mining and processing enterprises, but also creates favorable preconditions for the construction of new production-plants for gold, silver, copper, kaolin, fluorspar, phosphorous and potash fertilizers. As world experience shows, investment directed at the development of highly solvent minerals brings in big revenues. The world's leading foreign companies are today already actively participating in this development. In 1992 the first Uzbek - US joint venture for gold production 'Zarafshan - Newmont', was set up, the founder of which was the American company Newmont Mining Corporation. This venture was set up to extract gold from the mineralized mass wastes of the Muruntau open pit, The construction of a mill, the cost of which was more than US $220 million, was begun in October 1993 and finished in May 1995. In 1995 the joint venture produced its first gold. In 1994 a joint Uzbek - British enterprise, Amantau Goldfields, was created, the foreign founders of which were the Lonrho Company (Great Britain) and the International Financial Corporation. The goal of this venture is to develop the gold ore deposits in Daughiztau and Amantaitau. This plant is expected to start up in 1998.

4. GOVERNMENTAL POLICY REGARDING MINERAL RESOURCES Uzbekistan has been experiencing high growth rates, with foreign investment still a key issue in the country’s economy (in particular the mining industry). Gold is the most important foreign exchange producer. Uzbekistan is also an important producer of lead, zinc, silver, molybdenum and coal. The country has large mineral potential, most of which is economically viable. Uzbekistan has a favorable investment climate. Uzbekistan has been experiencing high growth rates, with foreign investment still a key issue in the country’s economy (in particular the mining industry). Gold is the most important foreign exchange producer. Uzbekistan is also an important producer of lead, zinc, silver, molybdenum and coal. The country has large mineral potential, most of which is economically viable. Uzbekistan has a favorable investment climate. The European Bank for Reconstruction and Development (EBRD) has plans to implement 20 projects in Uzbekistan involving a total of US$1.4 billion. The EBRD's contribution will amount to US$723.8 million. The EBRD is involved in projects in the coal mining, fuel and energy sectors, and is giving active support to small and medium-sized Uzbek businesses The European Bank for Reconstruction and Development (EBRD) has plans to implement 20 projects in Uzbekistan involving a total of US$1.4 billion. The EBRD's contribution will amount to US$723.8 million. The EBRD is involved in projects in the coal mining, fuel and energy sectors, and is giving active support to small and medium-sized Uzbek businesses

5. GOVERNMENTAL POLICY REGARDING MINERAL RESOURCES Two joint ventures with South Korean investors started exploration works at quartz and quartzite deposits in Uzbekistan. Two joint ventures with South Korean investors started exploration works at quartz and quartzite deposits in Uzbekistan. The ventures will carry out exploration works within three years and they will invest US$1.5 million to each project. The ventures will carry out exploration works within three years and they will invest US$1.5 million to each project. It is expected that the construction of the enterprise on production of poly- and mono-crystal of silicon will be launched at Navoi free industrial and economic zone. It is expected that the construction of the enterprise on production of poly- and mono-crystal of silicon will be launched at Navoi free industrial and economic zone. The Committee on Geology and Mineral Resources of Uzbekistan created the joint venture Uz-Kor Silicon LLC with South Korea's NeoPLANT and Uz-Shindong Silicon with Shindong Enercom Inc. in 2008. The Committee on Geology and Mineral Resources of Uzbekistan created the joint venture Uz-Kor Silicon LLC with South Korea's NeoPLANT and Uz-Shindong Silicon with Shindong Enercom Inc. in 2008. Japan Oil, Gas and Metals National Corporation (JOGMEC) and Uzbekistan's government have signed a treaty on joint uranium exploration. Japan Oil, Gas and Metals National Corporation (JOGMEC) and Uzbekistan's government have signed a treaty on joint uranium exploration. Under the contract exploration works will begin in the Navoi region, central Uzbekistan. Under the contract exploration works will begin in the Navoi region, central Uzbekistan.

6. GOVERNMENTAL POLICY REGARDING MINERAL RESOURCES Gained experience of the Representative office ENCE GmbH in reconstruction and modernization of the operating chemical and oil-refining enterprises has provided a basis for development and realization of megaprojects included in the Government Development Program of the Republic of Uzbekistan. In particularly, there are carried on negotiations for projects of reconstruction, building and commissioning of the units of National Holding Company “Uzbekneftegaz”. Gained experience of the Representative office ENCE GmbH in reconstruction and modernization of the operating chemical and oil-refining enterprises has provided a basis for development and realization of megaprojects included in the Government Development Program of the Republic of Uzbekistan. In particularly, there are carried on negotiations for projects of reconstruction, building and commissioning of the units of National Holding Company “Uzbekneftegaz”. An agreement has been signed between Uzbek partners and the prestigious companies Mitsui (Japan) and some Korean mining companies, aimed at developing gold ore deposits in the Tashkent zone. An agreement has been signed between Uzbek partners and the prestigious companies Mitsui (Japan) and some Korean mining companies, aimed at developing gold ore deposits in the Tashkent zone. Memorandum on «Сreation of national GIS system of Uzbekistan» between the government of Uzbekistan and the government of Korea Republic were signed. Memorandum on «Сreation of national GIS system of Uzbekistan» between the government of Uzbekistan and the government of Korea Republic were signed.

7. The State Committee for Geology and Mineral Resources (Goskomgeologia) oversees the mining industry in Uzbekistan. The State Committee for Geology and Mineral Resources (Goskomgeologia) oversees the mining industry in Uzbekistan. State Committee of the Republic of Uzbekistan for Geology and Mineral Resources has been established by the Decree of the President of Uzbek Soviet Republic “On establishment of the State Committee of Uzbek Soviet Republic for Geology and Mineral Resources” № 142, dated February 2, 1991 and by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan Republic “On establishment of the State Committee of the Republic of Uzbekistan for Geology and Mineral Resources” № 125, dated May 11, 1991. State Committee of the Republic of Uzbekistan for Geology and Mineral Resources has been established by the Decree of the President of Uzbek Soviet Republic “On establishment of the State Committee of Uzbek Soviet Republic for Geology and Mineral Resources” № 142, dated February 2, 1991 and by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan Republic “On establishment of the State Committee of the Republic of Uzbekistan for Geology and Mineral Resources” № 125, dated May 11, 1991. GOVERNMENTAL ORGANIZATION ON MINERAL RESOURCES State committee of the Republic of Uzbekistan for geology and mineral resources

8. GOVERNMENTAL ORGANIZATION ON MINERAL RESOURCES State committee of the Republic of Uzbekistan for geology and mineral resources geologic analysis of entrails with the purpose of strengthening and development of the mineral base of the mining and process industry; provides coordination of different branches of industry connected to the geologic analysis of entrails of the territory of Uzbekistan; carries out the state control over the geologic analysis of entrails by all enterprises and organizations irrespective of patterns of ownership; creates and provides functioning of a databank on the geologic structure of entrails and mineral resources of the republic; conducting the State balance on mineral reserves, etc.

9. GOVERNMENTAL ORGANIZATION ON MINERAL RESOURCE For realization of tasks in view three Research-and-production centers also function in Goscomgeologia: For realization of tasks in view three Research-and-production centers also function in Goscomgeologia: SE « SIC (Scientific and Industrial Center) Geology of precious and nonferrous metals ». SE « SIC (Scientific and Industrial Center) Geology of precious and nonferrous metals ». SE « SIC Geology of uranium and rare – earth metals ». SE « SIC Geology of uranium and rare – earth metals ». SE « SIC Geology of hydro mineral resources ». SE « SIC Geology of hydro mineral resources ». Two branch scientific and research institutes: Two branch scientific and research institutes: SE « Institute of Mineral Resources » (solid mineral resources, regional operations), SE « Institute of Mineral Resources » (solid mineral resources, regional operations), SE « Institute of Hydrogeology and Engineering Geology » (operations on underground waters, etc.); SE « Institute of Hydrogeology and Engineering Geology » (operations on underground waters, etc.); SE « State Geological Information Centre », including State geologic fund and branch scientific and technical library. Structure of Goskomgeologia includes 17 expeditions and 11 specialized enterprises and organizations. SE « State Geological Information Centre », including State geologic fund and branch scientific and technical library. Structure of Goskomgeologia includes 17 expeditions and 11 specialized enterprises and organizations.

10. BRIEF DESCRIPTION OF MINING INDUSTRY By such important minerals like gold, uranium, copper, natural gas, tungsten, potash salt, phosphorites, kaolin Uzbekistan by the confirmed stocks and perspective ores occupies the leading positions not only within the Central Asian Republics, but also in the whole world. By such important minerals like gold, uranium, copper, natural gas, tungsten, potash salt, phosphorites, kaolin Uzbekistan by the confirmed stocks and perspective ores occupies the leading positions not only within the Central Asian Republics, but also in the whole world. Republic of Uzbekistan possesses powerful mineral and raw materials sources, as well as huge potentialities for their increase. It also has real possibilities for national economic growth through further development of explored deposits and mining operations. There are over 2,700 fields prospected with more than 100 different minerals, 60 out of them are already used by national economic branches; Republic of Uzbekistan possesses powerful mineral and raw materials sources, as well as huge potentialities for their increase. It also has real possibilities for national economic growth through further development of explored deposits and mining operations. There are over 2,700 fields prospected with more than 100 different minerals, 60 out of them are already used by national economic branches; Mining and processing of mineral resources is of major importance for the entire national economy and its further development. At present more than 440 oil-and-gas fields, mines, open pits, plants, etc., as well as 380 water scoops, balnearies and plants for bottling of table and treatment waters. Mining and processing of mineral resources is of major importance for the entire national economy and its further development. At present more than 440 oil-and-gas fields, mines, open pits, plants, etc., as well as 380 water scoops, balnearies and plants for bottling of table and treatment waters.

11. BRIEF DESCRIPTION OF MINING INDUSTRY 940 deposits are explored, including 165- oil, gas and condensate; 3- coal; 46- noble metals; 36- nonferrous, rare and reactive metals; 17- crude ore; 9- ore and chemical stuff; 21- semi-precious stones; 495- building materials for different purposes; 151- groundwater deposits for household and drinking, industrial and balneal needs. In total 45% of the explored fields are being already developed. For the time being new iron-ore and vermiculite deposits are being explored. Uzbekistan also implements exploration activity aimed at unconventional mineral resources. It is necessary to substitute local mineral resources for the imported ones. Hydro-mineral resources are being also examined as one of the potential mineral wealth sources. 940 deposits are explored, including 165- oil, gas and condensate; 3- coal; 46- noble metals; 36- nonferrous, rare and reactive metals; 17- crude ore; 9- ore and chemical stuff; 21- semi-precious stones; 495- building materials for different purposes; 151- groundwater deposits for household and drinking, industrial and balneal needs. In total 45% of the explored fields are being already developed. For the time being new iron-ore and vermiculite deposits are being explored. Uzbekistan also implements exploration activity aimed at unconventional mineral resources. It is necessary to substitute local mineral resources for the imported ones. Hydro-mineral resources are being also examined as one of the potential mineral wealth sources.

12. BRIEF DESCRIPTION OF MINING INDUSTRY In total over $1.3 billion of foreign investments is expected to be attracted for implementation of 14 on-going and developed mining and prospecting projects, $265 million of them was already realized. Within the recent time particular emphasis is being placed on development of potash salts deposits required for production of chlorine-free potash fertilizers. Rare alkaline metal deposit (lithium, rubidium, cesium) is also extremely promising; as a result original non-waste ore processing technology was developed. Considerable ore reserves used in mining and nonferrous metallurgy, as well as electrical, abrasive, refractories, porcelain and faience industry, mining and chemical production of phosphate and potash fertilizers, agro-ores (in-situ), etc. In total over $1.3 billion of foreign investments is expected to be attracted for implementation of 14 on-going and developed mining and prospecting projects, $265 million of them was already realized. Within the recent time particular emphasis is being placed on development of potash salts deposits required for production of chlorine-free potash fertilizers. Rare alkaline metal deposit (lithium, rubidium, cesium) is also extremely promising; as a result original non-waste ore processing technology was developed. Considerable ore reserves used in mining and nonferrous metallurgy, as well as electrical, abrasive, refractories, porcelain and faience industry, mining and chemical production of phosphate and potash fertilizers, agro-ores (in-situ), etc.

13. BRIEF DESCRIPTION OF MINING INDUSTRY Local mining industry is highly developed; in addition, there is a favorable infrastructure in those regions, which are proposed for investing. Many deposits are suitable for the cheapest open-cut mining. There are technologies available for mineral resources’ processing, which enable to achieve high extraction of useful components. Output products are rather competitive, and there is a sustainable market for them. Low production costs ensure high efficiency of capital investments as compared with the similar projects implemented in neighboring countries. Major factors, guaranteeing security of investments attracted into Uzbek mining industry, include political and economic stability of the country, as well as availability of necessary legislative framework, which ensures favorable business climate for foreign investors’ activity. Local mining industry is highly developed; in addition, there is a favorable infrastructure in those regions, which are proposed for investing. Many deposits are suitable for the cheapest open-cut mining. There are technologies available for mineral resources’ processing, which enable to achieve high extraction of useful components. Output products are rather competitive, and there is a sustainable market for them. Low production costs ensure high efficiency of capital investments as compared with the similar projects implemented in neighboring countries. Major factors, guaranteeing security of investments attracted into Uzbek mining industry, include political and economic stability of the country, as well as availability of necessary legislative framework, which ensures favorable business climate for foreign investors’ activity.

14. MINERAL DEPOSITS OF UZBEKISTAN

15. COAL-MINING INDUSTRY In Uzbekistan coal is being produced by three deposits: Angren (brown coal), Shargun (brown coal) and Baysun (black coal). In Uzbekistan coal is being produced by three deposits: Angren (brown coal), Shargun (brown coal) and Baysun (black coal). Valley of the Angren River situated in Tashkent Province is the most industrially developed region both of Uzbekistan and the whole Central Asian region as well. Here the most successfully operating mining enterprises are located, including Angren coal and kaolin complex JSC “Ugol”. This is the only local company engaged in coal production. It incorporates a range of coal-mining companies. National explored coal reserves amount to 1.9 billion t. Valley of the Angren River situated in Tashkent Province is the most industrially developed region both of Uzbekistan and the whole Central Asian region as well. Here the most successfully operating mining enterprises are located, including Angren coal and kaolin complex JSC “Ugol”. This is the only local company engaged in coal production. It incorporates a range of coal-mining companies. National explored coal reserves amount to 1.9 billion t.

16. METAL MINING INDUSTRY Nonferrous metallurgy is one of the leading Uzbek industries based on local resources. It comprises companies involved in production of copper, lead-zinc, rare and precious metals, which are mainly based in Angren- Almalyk mining region (Tashkent Province). Nonferrous metallurgy is one of the leading Uzbek industries based on local resources. It comprises companies involved in production of copper, lead-zinc, rare and precious metals, which are mainly based in Angren- Almalyk mining region (Tashkent Province). Navoi metallurgical complex is the largest multi-profile enterprise located in Central Kyzylkum area – unique ore basin. There are explored deposits of uranium, gold, silver, tungsten, phosphorites, table salt, marble, manganese, turquoise, facing stone and silica sand required for production of glass, faience and ceramics. The complex comprises complete production cycle of uranium, gold, silver and other products. Along with basic metals palladium and rhenium are also abstracted and produced. Navoi metallurgical complex is the largest multi-profile enterprise located in Central Kyzylkum area – unique ore basin. There are explored deposits of uranium, gold, silver, tungsten, phosphorites, table salt, marble, manganese, turquoise, facing stone and silica sand required for production of glass, faience and ceramics. The complex comprises complete production cycle of uranium, gold, silver and other products. Along with basic metals palladium and rhenium are also abstracted and produced.

17. GOLD-MINING INDUSTRY Gold is the most important foreign exchange producer. Uzbekistan occupies the 4th place in the world by gold stocks, and by the level of its output – the 7th ranking. Gold is the most important foreign exchange producer. Uzbekistan occupies the 4th place in the world by gold stocks, and by the level of its output – the 7th ranking. This industry comprises 5 gold mines, 3 gold- recovery plants and 1 crushing and burdening plant for manufacture of flux material for copper production. Gold-mining companies are operating at the following deposits: Kochbulak, Kyzylalmasay, Pirmirab, Guzaksay, Kauldy, Mardjanbulak, Zarmitan and Karakutan. This industry comprises 5 gold mines, 3 gold- recovery plants and 1 crushing and burdening plant for manufacture of flux material for copper production. Gold-mining companies are operating at the following deposits: Kochbulak, Kyzylalmasay, Pirmirab, Guzaksay, Kauldy, Mardjanbulak, Zarmitan and Karakutan.

18. P R O J E C T S

19. LOCAL PROJECTS «Creation of geodynamic map of before Mesozoic complexes of the Republic of Uzbekistan with scale 1:500 000 using GIS- technologies as a base for prediction and metallogenic constructions and mineral resources monitoring»; «Creation of geodynamic map of before Mesozoic complexes of the Republic of Uzbekistan with scale 1:500 000 using GIS- technologies as a base for prediction and metallogenic constructions and mineral resources monitoring»; «Atlas of Uzbekistan ore deposits models»; «Atlas of Uzbekistan ore deposits models»; Creation of the set of digital geologic maps of the Republic of Uzbekistan with scale 1:1 000 000 Creation of the set of digital geologic maps of the Republic of Uzbekistan with scale 1:1 000 000

20. INTERNATIONAL PROJECTS «Creation of GIS – Atlas of digital geologic maps of Russia, countries of CIS and contiguous states.» «Creation of GIS – Atlas of digital geologic maps of Russia, countries of CIS and contiguous states.»

21. Creation of GIS – Atlas of digital geologic maps of Russia, countries of CIS and contiguous states

23. Future programs and directions Updating of geologic base of the territory of Uzbekistan with medial (large in perspective) scale. Updating of geologic base of the territory of Uzbekistan with medial (large in perspective) scale. Creation of digital variant of geologic base of the territory of Uzbekistan with medial (large in perspective) scale in ARCInfo. Digital information efforts an opportunity to go up to international level, computer analysis and geologic data monitoring. Creation of digital variant of geologic base of the territory of Uzbekistan with medial (large in perspective) scale in ARCInfo. Digital information efforts an opportunity to go up to international level, computer analysis and geologic data monitoring. Creation of the branch general geologic data bank (GDB). Creation of the branch general geologic data bank (GDB).

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