BISHKEK - (September 26, 2003) Yesterday, the U.S. Trade and Development Agency (USTDA) awarded a $290,000 grant to the Government of Kyrgyzstan to provide technical assistance related to the development of small to medium-sized gold deposits. Mr. Donald Lu, Deputy Chief of Mission at the U.S. Embassy in Bishkek, signed an agreement conferring the grant on behalf of the U.S Government. Mr. Kamchibekov Duishenbek Kyrgyzbaevich, Deputy Director of the State Agency on Geology and Mineral Resources (SAGMR), signed on behalf of the Grantee.

The gold mining sector is very important to the Kyrgyz economy. Presently, the large Kumtor mine accounts for the majority of gold production of the country. However, Kyrgyzstan has approximately 90 discovered but undeveloped small to medium-sized gold deposits. These deposits are fairly well documented, due to the extensive exploration work that was done during the Soviet era.

In order to support the development of these resources, the USTDA-funded technical assistance will identify and analyze the most promising deposits not under license. Estimates of the reserves in these deposits will be prepared in conformance with international standards. Preliminary economic models, including scenarios based on proposed changes to Kyrgyz mining and tax laws, will be created for the selected deposits. Finally, assistance in marketing these deposits to prospective small to mid-sized U.S. gold mining companies will be provided.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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