Kumtor Gold Company
In its first project in the Kyrgyz Republic, MIGA issued $45 million in reinsurance to the Export Development Corporation of Canada (EDC) for its insurance of Cameco Corporation's investment in a gold mine. The project involves commercial development of the Kumtor gold deposit and mining and marketing of gold. It a joint venture between Cameco Corporation's wholly owned Canadian subsidiary, Kumtor Mountain Corporation, and the Government of the Kyrgyz Republic.
The largest foreign private investment in the country to date, the project is expected to become the largest single source of export earnings. It will be a major source of local employment, and employees will be offered housing, a recreational area, and a health clinic. New roads and communication lines will be built for easy access to the mine site. An environmental management plan, developed in consultation with the local government, includes details of environmental monitoring and reclamation.
MIGA's reinsurance of EDC covers the risks of expropriation and war and civil disturbance. OPIC will provide political risk insurance coverage for commercial bank loans. The Kumtor project is also supported by loans from IFC and the EBRD. Thus, the project is an example of collaboration among leading multilateral and bilateral financing and political risk insurance agencies.