Uzbekistan, located at the heart of the ancient silk route in Central Asia has the fourth largest gold resources in the world with approximately 5,300 tonnes and is currently the ninth largest gold producing country at approximately 80 tonnes produced annually. Where such resources are underexploited and significantly under developed, the upside potential is quite significant. With the Oxus Joint Venture (JV) located just 40Kms from the worlds largest single open pit gold mine at the Muruntau in Uzbekitstan we are clearly mining in a very conducive environment. Additionally, Uzbekistan has a proven Foreign Direct Investment Climate for western based mining companies as Oxus has been in production in Uzbekistan for the past 4 years with support from western bunks and financiers.
Uzbekistan is in Central Asia and is the fourth largest state of the former Soviet Union, covering an area of 447,400 square kilometres and measuring 925 kilometres from north to south and 1,400 kilometres from east to west. As one of the worlds only double land locked countries Uzbekistan is bordered by Kazakhstan to the north and west Kyrgyzstan and Tajikistan to the east and Turkmenistan and Afghanistan to the south, The capital of Uzbekistan, Tashkent, is 3,500 kilometres from the Black Sea and 3,000 kilometres from Moscow, Uzbekistan is easily accessible by air and also has a well-developed road and rail network.
With approximately 25.4 million people, Uzbekistan has Central Asia's largest population. The two main ethnic groups are Uzbek and Russian comprising 75% and 6% respectively of the population. The country is secular and the predominant religion is Sunni Muslim. Russian is widely spoken, In addition to Uzbek, which is a Turkic language. With a skilled and educated workforce with a 99% literacy rate and extensive mining experience, the human capital resources in Uzbekistan are endless.
Uzbekistan declared its Independence from the Soviet Union in September 1991. A new constitution was adopted in December 1992, declaring a multiparty democracy and a Presidential Republic. The electoral system is based on universal suffrage over the age of 18. Parliamentary elections were last held in December 1999, and Presidential elections in January 2000, when President Islam Karimov was re-elected.
The next round of Presidential Elections are set for December of 2007.
According to official data, real GDP growth In Uzbekistan has increased by more than 45% in the last three years. Significant sectors of the Uzbek economy include agricultural production and food processing, the development of hydrocarbon and energy and the extraction of mineral resources.
Muruntau, part of Navoi MMC, is the world's single largest open pit gold mine. It was discovered in 1958 and produced over 50 m ounces (1,6O0t) of gold to date and is producing approximately 1.8 m ounces of gold annually. The reserves at Muruntau are expected to last until approximately 2032 and is the 8th largest gold producer in the world. Within the central Kyzyl-Kum desert where Muruntau sits, there is thought to be an additional 3200 tonnes in untapped gold resources. Additionally in Uzbekistan are London Bullion market accredited gold and silver refineries, something very uncommon in other such developing economies in Central Asia.
President Karimov's government has taken a number of steps to support foreign investment. "The Law on Foreign Investments and the Law on Guarantees and Protection of the Rights of Foreign investor's, provides the general framework for foreign investment in Uzbekistan. Investments cannot be nationalised or confiscated without the payment of compensation. Further protection is provided in the form of a l0-year guarantee against adverse changes in legislation, including tax legislation.
