Martin Andersson, Charaat’s chairman and who has just visited Kyrgyzstan, added that legislation had recently been enacted to enable companies to sign a stabilisation agreement with the government.
“This means tax rates will be stabilised for the life of a project. Tax rates may be reduced once a stabilisation agreement is in place, but companies will be protected from any increase in rates.”
Chaarat has begun to work on concluding a stabilisation agreement in conjunction with an investment agreement that will enshrine the right to seek international arbitration in case of any future dispute with the Government.
“We are one of the leading members of the International Business Council ("IBC") which represents companies who together contribute in excess of 55% to the state budget.
A study of the mining sector has been commissioned by the IBC to provide input to the continuing consultation between the private sector and government on how to balance the interests of industry and country for the benefit of all stakeholders, Andersson added.