Sairinen, R

Tiainen, H

English

UEF Electronic Publications

1Lack of Dialogue and Poor Governance 
Resulting in Local Resistance – Policy Brief
Mining in the Chatkal Valley
Mining in the Chatkal Valley – Lack of Dialogue and Poor Governance 
Resulting in Local Resistance – Policy brief
© 2012 University of Eastern Finland
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Disclaimers: The views expressed in this document are those of the authors and do not necessar-
ily reflect views of the partner organizations and governments.
 The designations employed and the presentation of the material in this publication do not imply 
the expression of any opinion whatsoever concerning the legal status of any country, territory, city 
or area or of its authorities, or concerning delimitation of its frontiers or boundaries. We regret any 
errors or omissions that may unwittingly have been made.
Acknowledgement: The Ministry for Foreign Affairs of Finland and its Wider European Initia-
tive has provided support through the University of Eastern Finland for the process of developing 
this toolkit for prevention and mediation of mining conflicts, and the associated analysis of envi-
ronmental security in the mining sector in Central Asia.
Lead authors: H. Tiainen, R. Sairinen 
Contributors: V. Novikov, K. Isabaev, G. Soronkulov, N. Mendibaev, K. Ibraev 
Layout: M. Libert
ISBN 978-952-61-0937-4 (print)
ISBN 978-952-61-0938-1 (PDF)
This briefing note was prepared by the University of Eastern Finland 
(Joensuu, FINLAND) with assistance and advice from: Zoï Environment 
Network, Kyrgyz Mining Association, Osh Aarhus Environmental Infor-
mation Centre, Chatkal Development Foundation, Osh Technological 
University, and a number of mining companies and local administrations 
in Kyrgyzstan. 
Contents
PoliCy brief: Mining in the Chatkal Valley 
– laCk of dialogue and Poor goVernanCe 
resulting in loCal resistanCe
 Mining in the Chatkal Valley
 social impacts of Mining in the Chatkal Valley
 the legal framework for Mining
 the Complexity of Company-community relationships
 shortcomings in Communication
 Proposals for further development 
4
4PoliCy brief: Mining in the Chatkal Valley
 – laCk of dialogue and Poor goVernanCe 
resulting in loCal resistanCe
During the last decade, to boost the national 
economy, Kyrgyzstan has strived to develop 
its mining industry through efforts to attract 
foreign investors. However, at the same time, 
Kyrgyzstan has had an increasing number of 
conflicts between mining companies and local 
communities. Study of the Chatkal Valley¹ case 
suggests that the local resistance now leading 
to severe conflicts may have been encouraged 
by poor governance of the mining industry and 
lack of cooperation between stakeholders, also 
contributing are the industry’s and some lev-
els of government’s lack of acknowledgement 
of social impacts and community interests. We 
argue that adequate assessment and manage-
ment of the social impacts of mining are vital to 
the sustainable development of both the indus-
try and the society in which it operates.
Mining in the 
Chatkal Valley
The Chatkal Valley is a remote, scarcely popu-
lated region, located in western Kyrgyzstan. 
For the past decade this valley with its  notable 
mineral resources has attracted the mining in-
dustry, and created hopes for a brighter socio -
economic situation, since this region has been 
suffering from unemployment. Recently, how-
ever, further mining development has been 
hampered by a growing local resistance. This 
situation in the Chatkal Valley is similar to 
the emerging local mining conflicts in other 
Kyrgyzstani regions. The extent and growth 
of these occurrences of local opposition to the 
mining industry has called for deeper examina-
tion of their underlying reasons.
 The Chatkal Valley is rich in biodiversity 
as well as minerals resources. Economically 
speaking the region is poor; the most impor-
tant local economies are agriculture and cat-
tle raising, with opportunities for employment 
and education being few. Better opportunities 
are commonly sought through migration to 
Russia or the national capital, Bishkek. 
 Contemporary mining activities in the 
Chatkal Valley include both alluvial gold ex-
traction along the rivers and the development 
of major deposits. Certain areas of the region 
have long traditions of mining, while in others 
the mining industry has only recently begun 
Mining in the Chatkal Valley
 
1. The research team conducted field work in the Chatkal Valley in June 2011. The data collected includes 16 semi-
structured, thematic interviews with artisanal miners, representatives of the local administration, workers from 
industrial mining companies, mining professionals, and members of local communities. In addition, a survey of 
100 respondents was conducted in the region in August 2011, with field notes from and consultations with this 
second survey’s research team also utilized to complement this data.
5to  develop. The perceptions of mining by the 
region’s local populations and authorities are 
mixed and depend on the location and the his-
torical background of the regional area, as well 
as on the past and current environmental prac-
tices of mining companies in the area. Concep-
tions also differ of the individual mining com-
panies operating in the region; in some areas 
people are open to working with foreign com-
panies, whereas in other areas the local popu-
lation would strongly prefer development by 
only state-owned companies. Altogether, the 
empirical studies conducted in the region sug-
gest that in general the local populations and 
authorities of the Chatkal Valley are seeking 
economic diversification rather than entrust-
ing the regional economic development solely 
to the mining industry.
social impacts of Mining 
in the Chatkal Valley
Social impacts consist of a multifaceted group 
of matters that influence the everyday lives of 
people; changes in health, security, econom-
ics, and culture all fall under the umbrella 
concept of social impacts (IAIA 2003). Mining 
is a particularly extreme industry that often 
has manifold social impacts on the local area 
where it operates. Consideration of the social 
consequences of mining is especially vital in 
rural areas, since the social dynamics of small 
communities and their possible dependence on 
a single resource for their livelihood can make 
them more prone to these impacts than larger 
communities.
 The expansion of mining activities in the 
Chatkal Valley was presumed to improve the 
socio-economic situation of the region, but the 
impacts of mining have not been solely as ex-
pected by the local community. The contribu-
tions of the mining industry to the economic 
development of the local area have not been 
substantial with the industry not stimulat-
ing other sectors in the region as hoped. The 
growth of the industry clearly has a positive 
impact on local employment, as most emerg-
ing employment opportunities in the region 
are created in mining. Compared to agriculture 
and cattle raising, where changes in weather 
and demand play a major role, mining provides 
a reasonable and rather stable income, even in 
winter months when most agricultural activi-
ties cease.
 Because locally there rarely are sufficient 
professionally skilled workers available to meet 
the needs of the companies, they also recruit 
from outside the area. At times, this creates 
tension between the companies and locals. 
Further, since companies are recruiting mainly 
with short term contracts, the long-term im-
pacts on employment remain uncertain. The 
extent of benefits provided to workers varies 
from company to company, with some social 
security benefits being rather poor; for exam-
ple, entitlement to sick leave is not certain. A 
major problem is the employment situation for 
local women; this is not improved by mining, 
since women are traditionally not directly in-
volved in it.
 The environmental impacts of mining are 
contested issues in the region. Local popula-
tions consider publicly provided information 
on the state of the environment unsound. Wa-
ter pollution is perhaps the most central con-
cern. Mining frequently affects the clarity and 
colour of water resources, which locals believe 
to be a consequence of the use of toxic chemi-
cals. Although there is no proof of any water 
contamination to rivers, yet, there are a num-
ber of rumours of pollution. These tales affect 
the willingness of locals to use the visibly al-
tered water for everyday purposes. Besides 
these noted effects on water, the main environ-
mental impacts of mining concern air-pollution 
(especially dust), tailings management, and in-
adequate or unrealized land reclamation. 
Social Impacts of Mining in the Chatkal Valley
An artisanal gold miner at work, Jany-Bazar. Photo: K. Isabaev
Former area of intense artisanal gold mining. Photo: K. Isabaev
Miners at Tereksay. Photo: K. Isabaev
Mechanized placer gold mining. Photo: K. Isabaev
10 Mining in the Chatkal Valley
 Mining also poses an impending risk to the 
large number of nomads in the region. If the 
industry continues to develop and grow at its 
presence rate, it is possible that pastures will be 
affected bringing about conflict with nomads. 
Also since there is a general regional prefer-
ence for economic diversification rather than 
concentrating solely on mining, then plans to 
reinforce the economy through organic agri-
culture and tourism can also be hampered by 
intense mining activities.
 The mining industry can play an essential 
role as an employer in the Chatkal Valley, but 
local populations increasingly perceive its eco-
nomic and environmental impacts negatively. 
Companies exploiting local resources are pre-
sumed, even demanded, to provide compen-
sation to the local communities. Most mining 
companies have responded to these requests, 
by taking part in projects, such as road con-
struction and renovations of schools. These so-
cial contributions are directed at improving the 
infrastructure of the region, while also helping 
the companies achieve social acceptance. De-
spite any achievements through community 
development, companies are still increasingly 
incapable of maintaining their social license, 
such that they recently have begun to ques-
tion the limits of their responsibility. Some of 
the misunderstandings are rooted in the older 
generation of locals thinking of the mining op-
erations during the Soviet period, during which 
mining was purely a state activity that included 
extensive social contributions to local commu-
nities. Today, in a more capitalist economy, 
the mining is done mostly by private or semi-
private companies, who are now the rich and 
powerfully placed actors with the capacities to 
fund services the state is unable to provide, but 
not with a history of doing so. The past social-
ist experience provides a view that feeds the 
local populations with continuously growing 
demands and expectations towards the com-
panies.
the Complexity of 
Company-community 
relationships 
The relationship between mining companies 
and local communities in general is problemat-
ic, to say the least, and the Chatkal Valley case 
is no exception. Shortcomings in communica-
tion play a significant role in the situation, in 
which instead of mutual understanding mining 
companies and local communities are proceed-
ing toward open conflict. For mining compa-
nies, the setting is particularly difficult since 
the image of a single company is not dependent 
only on the actions taken by that company, but 
also to some degree on those taken by others 
operating in the region.
 The general problem at the local level is a 
lack of interaction and dialogue between com-
panies and local communities; this has a nega-
tive impact on the social atmosphere of the 
region. Many areas of the Valley have experi-
enced the withdrawal of operations by some 
companies, this together with the shortcom-
ings in communication to local populations 
concerning company operations, have fostered 
a distrust of the companies, as well as demon-
strating these companies’ obliviousness to the 
local communities. Now, companies are aware 
of the importance of interaction with the lo-
cal community, with many of them having a 
specialist responsible for communicating with 
the public. However, from the local perspec-
tive there is not enough information available. 
At present, companies are informing the local 
populations mainly through public meetings, 
but these occasional gatherings are not enough 
to ensure a sufficient level of information is 
provided. Also, at a certain point in a faltering 
or nearly faltering relationship, the locals are 
not always responsive to the information avail-
able, and may resort to direct action to protest. 
11Proposals for Further Development
Overall, if the local community considers that 
the company has been neglecting them, then 
finding common ground is very difficult.
shortcomings in 
Communication 
The analysis of the Chatkal Valley case indi-
cates that many of the social impacts of min-
ing and the issues around them are related to 
shortcomings in communication between the 
local communities and the mining companies, 
as well as unrealistic expectations on the com-
panies by the locals. Nevertheless, the reasons 
for conflict should not be oversimplified, thus, 
this deepening conflict should also be contem-
plated from the view of the wider Kyrgyzstani 
societal situation.
 Until recently in Kyrgyzstan, policy meas-
ures to ensure that the benefits from mining 
are equally distributed regionally and the na-
tionally, as well as to promote the rights of the 
local communities, have been tangential. Over-
all, it appears that the industry’s actors are only 
just beginning to acknowledge the importance 
of managing the social dimension of mining. 
Since locals perceive the government as cur-
rently being incapable of providing them with 
adequate social services and infrastructure, 
they are targeting their pleas for these services 
at the mining companies. This is based on past 
experience with Soviet era state-owned mining 
operations that as a part of the state, admin-
istered and provided similar services that are 
now lacking.
 Recently, the local authorities of the Chatkal 
region have taken a more active role in local 
mining issues. At the local level, in the deci-
sion-making processes for mining, there is a 
push toward decentralization of power to local 
institutions and communities. However, this 
change, whereby local authorities have now 
become more closely involved in local mining 
politics is not a result of administrative chang-
es, but is due to gradual, grass roots level work 
conducted by the local authorities. These au-
thorities are bringing pressure to bear on the 
companies for them to register locally and are 
also providing the companies with informa-
tion about the locally available mining profes-
sionals. Registration of mining companies is 
considered both a financial and transparency 
issue, since it provides tax payments and so-
cial funds for the local district, and improves 
transparency by giving the authorities more in-
formation about company activities. Moreover, 
local registration has become an increasingly 
important issue for companies to obtain the 
social acceptance of the local populations.
 Proposals for further 
development
The Chatkal Valley case reveals that while the 
mining industry may have positive impacts on 
employment and infrastructure, there are also 
negative impacts on the environment and the 
social atmosphere of the region. The increasing 
tension at the local level demonstrates that it is 
essential to resolve the industry’s social issues 
to enable its stable and prosperous develop-
ment.
 For the mining industry to increase its posi-
tive impacts on local economies, it needs to be 
better connected with them. At present, the 
industry is easily perceived as socially-negli-
gent, but mainly responsible for the economic 
development of the Valley. The establishment 
of business relations with local agricultural 
concerns could integrate the industry more 
tightly into its surrounding society. This could 
improve not only the image of the mining 
companies, but also the possibilities for the lo-
cal communities after mine closures have oc-
curred, thus promoting social sustainability 
by making the communities less dependent on 
12 Mining in the Chatkal Valley
the companies. Supporting the traditional local 
economies also would potentially increase the 
employment opportunities for women in the 
region.
 On the whole, stabilizing the situation at the 
local level requires that cooperation between 
all stakeholders be promoted. Mining compa-
nies need to play more proactive roles; they 
should build relationships with local popula-
tions throughout and beyond the operational 
periods of their mines. Access to information 
needs to be improved, while assuring it is 
provided both in adequate quality and quan-
tity. Because, as company representatives have 
stated, it is easier to find a common path with 
locals who have had experience with the indus-
try in their area, then it is essential to increas-
ing the local populations’ knowledge of the ba-
sic workings of the industry. Companies need 
to strive for dialogue and true cooperation with 
the local community. Yet, successful communi-
cation is not only the responsibility of the com-
panies. The local populations need to see the 
possible benefits of working together with the 
companies so that they express their opinions 
through constructive criticism rather than road 
blocks and other forms of direct action. The 
central government and local authorities also 
must coordinate their efforts so as to establish 
closer relations with respect to mining politics.
UNDErLyINg rEAsONs 
FOr ThE EMErgENCE OF 
MININg CONFLICTs IN 
ThE ChATKAL VALLEy:
• poor economic situation
• weak state that is unable to provide ex-
tensive social services
• poor participatory rights
• unrealistic local expectations towards the 
industry
• struggle by local authorities and com-
munities for a more power in decision- 
making processes
• inadequate laws combined with weak 
governance and enforcement
• poor environmental monitoring that al-
lows rumours to develop about environ-
mental conditions 
• communication problems between local 
communities and mining companies.
referenCes
IAIA 2003. Social impact assessment. International principles. Special 
 Publications Series. No. 2. Available in <http://www.iaia.org/publicdoc 
uments/special-publications/SP2.pdf> Downloaded 26.10.2011
Chatkal River. Photo: K. Isabaev
14


Mining in the Chatkal valley : lack of dialogue and poor governance resulting in local resistance - policy brief

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