DUSHANBE , July 19, Asia-Plus - It is unprofitable to create  enterprises on production of gold ware in Tajikistan , Mahmadullo Gulov, Deputy Minister of Industry, remarked at a news conference in Dushanbe on July 19.  

According to him, it is connected with payment of value added tax (VAT) for precious metals in Tajikistan .  “With paying VAT, gold and silver wares produced in Tajikistan will cost at least 20 percent more than those imported to the republic.”

“Export of gold and realization of it to the state (Ministry of Finance and the National Bank of Tajikistan) are exempted from VAT, while domestic producers purchasing gold inside the country, have to pay a 20-percent VAT for precious metals,” said Mr. Gulov, “That is why it is more profitable for domestic producers to purchase gold for producing jewelry from other countries because in this case, they will pay only a five-percent excise.” 

Mr. Gulov also noted some 99 percent of gold ware coming on the market in Tajikistan is imported from Uzbekistan , Turkey and the United Arab Emirates (UAE).  

According to information from the Ministry of Industry, Tajikistan has 28 known gold deposits containing an estimated more than 400 tons of gold.  Tajikistan produces just 2.1 tons of gold per year, most of which comes from the deposits operated by the Zarafshon Gold Company (ZGC).  ZGC is a joint venture with Nelson Resources Ltd (44%) and the Tajikistan government (51%) and the IFC (5%).  The other gold producer is JV Darvoz that produces gold from its alluvial operation at the Yakhsu deposit, located in the Khatlon province in southern Tajikistan .  It reportedly has proven reserves of around 25 tons gold. The Darvoz joint venture includes a 49% interest from UK based Gold and Mineral Excavation.  The third joint venture company developing Tajikistan ’s gold potential is Canadian Gulf International Minerals, which has a 49% interest in the Aprelevka joint venture. The Aprelevka deposit has estimated proven reserves of over 500 000oz.