KYRGYZ REPLY TO MERCURY MINING QUERY

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SUBJECT: KYRGYZ REPLY TO MERCURY MINING QUERY

REF: 06 STATE 202028


1. In response to an Embassy inquiry into official Kyrgyz
attitudes to controls on mercury production, the Kyrgyz MFA
responded via Diplomatic Note 011-14/79 dated January 25,
2007 with answers to five questions derived from reftel. The
translated questions and answers are repeated below:

A) Does Kyrgyzstan support the concept of voluntary
partnerships or a binding treaty to manage mercury?

The Kyrgyz Republic recognizes the serious threat posed by
mercury production to human health and the environment, but
at the same time, Kyrgyzstan cannot refuse the production and
prefers voluntary partnership to legally binding treaties.

B) Are there any current or future plans to reduce or
eliminate mercury production and/or consumption in
Kyrgyzstan? If so, when would these changes take place and
in what quantity?

The production volumes depend on market demand for the
product. There is no simple answer to this question at the
moment, because the demand always fluctuates depending on the
market condition. However, according to statistical data,
mercury output has been continuously decreasing since 2001.
The main consumers of mercury are the USA, European countries
and China. The factory will have no alternative to
decreasing output if the world demand for mercury goes down.

C) How would Kyrgyzstan be affected by a global prohibition
on mercury exports?

A global prohibition on mercury exports can have only
negative impact on Kyrgyzstan at the moment. The town of
Khaydarkan, which completely depends on the mercury factory,
can lose its main, if not its only, employer and taxpayer.
The town may also start experiencing problems with natural
gas and electricity supplies, since the factory pays for
maintenance of natural gas and electricity networks. The
mercury factory provides the majority of jobs in Khaydarkan,
therefore, reduction or suspension of production can make the
town's survival impossible and turn it into a hotbed of
social tension.

D) Would Kyrgyzstan support the establishment of a global
mercury reduction goal? This would be a non-binding
resolution setting targets and timeframes for mercury use
reduction.

Based on the position of health and environment safety,
Kyrgyzstan may consider the issue of supporting this call.
However, under the existing situation, it is possible only if
funds for reorientation of the Khaydarkan factory become
available, because the town cannot survive without the
factory.

E) Would Kyrgyzstan support a global phase-out of primary
mining of mercury?

As it was written above, Kyrgyzstan may consider the issue
only if funds for reorientation of the Khaydarkan factory are
attracted. According to experts, the factory requires more
than 100 million USD for reorientation. Being one of the
leading mercury producers in the world and considering the
demand for mercury, the Kyrgyz Republic cannot refuse mercury
production in the near future.


2. Embassy will relay any additional feedback septel.
LITZENBERGER