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Bishkek, Kyrgyzstan, June 4, 1998
Kumtor Operating Company (KOC) today confirmed that it has received reports that a woman from the village of Barskoon has passed away while being treated in the hospital in Karakol.
The woman had been admitted to the hospital earlier this week. KOC has no official information at this time as to the nature of her illness nor of the cause of her death. Doctors from the company observed the autopsy but were not allowed to participate or to take samples for independent analysis. As a goodwill gesture, the company has contributed a substantial sum of money to the family to cover funeral expenses and other costs.
Officials of the government of Kyrgyzstan and of the Kumtor Gold Joint Venture have flown to Karakol in order to personally investigate. More information will be released as soon as it is available and confirmed by reliable sources.
KOC has continued to work closely with the communities of Barskoon and Tamga during the past two weeks since the accident and has reached agreements of understanding outlining the commitment of the company to the villagers. The agreements have been arrived at after thorough consultation with the local people and their leaders to ensure that their major concerns have been addressed.
Both agreements contain provisions for the construction of a modern water supply system which will deliver fresh water to the villages. The pipeline and canals will be built by workers from Barskoon and Tamga. Construction is expected to begin immediately. When completed the improvements will provide a steady supply of fresh water for use in the villages and for irrigation purposes.
As a goodwill gesture, KOC will also make a direct financial contribution to the residents of Barskoon and Tamga. Payments will be based on a formula of 1000 soms to every person over the age of 10 and 500 soms to those under 10 years of age. Total cost to KOC is estimated at between 8 to 10 million soms ($400,000 to $500,000 US). Payments are expected to begin as soon as suitable arrangements can be made.
KOC also agreed to buy significant quantities of seasonal fruits and vegetables from local producers.
In addition to these commitments, KOC will also establish two cooperative committees with representatives selected from the villages, the company and the majority owner, Kyrgyzaltyn. The committees' work will focus on efforts to relieve the high unemployment in the villages and the development of other economic opportunities. The committees will become a permanent link between the minesite and the villages that are its closest neighbors, located about 80 km from the site.
Prior to the signing of the agreements, KOC had begun a program of humanitarian aid to the villagers. Since May 21, 1998 KOC has delivered a continual supply of fresh water for the population as well as a variety of medicines and foodstuffs for the local hospitals. The program is ongoing.
At the request of an association of tour operators from the Lake Issy-Kul region, KOC agreed to sponsor a promotional marketing campaign intended to reassure potential visitors that the lake remains a safe location to enjoy a summer vacation. The campaign will begin immediately. Costs to KOC are anticipated to be about $66,000 (US). The campaign will include television and print advertising in Russia, Kazakhstan and Uzbekistan as well as other initiatives.
Gerhard Glattes, president of KOC, also noted that the company is anticipating the release of a number of reports over the next few weeks from several independent international experts who are in Kyrgyzstan at the invitation of the government of the Republic and the Jogorku Kenesh in order to investigate the accident and its impacts. Included are reports from the World Health Organization, the Russian Academy of Sciences and a team of Canadian experts selected by the government of Canada.
Glattes reiterated the company's deep regret for the accident and his confidence that the cleanup after the spill returned the water and soil conditions to normal. He also acknowledged the company's concern for those who have been hospitalized. A number of support programs are in place to ensure that adequate foodstuffs reach these patients until their release.
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For further information, please contact:
Irene Lewis
Director, Corporate Relations
Kumtor Operating Company
(3312) 42-22-82, 42-24-88, 42-37-19