The Fort Worth Press - In Uzbekistan, economic reforms spark modern-day gold rush

USD -
AED 3.6725
AFN 64.494756
ALL 81.598713
AMD 359.67278
ANG 1.789785
AOA 918.000208
ARS 1538.260398
AUD 1.421858
AWG 1.8025
AZN 1.693911
BAM 1.758181
BBD 2.017808
BDT 124.280834
BGN 1.747831
BHD 0.378105
BIF 3005.600554
BMD 1
BND 1.283543
BOB 11.917476
BRL 5.352201
BSD 1.001892
BTN 95.226537
BWP 13.859348
BYN 2.947424
BYR 19600
BZD 2.014932
CAD 1.406275
CDF 2314.999721
CHF 0.830245
CLF 0.024972
CLP 986.040307
CNY 6.66835
CNH 6.666145
COP 3151.86
CRC 455.595609
CUC 1
CUP 24.044517
CVE 99.123517
CZK 21.881896
DJF 178.40785
DKK 6.722025
DOP 61.444278
DZD 135.369852
EGP 56.14368
ERN 15
ETB 162.972609
EUR 0.899349
FJD 2.243699
FKP 0.75114
GBP 0.75245
GEL 2.570497
GGP 0.75114
GHS 11.676555
GIP 0.75114
GMD 73.999918
GNF 8866.375106
GTQ 7.656419
GYD 209.942467
HKD 7.84472
HNL 26.89794
HRK 6.76901
HTG 131.239943
HUF 330.105013
IDR 18166
ILS 3.098303
IMP 0.75114
INR 95.22695
IQD 1518.788206
IRR 1857000.000207
ISK 122.670033
JEP 0.75114
JMD 159.404525
JOD 0.709014
JPY 157.858024
KES 129.909972
KGS 87.449204
KHR 4090.273689
KMF 441.000077
KPW 899.999961
KRW 1337.48013
KWD 0.31132
KYD 0.834862
KZT 457.910823
LAK 22548.645041
LBP 89716.422674
LKR 333.065143
LRD 170.315667
LSL 16.709083
LTL 2.952739
LVL 0.60489
LYD 6.436563
MAD 9.868303
MDL 18.093068
MGA 4560.450921
MKD 55.35329
MMK 2099.630718
MNT 3601.077836
MOP 8.095253
MRU 40.249373
MUR 47.549701
MVR 15.449945
MWK 1737.250425
MXN 18.681115
MYR 4.079905
MZN 63.910092
NAD 16.709008
NGN 1344.540146
NIO 36.866069
NOK 9.334902
NPR 152.363829
NZD 1.783502
OMR 0.384498
PAB 1.001888
PEN 3.451546
PGK 4.491231
PHP 64.053502
PKR 277.234306
PLN 3.95895
PYG 5828.864747
QAR 3.652104
RON 4.811894
RSD 105.694014
RUB 80.501108
RWF 1482.753351
SAR 3.750764
SBD 8.064647
SCR 13.986932
SDG 601.515787
SEK 9.95784
SGD 1.28196
SHP 0.749344
SLE 22.874977
SLL 20969.504398
SOS 572.550994
SRD 37.6505
STD 20697.981008
STN 22.02465
SVC 8.766631
SYP 13001.999685
SZL 16.701501
THB 33.8175
TJS 9.217057
TMT 3.5
TND 3.000388
TOP 2.40776
TRY 49.837115
TTD 6.800611
TWD 32.414703
TZS 2644.982953
UAH 45.735578
UGX 4393.203883
UYU 40.165228
UZS 11956.976101
VES 886.72915
VND 25842
VUV 118.98361
WST 2.767767
XAF 589.934591
XAG 0.018563
XAU 0.000248143884
XCD 2.70255
XCG 1.805556
XDR 0.707052
XOF 589.934591
XPF 107.209637
YER 236.149824
ZAR 16.663225
ZMK 9001.205413
ZMW 20.204154
ZWL 321.999592
SSP 5745.470209
MXV 2.10654
  • RIO

    -0.3300

    97.04

    -0.34%

  • CMSC

    -0.0400

    20.67

    -0.19%

  • RELX

    0.0000

    33.41

    0%

  • RBGPF

    0.0000

    67.95

    0%

  • BCE

    -0.0700

    21.99

    -0.32%

  • BCC

    -0.0300

    75.66

    -0.04%

  • GSK

    0.8600

    51.08

    +1.68%

  • JRI

    -0.0300

    11.52

    -0.26%

  • NGG

    -0.1200

    76.68

    -0.16%

  • CMSD

    0.0900

    20.54

    +0.44%

  • BTI

    -0.0800

    55.75

    -0.14%

  • AZN

    2.0200

    168.1

    +1.2%

  • BP

    -1.4200

    43.16

    -3.29%

  • RYCEF

    0.4600

    19.7

    +2.34%

  • VOD

    0.0700

    17.02

    +0.41%

In Uzbekistan, economic reforms spark modern-day gold rush
In Uzbekistan, economic reforms spark modern-day gold rush / Photo: © AFP

In Uzbekistan, economic reforms spark modern-day gold rush

Sifting through a greyish mixture of sand and pebble in the steppe of Uzbekistan, Khislat Ochilov was searching for gold.

Text size:

He is one of hundreds of new prospectors trying to strike it rich in a modern-day gold rush in the Central Asian country, chock-full of the precious metal.

A right once preserved for state mining firms, recent regulatory changes designed to boost the economy mean anyone can now hunt for gold.

Ochilov scanned the shiny flakes that appeared on his panning mat, submerged in a pool of water. Finally, he spotted a piece the size of a grain of rice.

"Not bad. Though my record is seven grams," the 25-year-old told AFP while out in the Uzbek steppe, near the southwestern village of Soykechar.

Nearby, Sardor Mardiyev, 28, was hard at work digging through the earth in the vast Navoi region, a district larger than Portugal.

He drives his excavator 12 hours a day, six days a week as part of a frenzy for the metal that officials hope will boost Uzbekistan's output.

Last year, the country produced 110.8 tonnes of gold, putting it tenth place globally, and its central bank was the second largest net seller in the world at around 25 tonnes, behind only Kazakhstan, according to the World Gold Council.

For Uzbek President Shavkat Mirziyoyev -- who sees himself as a reformer opening up and liberalising his country's economy after years of isolation and centralisation -- it is not enough.

He has ordered gold production to be increased by 50 percent by 2030.

The potential is there -- only 20 percent of Uzbekistan's subsoil has been explored to date.

Mirziyoyev, in power since 2016, has also called for gold bars weighing up to one kilogramme to be sold in the hopes of drawing more tourists to his landlocked Central Asian nation.

- Local jobs -

Zahit Khudaberdiyev, in his 30s, is among hundreds of entrepreneurs who have decided to try their luck since the regulation change.

To join the gold rush he acquired the rights to a plot of land for three years at auction.

"Before 2019, we didn't have the right to mine gold. Some did it anyway at the risk of death -- it was dangerous," Khudaberdiyev said.

His competition includes Kazakh and Chinese prospectors who secured neighbouring plots. If this one doesn't prove bountiful, he said he'd look further afield.

Behind Khudaberdiyev, trucks and diggers bustle with activity. He said they churn up tonnes of rubble and can help scourers unearth "a daily average of 12 to 15 grams."

As he spoke, he had one eye glued to his phone, monitoring global gold prices.

In March they climbed to a record high of $2,200 per troy ounce (31.1 grams).

"The government decided to issue such plots for gold mining to provide work for the population," he said.

The prospecting rush is providing an unexpected employment boon for a country where 20 percent of workers are forced to go abroad for work, mainly to Russia.

Khudaberdiyev gave the example of his young employees, locals Ochilov and Mardiyev. Before he hired them, one was unemployed, the other a farm hand.

"Now they earn three to four million som (240 to 360 euros) on average" each month, Khudaberdiyev said -- a decent salary for the region.

- Farmers' angst -

The new wave of gold miners are not allowed to do as they please with the gold they dig up. All of it must be funnelled through the Uzbek central bank, which trades it for dollars on the global market.

The country's growing economy depends on injections of foreign currency to support the national currency. The Uzbek som has one of the lowest face values in the world, with $1 worth 12,500 som.

In Soykechar, where farming remains a vital sector, not everyone is thrilled about the gold rush.

"Prospectors dig where we graze our cattle," said Erkin Karshiev, a leading farmer in the region, located some 500 kilometres (300 miles) southwest of the capital Tashkent.

"Look how the last guys left everything," the 66-year-old farmer said, motioning frustratedly to holes a dozen metres deep.

Karshiev said he was "really afraid the animals will fall in". But his multiple calls on the authorities to resolve the issue have thus far gone ignored.

"We only want one thing: for the gold miners to level the land by filling in the holes when they leave."

H.M.Hernandez--TFWP