In Uzbekistan, Economic Reforms Spark Modern-day Gold Rush
Wed Mar 27 2024
Sifting through a greyish mixture of sand and pebble in the steppe of Uzbekistan, Khislat Ochilov was searching for gold.
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.
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.
Source: https://www.barrons.com/