Using Mining as a Diver of the Sustainable Local Economic Development: Case Study of Orlovka Town

Abstract

Historically mining was considered as one of the major industries which can help developing countries overcome economic problems. However, the recent experience shows that some countries were unable to use benefits from mining effectively, which eventually lead to negative consequences. The Kyrgyz Republic is small landlocked developing country, which does not have significant competitive advantages. However the country is endowed with natural resources, the main of which is gold. Today the Kyrgyz mining industry attracts more and more public attention, as it was considered as a strategic industry by the government of the country. In the middle of the summer 2015 the third largest gold mine will start its operation in Orlovka town, Chui oblast. The mine will be exploited by the Kyrgyz-Chinese company “Altynken”, which is going to become the main city-forming enterprise in the region. The expected proceeds from the company are viewed to be tremendous for such small town. Therefore, it is believed that Orlovka town is going to become flourishing town not only in the region, but also in the country. In order to start its economic development the town first of all should identify the key opportunities, which the new enterprise brings to the town. Therefore it is essential from the very beginning to identify the main areas of the development. Unfortunately, the town officials and the population do not realize the full scope of the opportunities, which the new mine gives to the region. The purpose of the research is to study how the new mining project in Orlovka can increase economic development of the city by developing preliminary development plan with consideration of principles of sustainable development. Such study is unique for Kyrgyzstan, because the relationship between mining and local economic sustainable development have not been deeply studied in the country.