The Tereksaisky mine, which employs 461 people, includes two gold deposits owned by Kyrgyzaltyn since 2002. Small amounts of gold ore have been processed there, which has concerned residents of an adjacent village because of the mine's proximity.
The Kyrgyz authorities said a tender for the mine where 221 kilograms of gold was produced last year could be held before late this year.
"At a meeting with Kyrgyz President Almazbek Atambayev Thursday [Alrosa] President Sergei Vybornov said his company was seeking participation in a potential tender for the Tereksaisky deposits," the source said.
The Tereksaisky mine requires the construction of a gold mining facility tentatively estimated at $70 million. Although Kyrgyzaltyn was the first in the former Soviet republic to attract large foreign investment, the Kyrgyz gold producer lacks the necessary funds, and therefore should attract investment to develop the mine.
Alrosa accounts for 97% of Russia's raw diamond production and for 25% of global output. The Russia's federal government, the largest single owner of Alrosa, is set to increase its current 37% stake in the world's second-largest rough diamond producer to a controlling interest.
The government of Sakha (Yakutia), the Russian Far Eastern republic where most of the company's operations are based, owns 32%. Eight percent belongs to Yakutia's provinces, and the remaining 23% is held by the company's employees.
