EBRD to Finance $300 Million Gold Processing Project in Kazakhstan

The European Bank for Reconstruction and Development (EBRD) will provide a loan of up to $300 million to Solidcore Resources to support a new hydrometallurgical complex to be built in the Pavladar region of Kazakhstan. This significant financing package aims to expand Kazakhstan's domestic gold processing capacity and introduce more sustainable, environmentally friendly technologies to the mining sector. International financial institutions such as Abu Dhabi Commercial Bank, ING Bank and Société Générale are also partnering in the project, where the EBRD is acting as the mandated lead arranger. EBRD officials and Kazakh representatives attended the signing ceremony for the financing agreement, once again emphasizing the economic and strategic importance of the project.

The new facility will have a processing capacity of up to 278.5 kilotons of gold concentrate per year, significantly reducing the company's dependence on external resources. By processing refractory and double refractory gold concentrates to produce doré bars, which are semi-pure alloys, the facility holds the potential to increase value-added production in Kazakhstan's mining sector. The mining sector accounts for a significant portion of the Kazakh economy, constituting approximately 12% of the country's Gross Domestic Product (GDP) and one-third of total merchandise exports. With this new investment, the sector's strategic weight in the country's economy is expected to increase further and contribute more to the value chain.

One of the most striking aspects of the project is the use of the pressure oxidation method, which is accepted as one of the technologies with the highest resource efficiency in the hydrometallurgical industry. This technology maximizes operational safety while minimizing environmental impacts and allows for the processing of complex refractory ores, which make up about half of Kazakhstan's gold resources, not just simple ores. Thus, while the country's mineral supply potential strengthens, its competitiveness in the global mining market will also increase. Technical support from the Green Climate Fund and the EBRD will play a key role in achieving these environmental goals.

Sustainability and governance are addressed as an integral part of the project; thanks to technical assistance to be provided by the Green Climate Fund and the EBRD, Solidcore Resources will strengthen its corporate climate governance. The company aims to set an example in the sector by maintaining Environmental, Social and Governance (ESG) reporting at international standards, not just limited to local requirements. This step creates significant value not only for gold production but also for Kazakhstan's reputation in global capital markets and investor confidence. The project presents a comprehensive model where environmental responsibilities are observed in addition to economic benefits.

The EBRD's economic relations with Kazakhstan are based on a deep and long history; to date, the bank has invested over $12.8 billion in 354 different projects in the country. This figure makes Kazakhstan the EBRD's largest and longest-standing investment destination in Central Asia. The Bank continues to support sustainable development, the green economy transition, and the strengthening of the private sector in Kazakhstan, the largest economy in Central Asia. The new hydrometallurgical facility project constitutes one of the latest and most important links in this long-standing cooperation.