ALMATY – The European Bank for Reconstruction and Development (EBRD) and Polymetal have signed a $140-million investment agreement to develop the Kyzyl gold deposit in the East Kazakhstan region.
The agreement was signed by the EBRD President Suma Chakrabarti and the Polymetal UK JSC president Igor Finogenov on Thursday in Astana.
A $140 million loan will be issued to Bakyrchik Mining Venture LLP, a 100% subsidiary of Polymetal International Plc, to finance the development of the Kyzyl gold deposit.
“We are pleased to come to an agreement with the European Bank for Reconstruction and Development to raise funds for the Kyzyl project that is equally important for Polymetal and Kazakhstan. It’s a large and complex project, so the EBRD’s financial participation is very important. Working with the EBRD, we will introduce the best environmental and social management practices,” Finogenov said.
EBRD President Suma Chakrabarti hailed the signing of the agreement and noted, “the Kyzyl project is the second under the EBRD’s new approach to inclusion in the energy and natural resources sector of Kazakhstan.”
The Kyzyl gold deposit is located in northeastern Kazakhstan. Kyzyl is a world class deposit with estimated JORC reserves of 7.3 Moz of gold at an average grade of 7.7 g/t. The Project is expected to produce up to 1.8 mtpa of ore by open pit mining during the first 10 years. The ore will be processed by sulphide flotation followed by concentrate offtake and/or pressure oxidation (POX).
