BAKU, Azerbaijan, June 21
By Nargiz Sadikhova - Trend:
Kazakhstan Development Bank (DBK) has opened financing for Construction and Operation of Primary Gold-Bearing Ores Processing Facility Project in country’s Akmola region, Trend reports citing the DBK.
The enterprise’s production capacity will be 5 million tons of ore per year, and the output is planned to be produced in the form of ingots of Doré alloy with 88 percent gold content.
The total construction cost is $425 million, of which DBK provided a loan in the amount of up to $300 million for a period of 9 years. The company implementing the project - RG Processing LLP - will provide the rest of the required investment of $125 million from its own resources.
Construction of a new 67.7 ha mining and smelting enterprise started in 2020. RG Processing plans to commission the facility in 3Q2022. The facility will be located in Burabay and Bulandy districts of Akmola region, the primary gold ore mined at the Northern and Southern Raygorodok deposits by co-borrower RG Gold LLP are inputs to production process.
The project is implemented by Verny Capital Group of Companies in partnership with Resource Capital Funds (RCF), the largest private equity fund in the mining industry.
The sale of produced goods – Doré alloy with 88 percent gold content – will be carried out in full to the refineries in Kazakhstan, with which long-term contract for the sale has been signed.
Akmola Region was chosen as the project location because of the plant’s proximity to the resource base, which will significantly reduce the cost of ore transportation. Moreover, the region has the necessary infrastructure and highly qualified personnel.
Development Bank of Kazakhstan JSC (DBK) is the national development institution for the modernization and development of non-raw materials and infrastructure sectors of the economy in Kazakhstan, established in 2001.
The major activities: develop industrial infrastructure and manufacturing industry, promote and attract foreign and domestic investment in the national economy. DBK is one of the largest investment operators of state programs of industrial and innovative development. DBK is attached to Baiterek National Managing Holding JSC.
RG Processing LLP is the company established in October 2018 to implement the Construction and Commissioning of a New Gold Processing Plant To Process Primary Ores of RG Gold LLP, which annually processes about 2.1 million tons of ore produced at the Raygorodok deposit in Burabay district in Akmola Region by heap leaching.
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