EBRD finances first large-scale refractory concentrate processing facility in Central Asia

• EBRD lending US$ 300 million to Solidcore Resources
• Funds will help to launch the first refractory concentrate processing facility in Central Asia
• EBRD to act as project’s anchor lender for group of international co-lenders

The European Bank for Reconstruction and Development (EBRD) is contributing to the development of sustainable and ecologically responsible mining and processing in Kazakhstan by supporting the operations of its long-term client Solidcore Resources (SR), an AIFC-listed company and the country’s leading gold producer.

The EBRD will provide a loan of up to US$ 300 million (€255 million) to SR and Ertis Hydrometallurgical Plant (a fully owned subsidiary of SR) for the construction of the Ertis pressure oxidation hydrometallurgical complex in the Pavlodar region of Kazakhstan. It will be able to process up to 278.5 kilotonnes of gold concentrate annually and will reduce SR’s dependence on external processing.

The Bank will be an anchor lender for the project, with Abu Dhabi Commercial Bank, ING Bank and Société Générale acting as co-lenders.

This pioneering facility in Central Asia will process refractory and double-refractory gold concentrates into doré bars (a semi-pure alloy of gold). Once completed, the project is set to establish a new metallurgical segment in Kazakhstan, increasing the value-added production of the domestic mining sector, which contributes to 12 per cent of GDP and about one third of all commodity exports.

Through this project, SR will introduce pressure oxidation, one of the most resource-efficient, environmentally friendly and safe technologies in the hydrometallurgical industry. Already tested by the company in similar projects, it will help to create infrastructure for the development of complex refractory ores, which represent about half of Kazakhstan’s gold resources. This will boost the country’s global competitiveness and its mineral supply potential.

The project will benefit from technical assistance provided by the Green Climate Fund and the EBRD. These funds will allow SR to strengthen its corporate climate governance and environmental, social and governance (ESG) reporting practices beyond local requirements. 

The EBRD has invested almost US$ 12.8 billion (€11 billion) in Kazakhstan to date through 354 projects, making the country the largest and longest‑running recipient of EBRD investment in Central Asia.