Project number:


Business sector:

Natural resources

Notice type:


Environmental category:


Approval date:

14 Sep 2010



PSD disclosed:

16 Sep 2011

Translated version of this PSD: Russian

Project Description

The EBRD has invested 1.53 billion roubles to support GV Gold’s capex programme related to modernisation, expansion and further development of its gold mining operations in Irkutsk region and the Republic of Sakha (Yakutia) over the next few years. The Bank’s investment will also contribute to further improvement in the Company’s corporate governance standards and EH&S practices and help GV Gold gain access to international capital markets.

Transition Impact

The TI potential of the project lies on

(i) support of private sector development and increased consolidation and competition in the project sector and
(ii) setting higher standards of transparency, corporate governance and EH&S practices.

  • Through the proposed financing, the Bank will contribute to support the successful development of a medium-sized privately-owned gold producer via both organic and M&A expansion in the Russian gold market dominated by a handful of leaders and a multitude of small and medium-sized producers leaving a room for further consolidation as scale remains a key success factor and competition is on a global level.
  • The Company will implement an action plan agreed with the Bank to bring corporate governance and transparency in line with best international standards, including adherence to “publish what you pay” principles.
  • The Bank will also be instrumental in ensuring GV Gold implements high environmental standards across all its operations in accordance with the Bank’s Performance Requirements (PRs).

The Client

GV Gold is a privately owned company among the Russia’s top ten gold producers with gold mining activities in Irkutsk region and the Republic of Sakha.

EBRD Finance

Equity investment of RUB 1.53 billion.

Project Cost

RUB 8.55 billion.

Environmental Impact

The Project has been categorised as “B” according to the EBRD’s Environmental and Social Policy (2008). The impacts associated with the project, namely mine expansion and exploration works at the Company’s Irkutsk and Yakutia operations, will be site specific and readily addressed through sound mitigation and EHSS management practices. Due diligence carried out by the Bank included a detailed review of the Company’s corporate environmental and social risk management capabilities and an extended visit to the Irkutsk operating mine.

Results of the corporate environmental, health, safety and social (EHSS) audit identified that GV Gold presently lacks adequate management systems and overall capacity to implement the Bank's Performance Requirements. At the operational level, due diligence highlighted certain areas around environmental management and employment conditions which require to be addressed to bring these activities into compliance with the Bank’s Performance Requirements.
The Bank and the Company have agreed on the ESAP for the project based on compliance with RF legislation, industry best practice, the Bank’s PRs and EU environmental protection standards, which is particularly important given the sensitivity of open-pit mining. The Bank has also agreed with the Company that it would comply with principles of International Cyanide Management Code for the gold mining industry over an agreed period of time. The Bank’s ESDD will work closely with the company to ensure implementation of the ESAP including completion of several actions in the near future.

Technical Cooperation


Company Contact

Maxim Gorlachev, Head of Moscow Office
OJSC Vysochaishy (GV Gold)
House 3/1, 2nd Kadashevskiy pereulok
Tel: + 7 495 2878840; Fax: + 7 495 2878841

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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