Proposed construction of a power line to connect the Zun Holba gold mine to the local power grid, thus reducing (i) emissions from diesel generators, (ii) environmental risks associated with the transportation of diesel fuel over long distances and (iii) reliance on high cost diesel-generated electricity.
To finance the construction of two legs of a power line connecting the Zun Holba mine to the regional power grid. This investment will (i) significantly reduce emissions relating to the diesel generators currently being used to supply electricity, (ii) decrease the environmental risks arising from transportation of diesel fuel over 300 km from the rail line, (iii) allow two nearby communities to access the national power grid and (iv) reduce the company's reliance on high-cost electricity.
By providing this financing, the Bank would demonstrate its continuing support of a successful private sector company that is seeking to improve environmental performance, reduce input costs and increase competitiveness.
Buryatzoloto is a joint-stock company incorporated in Russia. In 1996, the company benefited from EBRD debt and equity financing aimed at upgrading and expansion of its two gold mines in the Republic of Buryatia.
Corporate loan of US$ 8.15 million (€8.9 million).
US$ 8.5 million (€9.2 million).
This Project was screened B/0, requiring an environmental analysis to address the environmental impacts associated with the proposed operation. This was carried out on the basis of review of: the environmental, health and safety report submitted within the technical feasibility study and of the construction and operation permits in accordance with the applicable Russian environmental, health and safety regulations national legislation. As a result of the environmental analysis, an Environmental Action Plan (EAP) has been developed to address the outstanding environmental issues such as, inter alia, analysing the PCBs content in the transformer oils; developing of an environmental monitoring program for the construction and operation periods; and equipping the transmission line with anti-perching devices to prevent electrocution of big birds. The loan agreement will covenant implementation of the EAP as well as compliance of all the new equipment and works with the Russian and EU environmental, health and safety standards; and submission of an annual report to the Bank on environmental, health and safety matters associated with the Project, including a summary of any material notices, reports and other communication on environmental matters with the authorities.
The positive environmental impact of this financing arises from discontinuing the use of 15 diesel generators, which currently produce power for the Zun Holba mine, thereby reducing the atmospheric air emissions and eliminating the risk associated with transportation of large quantities of diesel fuel by trucks for over 300 kilometres. There is a positive social impact that two small isolated communities near the Zun Holba mine will also be connected to the main power grid as a result of this financing.
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Text of the PIP