The exploration and development of base metal and precious metal licenses in Russia and Mongolia. EBRD has invested in the Company so it can conduct preparatory work on the Karakul cobalt-copper deposit (its eventual development will require a preliminary full Environmental Impact Assessment meeting international standards), and so that the Company can complete the acquisition of nearby satellite deposits.
The transition impact potential of the project derives from the support given to a private, independent mining company operating in the Russian Federation and in Mongolia.
Through its Board representative, EBRD has the opportunity to influence the company’s decisions, namely improving Environmental Health & Safety (EHS) practices and corporate governance standards, including adoption by the Company of the Equator Principles, introduction of audited financials, implementation of Publish What You Pay/Extractive Industries Transparency Initiative as applicable, implementation of an EHS action plan and compliance with UKLA (UK Listing Authority) Principles of Corporate Governance.
Imperial Mining Holding Limited, incorporated in the Isle of Man, is the owner of mining interests in Mongolia and Russia through subsidiary companies incorporated in those countries. The key mining licence for the Karakul deposit is owned and managed by the Company’s subsidiary, Limited Liability Company AltaiRudalMetal.
An equity investment of US$21 million in Imperial Mining Holding Limited.
Imperial Mining Holding Limited is currently reappraising total project costs and funding plans.
The investment involves exploratory and preparatory work for the Karakul cobalt-copper deposit in the Russian Federation (reserves delineation, engineering and geological work, construction of access roads and accommodation site as well as personnel training and completion of a full feasibility study) and the acquisition of nearby satellite deposits. Because the adverse environmental and social impacts associated with these works would be site-specific and could be identified and addressed through mitigation measures, the project has been categorised B/1 in accordance with the EBRD Environmental Policy 2003.
For the first phase of the project, which does not involve mining operation or any associated activities, only an Environmental Analysis for the proposed works and a Corporate Environmental Audit have been carried out. The Environmental Analysis concluded that the environmental impacts resulting from the proposed works would be limited and could be minimised through implementation of the identified mitigation measures. As result of the Corporate Environmental Audit, an Environmental Action Plan (EAP) was developed and agreed with the Client. The EAP mainly covers actions required for the development of an integrated Environmental, Health and Safety Management System for the Company. The Company fulfilled the requirements of the EAP agreed for the initial stage.
The potential subsequent phases involving the full-scale development of the Karakul deposit would require the preparation of a full-scale Environmental and Social Impact Assessment (ESIA) prior to possible development. Production or other works will not start until all authorisations required by Applicable Law are obtained and all environmental and social due diligence required under the applicable environmental and social policies of EBRD are carried out.
In 2008, an environmental audit was carried out by independent consultants before the planned acquisition of a new satellite license, ‘Emily’ and three other satellites, Tosh-Oz, Yantou, and Koruozek. Based on the outcomes of the Emily audit, a robust EAP was agreed with the Company which is expected to result in significant improvements in environmental, health, safety and social issues. Any new development initiatives for those license areas will be carefully assessed by the Bank through a detailed due diligence to be conducted in order to ensure they meet EBRD environmental policy requirements.
The environmental audit and analysis was carried out for the satellites Tosh-Oz, Yantou,and Koruozek confirmed that these deposits are located within an Important Bird Area (IBA) of international significance. This necessitates a number of important measures to protect habitats. As a minimum, any proposed development for this area must be preceded by comprehensive environmental assessments to help ensure that the ecology of the area is effectively protected.
Imperial Mining Holding Limited
15-19 Athol Street, Douglas, Isle of Man IM11LB
Business Centre "Regus", 3rd floor, "Voentorg" building
10, Vozdvizhenka str., Moscow 125009, Russia
phone: +7495 797 3640, 3639
fax: +7 495 797 3600
Alexei Musteatsa, Director
phone: +7495 797 3640
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Tel: +44 20 7338 7168
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