Project Koktaszhal

Location:

Kazakhstan

Project number:

46788

Business sector:

Natural resources

Notice type:

Private

Environmental category:

A

Approval date:

11 Feb 2015

Status:

Repaying

PSD disclosed:

09 Oct 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing long-term debt financing to AltaiPolimetally LLP and Terekty Ken Baitu LLP in order to support development of the Koktaszhal copper-gold deposit located in the Karaganda region of Kazakhstan and to build a processing plant with 4 million tons annual capacity.

Transition Impact

The project is expected to have positive transition impact through:

(i) the support of an independent private player in the Kazakh copper sector, helping strengthen its market position;

(ii) setting high standards of corporate governance and business conduct by requiring consolidated financial statements prepared in accordance with IFRS and regular auditing, as well as introducing best practices in EHS;

(iii) demonstration effect and replication potential of new mining and processing techniques which would have a positive impact on EHS and on the profitability of the project.

The Client

AltaiPolimetally LLP (incorporated in October 2007) and Terekty Ken Baitu LLP (incorporated in April 2014) are the license holding entity and the processing plant developer correspondingly.

EBRD Finance

A long-term senior secured loan of up to USD 100 million with possible warrants.

Project Cost

Approximately USD 265 million.

Environmental Impact

Category A. The development of a new open pit mine and associated processing plant requires a comprehensive ESIA and public consultation. However, it should be noted that construction of the facility was advanced at the time of our appraisal (September-October 2014), therefore, our ability to influence design of the project, and the extent to which public consultation on the ESIA can be factored into design, is limited. An independent environmental and social consultant was retained to review the project against the requirements of the EBRD.  Based on this review, some additional information was provided in form of a supplemental report, and other items (some required to achieve compliance with PRs) were identified to be addressed in the form of an Environmental and Social Action Plan. 
 
The following documents (in English and Kazakh except as noted) have been available for public review since 14 November 2014:
 
1. Original local EIA in Russian language
2. Supplemental report
3. Non-technical Summary
4. Stakeholder Engagement Plan
5. Environmental and Social Action Plan
 
Please note that the documents were updated in April 2015 to clarify an issue about the site location relative to a protected lake.  There are at least two lakes in the region names “Saumalkol” which roughly translates to “salty lake”.  One Lake Saumalkol is protected, and is located over 100 km away from the site, to the southwest.  The Saumalkol lake near the site that will be used as water supply for the site is not protected nor is it designated as an Important Bird Area.  This issue has been clarified in the revised reports.
 
Actions identified in the ESAP include:
  • Upgrading the environmental and social management systems and personnel,
  • Preparation fo various Operational management plans covering items such as waste management, contractor control, traffic management and cultural resources,
  • Additional hydrological and biological studies of the adjacent Lake Saumalkol and nearby Karasu River, and
  • Implementation of a Stakeholder Engagement Plan and Grievance Mechanism.
Implementation of the ESAP will bring the operations into compliance with EBRD PRs and this will be monitored by the Environment and Social Department.
 

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

None.

Company Contact

Vadim Udovenko,
Terekty Ken Baitu LLP, Director
Tel.: +7 727 3528605, +7 727 3528606

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.