Press releases

Construction of a new mining and metallurgy complex has begun in Akmola Region

РГ Голд

The total construction cost is USD 425 mln. DBK provided a loan in the amount of up to USD 300 mln for a period of 9 years. RG Processing LLP will provide the rest of the required investment of USD 125 mln. from its own resources.

Construction of a new 67.7 ha mining and smelting enterprise is started in 2020. RG Processing plans to commission the facility in Q3 2022. The facility will be located in Burabay and Bulandy districts of Akmola region, the primary gold ore mined at the Northern and Southern Raygorodok deposits by co-borrower RG Gold LLP are inputs to production process.

РГ Голд

The project is implemented by Verny Capital Group of Companies in partnership with Resource Capital Funds (RCF), the largest private equity fund in the mining industry. RCF is a group of private equity funds under general management that focuses on investments in the mining industry. The Group was founded in 1988, and its investment mandate includes all types of solid minerals and an extensive geography of assets. Since its foundation, RCF has invested in 181 mining companies, with projects in 51 countries and across 30 raw materials.

The MSE process flowchart is uniquely designed for optimum ore extraction with minimum operating costs and the ability to implement global environmental standards. Equipment suppliers are the world’s leading manufacturers, which greatly increases the economic viability of the project in the long term.

рг голд

The sale of output – Doré alloy with 88% gold content – is carried out in full to the refinery in Kazakhstan, with which long-term contract for the output sale has been signed.

“Even though the facility is still under construction, we have already managed to conclude a multi-year contract for the output supply. Doré alloy is of great demand in the domestic market, as we annually produce about 5 tons of gold. With high liquidity and readily available transportation of gold, there is no problem with its sale,” said Lawrence Rossouw, CEO of RG Processing.

Лоуренс Россоу

According to Rossouw, Akmola Region was chosen as the project location because of the plant’s proximity to the resource base, which will significantly reduce the cost of ore transportation. Moreover, the region has the necessary infrastructure and highly qualified personnel.

“Today Akmola Region is the state leader in gold production. It is, therefore, not surprising that the new plant, which can reduce the domestic market demand for Doré alloy, will be right here. This project is important for the region, as it will increase its economic potential, as well as create about 1,000 permanent jobs and 500 temporary jobs during the construction period. The enterprise’s tax deductions to the state budget will be over KZT 20 bln. a year. Given the Bank’s key mission to promote sustainable development of the national economy, it is important to note that the project implementation will significantly replenish the country’s strategic gold reserves”, said Kassym Mukhanbetov, the Senior Banker of DBK Customers Relations Directorate.

Касым Муханбетов

Development Bank has provided a multi-currency loan of up to USD 300 mln., including USD 217 mln. and KZT 34.8 bln. The loan period is 9 years, DBK financial resources will be used for construction and installation works and the equipment purchase. Since the project is included in the map of national industrialization, financing will be through the State Program of Industrial and Innovative Development (SPIID).

Development Bank of Kazakhstan JSC (DBK) is the national development institution for the modernization and development of non-raw-materials and infrastructure sectors of the economy in Kazakhstan, established in 2001. The major activities: develop industrial infrastructure and manufacturing industry, promote and attract foreign and domestic investment in the national economy. DBK is one of the largest investment operators of state programs of industrial and innovative development. DBK is attached to Baiterek National Managing Holding JSC.

RG Processing LLP is the company established in October 2018 to implement the Construction and Commissioning of a New Gold Processing Plant To Process Primary Ores of RG Gold LLP, which annually processes about 2.1 mln. tons of ore produced at the Raygorodok deposit in Burabay district in Akmola Region by heap leaching.

Public Relations Department of Development Bank of Kazakhstan JSC: +7 (7172) 79 26 08 (www.kdb.kz, facebook.com/kdb.kz, Twitter@KDBkz

Public Relations Department of RG Gold LLP and RG Processing LLP: press@rggold.kz

АО «Банк Развития Казахстана»
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+7 (7172) 79 26 79