RG Gold launches $420 mln ore processing plant, is set to quadruple output and deliver extensive benefits to the local area
The miner, controlled by Bulat Utemuratov's Verny Capital and co-owned by Resource Capital Funds (U.S), will increase production to c.190,000 oz
ASTANA, Kazakhstan, Oct. 11, 2022 /PRNewswire/ -- RG Gold, a leading Kazakhstani gold producer, has launched a new processing plant worth more than US$ 420 million. The added capacity is expected to enable RG Gold to quadruple its output to c. 190,000 troy ounces in 2023. This amounts to approximately five million metric tons of gold-containing ore. It deploys CIP (Carbon in Pulp) technology which uses coal particles during leaching to extract gold from low-grade ore at a low cost.
RG Gold operates RayGorodok deposit in northern Kazakhstan, one of the country's largest mines with 5.9 million ounces of gold reserves, based on the JORC Code. Its output is set to exceed 50,000 troy ounces this year. The company has paid $122 million in taxes (an equivalent of ₸45 bn) since 2015 when Verny Capital became its shareholder. Resource Capital Funds (U.S.) holds a 35% stake in RG Gold.
Bulat Utemuratov, the key investor in Verny Capital projects, said: "The launch of the new processing plant is a key milestone for RG Gold. It is underpinned by the highest global industry standards using the latest innovation and technical expertise from Resource Capital Funds, our strategic partner. The new plant allows us not only to quadruple RG Gold's overall output, but importantly, it also provides the opportunity to boost investment in the region. The company has hired additional staff for the construction and maintenance of the plant, and RG Gold now provides jobs for around 1,200 people. Undoubtedly, it will continue to deliver further socioeconomic benefits, demonstrating RG Gold's ongoing commitment to support local communities and create value for all stakeholders."
Martin Valdes, partner at Resource Capital Funds, said: "We invested in RG Gold in 2018. It was the first time that we invested in Kazakhstan as a firm, and from the very beginning of the due diligence process, we were impressed with the quality of the people, the quality of the institutions, and the commitment from everyone to do mining in a very environmentally friendly way and with the best interest of all stakeholders in front of everything else, especially for the local communities. RG Gold's new production facility was built to leading industry standards which will enable the company to gain access to further growth and expansion."
About Verny Capital
Verny Capital is one of the largest private equity groups in Kazakhstan. Founded in 2006, it holds assets in banking, natural resources, real estate, telecommunications, and other sectors. Mr. Bulat Utemuratov is the key investor of the projects managed by Verny Capital.
About Resource Capital Funds
Resource Capital Funds (RCF) is a private equity firm established in 1988 that specializes in investments in the mining sector. The company has $3.2 billion of assets under management.
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