A leading gold producer in Kazakhstan, RG Gold, has launched a new $420 million processing plant that is expected to quadruple its output to roughly 190,000 ounces (oz) in 2023. RG Gold is majority owned by Verny Capital (65%), a Kazakh private equity group, and Resource Capital Funds (35%).
The new plant’s annual processing capacity amounts to approximately 5 million metric tons (mt) of ore. It uses carbon-in-pulp (CIP) technology during leaching to extract gold from low-grade ore at a low cost. The plant has been designed and constructed in accordance with all international safety and environmental requirements.
RG Gold operates RayGorodok deposit in northern Kazakhstan, one of the country’s largest mines with 5.9 million oz of gold reserves. Its output is set to exceed 50,000 oz this year.
“The launch of the new processing plant is a key milestone for RG Gold,” said Bulat Utemuratov, the key investor in Verny Capital projects. “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.”
“We invested in RG Gold in 2018,” said Martin Valdes, partner at Resource Capital Funds. “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.”