RG Gold starts production at new processing plant

October 10, 2022

The gold mining company RG Gold, which is developing the Raygorodok deposit in the Akmola region, has launched a new plant with a processing capacity of up to five million tonnes of ore per year. The new plant will allow the company to increase annual production volume to six tonnes of Dore gold. 

The plant was designed by international engineering companies with a focus on the automation of production and the application of the latest technologies in metallurgy. It was built in a record 1.5 years by the general contractor “AAEngineering Group” and operates according to the CIP (carbon in pulp) method. The plant is fitted with modern equipment supplied by global industry leaders, including Metso Outotec (Finland), ThyssenKrupp (Germany), FLSmidth (Denmark), Weir Minerals (U.K.), Roytec and Kemix (both South Africa), which ensures the safety of personnel and increases production efficiency at low operating costs.

RG Gold prioritised reducing carbon emissions while designing and constructing the plant. In addition to this, the company will clean and neutralize the cyanide used in production, in accordance with international requirements. All preliminary treated and neutralized wastes will be sent to tailings with a capacity of over eight million cubic meters, built under the supervision of international specialists.

Mr. Lawrence Rossouw, RG Gold CEO, notes that the company was able to complete construction efficiently and on time thanks to the professionalism of the project team: “It is a huge achievement – to complete the construction of the plant in just 18 months, despite the logistical difficulties caused by the pandemic and the geopolitical situation. The project team and general contractor were able to accomplish what seemed impossible.”

Yerlan Ospanov, CEO of the Verny Capital Group of Companies (RG Gold’s largest shareholder), commented: “Verny Capital always tries to maintain high quality standards in the implementation of any project, and the new plant is no exception. We stand for responsible investment and by quality, we mean not only the technical characteristics of the plant, but also its focus on sustainable practices. For us, as a shareholder, it is important to see how the Raygorodok deposit is gradually turning into a valuable and profitable asset contributing to the welfare of the region.

Martin Valdes of Resource Capital Funds (the US private equity fund and RG Gold’s second largest shareholder), added: “We invested in RG Gold in 2018. It was the first time that Resource Capital Funds invested in Kazakhstan, 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, prioritising the best interest of all stakeholders, especially the local communities. RG Gold’s new production facility adheres to the best industry standards which will enable the company to gain access to further growth and expansion.”

Investments in the project amounted to $424 million, 30% of which is financed by shareholders, and the remaining $297 million is borrowed from the Development Bank of Kazakhstan.

The CIP launch will have a positive ripple effect on the development of the region by creating new jobs and supporting local businesses by using their goods and services. In order to implement the project, the company has built a new rotational camp for 600 people, and additionally hired more than 350 people, mostly local residents. RG Gold systematically helps nearby villages and allocates educational grants for local youth. Since 2015, when the company was acquired by Verny Capital Group, RG Gold has paid more than 45 billion tenge in taxes and allocated over 1.5 billion tenge for social and charitable projects.

Source: Informburo.kz

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