MINEX Forum

Website: Eurasia.com

  • Erdene Secures $80M to Build Mongolia’s Largest Gold Mine

    Erdene Secures $80M to Build Mongolia’s Largest Gold Mine

     We are very pleased to close the financing for the Bayan Khundii Gold Project with our strategic partner MMC, Mongolia’s leading publicly traded mining company. With the first gold scheduled in 2025, Bayan Khundii will be one of the highest grade, open pit gold mines globally and Mongolia’s largest primary gold producer when it reaches full production.

    Peter Akerley, President and CEO, Erdene Resource Development Corp.

    Akerley continued, “The strengthening of our relationship with MMC through this financing supports our goal of creating a major new mining district in southwestern Mongolia. With MMC’s experience in large-scale mining, expertise in construction, power supply, transportation and logistics, and national and international relationships.”

     The Bayan Khundii Gold Project will form a strong foundation for future growth in the Khundii Minerals District. Together we will grow the Mongolian mining sector, increase the industry’s contribution to the national economy, and create value for our shareholders.

    Peter Akerley, President and CEO, Erdene Resource Development Corp.

    Bayan Khundii Financing

    Erdene and MMC signed a financial agreement to build the Bayan Khundii Gold Project. The funding is set up as a shareholder loan from MMC to Erdene Mongol LLC which is a joint venture between Erdene and MMC and has the mining licenses for Bayan Khundii, Altan Nar, and the extremely promising Ulaan exploration license.

    The US$50 million shareholder loan will finance the building of the Bayan Khundii gold mine and processing complex.  Up to five tranches totaling at least US$5 million may be drawn from the loan. The loan will mature five years after the initial draw date, and interest will be charged at a rate of 13.8 %, which will be paid in arrears every three months.

    The first four interest payments are capitalizationable at EM’s discretion. When the loan matures, it will be fully repaid. Under the same conditions, MMC may choose to make available an additional US$30 million. Additionally, EM and commercial banks in Mongolia are negotiating a loan package for up to $30 million.

    A 50 % guarantee from Erdene and Erdene’s interests in the Project, including its shares of EM and NSR interest and preferential rights over the Khundii, Altan Nar, and Ulaan licenses, will finance the shareholder financing. Under the terms of the companies’ Strategic Alliance agreement, MMC will have first dibs on Erdene’s Zuun Mod project and priority voting rights for as long as the loan is outstanding.

    Erdene also has the option to become a lending shareholder on the same terms as MMC and buy 50 % of the loan.

    This funding comes after MMC invested US$40 million as part of the Strategic Alliance Agreement to acquire a 50 % equity stake in EM. MMC will contribute a maximum of US$120 million toward the Bayan Khundii Gold Project’s development. The Strategic Alliance’s highlights are as follows:

    • The main board of the Hong Kong Stock Exchange lists MMC, as the largest mining firm in Mongolia that is traded worldwide.
    • MMC has made a $40 million investment in EM, Erdene’s Mongolian affiliate that had the Ulaan exploration license in addition to the Khundii and Altan Nar mining licenses.
    • In addition to the first 400,000 ounces of gold recovered, Erdene is still the owner of a 50 % equity position in EM and a 5.0 % Net Smelter Return royalty on production from the Khundii, Altan Nar, and Ulaan licenses. Erdene also retains ownership of any properties purchased within a 700 km2 area of interest.
    • The massive Zuun Mod Molybdenum-Copper deposit and Khuvyn Khar Copper project, which are around 30 km east of Bayan Khundii and next to a proposed railroad development, are both owned 100% by Erdene.
  • Kazakhstan, Azerbaijan agree to co-reduce bottlenecks in Middle Corridor

    Kazakhstan, Azerbaijan agree to co-reduce bottlenecks in Middle Corridor

    Kazakhstan and Azerbaijan have agreed to actualize the synchronous elimination of bottlenecks on the Trans-Caspian International Transport Route (TITR, or Middle Corridor), the deputy chairman of the Committee of Railway and Water Transport of Kazakhstan, Kasym Tlepov, said during the meeting with the Azerbaijani delegation.

    Thus, the parties considered issues within the framework of the implementation of the signed Road Map on synchronous elimination of “bottlenecks” and development of the Middle Corridor on the territories of Kazakhstan, Azerbaijan, and Türkiye for 2022–2027.

    Tlepov informed about the ongoing work to expand the capacity of the corridor. According to him, in 2023, the volume of transhipment through the seaports of Aktau and Kuryk increased by 65 percent and amounted to 2.76 million tons of cargo.

    “Within the framework of the implementation of the roadmap on synchronous elimination of bottlenecks and the development of TITR, the parties are actively working to expand the capacity of the corridor. An agreement has been reached to update this roadmap. In turn, Kazakhstan is making efforts to develop transport and transit potential in the region and modernize transport corridors,” Tlepov emphasized.

    He also shared information on railway projects, raising the status of the TITR association, digitalizing TITR, creating a single logistics operator, and building port capacity.

    To note, the Middle Corridor links the container rail freight transportation networks of China and the European Union through Central Asia, the Caucasus, Türkiye, and Eastern Europe.

    A multilateral multimodal transportation infrastructure links ferry terminals on the Caspian and Black Seas with the railway systems of China, Kazakhstan, Azerbaijan, Georgia, Türkiye, Ukraine, and Poland.

    The middle corridor facilitates increased cargo traffic from China to Türkiye, as well as to European countries and in the opposite direction.

    A route train along this corridor delivers cargo from China to Europe in an average of 20-25 days, and this is one of the main advantages of this transport corridor.

  • Uzbekistan buys 9 tons of gold in December 2023

    Uzbekistan buys 9 tons of gold in December 2023

    The Central Bank of Uzbekistan has emerged as the world’s second-largest gold buyer, the World Gold Council has reported. In December 2023 alone, the region’s second-largest economy purchased 9 tons of the precious metal. This is a significant increase from the 6.5 tons it had acquired in 3Q23.

    Global Central Bank Gold Holdings

    Global central bank gold holdings saw an increase of 28 tons in December. Turkey took the lead as the largest buyer, augmenting its reserves by 28 tons in a single month. Following Uzbekistan, China also made substantial purchases, securing a place in the top three with a purchase of 9 tons.

    Kazakhstan and Kyrgyzstan’s Gold Sales

    Contrary to the buying trend, Kazakhstan emerged as the main seller of gold in December. The country sold five times more precious metal compared to the previous month – 10 tons in December, a significant increase from the 2 tons sold in November. Additionally, neighbouring Kyrgyzstan also sold 2 tons of gold in December.

    Implications and Future Trends

    The recent surge in gold purchases by central banks, particularly in Uzbekistan, Turkey, and China, underscores the growing importance of gold as a strategic reserve. This trend is expected to continue, given the ongoing economic uncertainties and the role of gold as a safe-haven asset. However, the selling trend observed in Kazakhstan and Kyrgyzstan indicates a different strategic approach towards gold reserves in these countries.

    Uzbekistan has one of the largest gold mines in the world, Muruntau. Located in the mountains of Murintau in the south-west of the Kyzylkum desert, on the territory of the Tamdyn district of the Navoi region, the mine has estimated reserves of 150mn ounces of gold in reserves and resources. President Mirziyoyev of Uzbekistan announced on February 1  that gold production in the country grew by 23% over the last 7 years.

  • Russia’s Rosatom joins setting educational hub for industrial digitization in Tajikistan

    Russia’s Rosatom joins setting educational hub for industrial digitization in Tajikistan

    Discussions were held in Tajikistan regarding the establishment of an educational center for industrial digitization and information technologies in the country, Trend reports.

    The issue was deliberated among the Committee on Architecture and Construction under the Government of Tajikistan, Russia’s “Rosatom” state corporation, and the Moscow State University of Civil Engineering.

    During the meeting, the parties endorsed the establishment of an educational center in Tajikistan focused on industrial digitization and information technologies.

    Additionally, they discussed the training of specialists at Moscow State University of Civil Engineering in Russia. The parties expressed their readiness to collaborate in the field of education and the professional development of specialists.

    The sides also reviewed a roadmap to strengthen cooperation on issues outlined in the Memorandum signed on October 20, 2023, between the Committee on Architecture and Construction under the Government of Tajikistan, the Ministry of Construction and Housing and Communal Services, and “Rosatom”.

  • Kazakhstan produces 19 types of critical raw materials approved by the European Union

    Kazakhstan produces 19 types of critical raw materials approved by the European Union

    Kazakhstan, possessing rich resources, positions itself as one of the key players in this field.

    19 types of strategic raw materials:

    • The country produces and processes 19 types of essential raw materials, as approved by the European Union.
    • Exports reach the USA, China, South Korea, Great Britain, Russia, and EU countries.
    • Presently, Kazakhstani manufacturers supply the European market with metal and chemical products such as beryllium, tantalum, titanium, ammonium metavanadate and phosphorus.

    Leadership in copper production and potential in electric vehicles:

    • Kazakhstan ranks amongst the top ten countries in the world for copper production.
    • There’s a promising opportunity to establish a cluster focused on battery material production, such as nickel, cobalt, manganese, and lithium.
    • These precursors will become a primary source of raw materials for the expanding production of electric vehicles.

    Overcoming challenges:

    • A core issue within the rare metals mining industry is a reliance on imported raw materials.
    • Additionally, worn-out technologies and equipment in businesses hinder further development of the production of essential raw materials.

    Comprehensive development plan:

    • To tackle these challenges, a comprehensive plan for developing the rare earth metals sector (2024-2028) has been devised.
    • The plan was approved by a Government Resolution on the 28th of December 2023.
    • The Ministry of Industry is actively working to implement it.

    The implementation of this plan will enable Kazakhstan to become one of the leaders in the production of raw materials for electric vehicles, ensuring sustainable economic development and strengthening its position in the global market.

    Additional information:

    • Press Service of the Ministry of Industry and Construction of the Republic of Kazakhstan
    • Government Resolution of the Republic of Kazakhstan dated 28 December 2023 No. 1023
  • Kumtor Gold Company provides 2.6 million soms for drip irrigation project in Jety-Oguz district

    Kumtor Gold Company provides 2.6 million soms for drip irrigation project in Jety-Oguz district

    Kumtor Gold Company has provided financial assistance to Kyzyl-Suu rural municipality, Jety-Oguz district of Issyk-Kul region.

    Some 2.6 million som was allocated for installation of drip irrigation system on 30 ha land of the Kyzyl-Suu Agroindustrial Complex.

    The project will create additional work places and will facilitate development of local production of goods.

  • Fremont Gold Announces Soil Geochemistry Results from Urasar Mineral District, Armenia

    Fremont Gold Announces Soil Geochemistry Results from Urasar Mineral District, Armenia

    Urasar geochemical soil sample results

    The Company collected a total of 744 C-horizon soil samples across the Urasar Mineral District in November and December 2023.

    Urasar was last worked by Soviet government teams in the 1950s and 1960s, resulting in the identification of three mineralized zones and four geochemically anomalous zones along a 14 km strike length.

    Gold fire assay and multi-element geochemical results from Fremont’s recent soil sampling survey display continuous gold-copper/base metal anomalies hosted in an east-west structure 1.2km wide over a 15 km strike length, as shown in the figures presented below. Gold values ranged up to 449 ppb with a mean of 142 ppb.

    Gold in C-horizon soil samples at Urasar

    Copper soil geochemistry at Urasar

    The copper anomalies generally mimic the gold anomalies but display a tighter distribution comprising three distinct populations, consistent with the earlier Soviet work. A continuous, robust copper anomaly greater than 5 km in length is evident in the western portion of the project area, congruent with the largest and strongest gold anomaly. At the far eastern end of the license, the gold geochemistry is comparatively weak while the copper anomaly is quite coherent and robust. Copper values ranged up to 497ppm with a mean of 233 ppm.

    Arsenic Soil Geochemistry at Urasar

    Anomalous arsenic soil geochemistry generally reflects the same distribution as the gold geochemistry but is well developed on the eastern end of the 5-km long Cu-Au anomaly in the western part of the project.

    Initial spatial analysis of the anomalies suggests a continuous mineralized structure over 1 km wide, offset by post-mineral north or northeast-trending faults in step-wise fashion. The disposition of the anomalies suggests a southward displacement of about 1 km between the first and second anomalies, and approximately 2 kms displacement between the second and third anomalies. This distribution is most easily observed in the copper geochemistry image above.

    Fremont’s President and CEO, Dennis Moore states, “These soil geochemical results support management’s belief that Urasar is a well-endowed mineral district with at least three en echelon mineralized zones. These east-west striking zones are six, four and three kilometers in length with minimum widths of approximately 1.2 kilometers. Detailed geological mapping and trenching are planned for the spring, with diamond drilling following in the summer. We are very excited about these results and believe we are on the cusp of a significant new discovery.”

    About Fremont Gold

    Fremont’s mine-finding management team has assembled a portfolio of potential world-class copper-gold mineral opportunities within the central Tethyan belt of Armenia, and controls two advanced gold exploration projects in Nevada.

  • Erdene Secures $80M to Build Mongolia’s Largest Gold Mine – AZoMining

    Erdene Secures $80M to Build Mongolia’s Largest Gold Mine – AZoMining

    Image Credit: Jason Kolenda/Shutterstock.com

     

    Erdene Resource Development Corp. and Mongolian Mining Corporation had executed debt finance agreements worth up to US$80 million to finance the development of the high-grade, open-pit Bayan Khundii Gold Project in southwest Mongolia.

    We are very pleased to close the financing for the Bayan Khundii Gold Project with our strategic partner MMC, Mongolia’s leading publicly traded mining company. With the first gold scheduled in 2025, Bayan Khundii will be one of the highest grade, open pit gold mines globally and Mongolia’s largest primary gold producer when it reaches full production.

    Peter Akerley, President and CEO, Erdene Resource Development Corp.

    Akerley continued, “The strengthening of our relationship with MMC through this financing supports our goal of creating a major new mining district in southwestern Mongolia. With MMC’s experience in large-scale mining, expertise in construction, power supply, transportation and logistics, and national and international relationships.”

     The Bayan Khundii Gold Project will form a strong foundation for future growth in the Khundii Minerals District. Together we will grow the Mongolian mining sector, increase the industry’s contribution to the national economy, and create value for our shareholders.

    Peter Akerley, President and CEO, Erdene Resource Development Corp.

    Bayan Khundii Financing

    Erdene and MMC signed a financial agreement to build the Bayan Khundii Gold Project. The funding is set up as a shareholder loan from MMC to Erdene Mongol LLC which is a joint venture between Erdene and MMC and has the mining licenses for Bayan Khundii, Altan Nar, and the extremely promising Ulaan exploration license.

    The US$50 million shareholder loan will finance the building of the Bayan Khundii gold mine and processing complex.  Up to five tranches totaling at least US$5 million may be drawn from the loan. The loan will mature five years after the initial draw date, and interest will be charged at a rate of 13.8 %, which will be paid in arrears every three months.

    The first four interest payments are capitalizationable at EM’s discretion. When the loan matures, it will be fully repaid. Under the same conditions, MMC may choose to make available an additional US$30 million. Additionally, EM and commercial banks in Mongolia are negotiating a loan package for up to $30 million.

    A 50 % guarantee from Erdene and Erdene’s interests in the Project, including its shares of EM and NSR interest and preferential rights over the Khundii, Altan Nar, and Ulaan licenses, will finance the shareholder financing. Under the terms of the companies’ Strategic Alliance agreement, MMC will have first dibs on Erdene’s Zuun Mod project and priority voting rights for as long as the loan is outstanding.

    Erdene also has the option to become a lending shareholder on the same terms as MMC and buy 50 % of the loan.

    This funding comes after MMC invested US$40 million as part of the Strategic Alliance Agreement to acquire a 50 % equity stake in EM. MMC will contribute a maximum of US$120 million toward the Bayan Khundii Gold Project’s development. The Strategic Alliance’s highlights are as follows:

    • The main board of the Hong Kong Stock Exchange lists MMC, as the largest mining firm in Mongolia that is traded worldwide.
    • MMC has made a $40 million investment in EM, Erdene’s Mongolian affiliate that had the Ulaan exploration license in addition to the Khundii and Altan Nar mining licenses.
    • In addition to the first 400,000 ounces of gold recovered, Erdene is still the owner of a 50 % equity position in EM and a 5.0 % Net Smelter Return royalty on production from the Khundii, Altan Nar, and Ulaan licenses. Erdene also retains ownership of any properties purchased within a 700 km2 area of interest.
    • The massive Zuun Mod Molybdenum-Copper deposit and Khuvyn Khar Copper project, which are around 30 km east of Bayan Khundii and next to a proposed railroad development, are both owned 100% by Erdene.
  • Central Asia Metals Reaffirms Strong Production, Seeks Growth Opportunitie

    Central Asia Metals Reaffirms Strong Production, Seeks Growth Opportunitie

    Nigel Robinson discusses the positive production results for 2023, with copper, zinc, and lead all meeting or exceeding guidance. He emphasizes the company’s focus on business development and growth opportunities. Kazakhstan is highlighted as a potential area for future projects, with the company teaming up with experienced geologists to explore for new opportunities. R

    Central Asia Metals (CAML), a diversified base metals producer, has demonstrated resilience and strategic growth amidst challenging economic conditions in the first half of 2024. Despite facing a 17% decline in metal prices, cost inflation of 10-15%, and tax increases in Kazakhstan for the first time in a decade, CAML has maintained a strong performance. The company reported the production of 6,700 tons of copper, 9,700 tons of zinc, and 13,700 tons of lead in the first six months, aligning with its annual production guidance. This achievement was underscored by a commendable safety record, with a Lost Time Injury Frequency Rate (LTIFR) of 0.8, surpassing the target of 1.3.

    Financially, CAML showcased robust results with revenue just under $100 million and an EBITDA of approximately $49 million, translating to a 49% EBITDA margin. The company also generated $24.1 million in free cash flow, enabling a dividend payout of nine pence per share. This financial health is further bolstered by a debt-free balance sheet and cash reserves of $50.6 million.

    Strategic projects such as the Sasa transition to paste fill mining and the construction of a solar farm are on track, promising operational and environmental benefits. The transition to paste fill mining at the Sasa mine is expected to enhance metal recovery, reduce dilution, and enable access to complex ore bodies, while also addressing waste management challenges.

    On the business development front, CAML has been active, evaluating 22 opportunities, signing five NDAs, and conducting three site visits. Although two focused opportunities did not materialize, the company remains committed to growth, leveraging its strong balance sheet to explore early-stage opportunities and transformative transactions.

    CAML’s partnership with Terra Exploration in Kazakhstan exemplifies its strategy to identify and develop early-stage mining opportunities. This collaboration aims to leverage Terra Exploration’s expertise and CAML’s resources to secure new licenses and potentially discover viable mining projects.

    The company’s commitment to Environmental, Social, and Governance (ESG) principles is evident in its reporting and operational practices. CAML has published its fourth sustainability report, supports the Task Force on Climate-related Financial Disclosures (TCFD), and plans to report its Scope 3 emissions. Internally, CAML has set ambitious targets across key sustainability pillars, including a 50% reduction in greenhouse gas emissions by 2030 and increased local community investment.

  • Ukraine: Krasnolimanske buys license for coal deposit in Donetsk region

    Ukraine: Krasnolimanske buys license for coal deposit in Donetsk region

    Krasnolimanske LLC has become the winner of the auction to sell a special license to use subsoil – the mine site No. 1 in Mirnograd, Donetsk region.  The auction was held on February 8 on Prozorro.  Three companies participated in the trade of the lot with the starting price of 2.22 million UAH. The bid of Krasnolimanske in the amount of 4 million UAH won.  The license is valid for 20 years.