EBRD acquiring 17.36% stake in firm exploring Sarytogan graphite deposit in Kazakhstan

ASTANA. Aug 9 (Interfax) - The European Bank for Reconstruction and Development is acquiring a stake in Sarytogan Graphite Limited, which is exploring Sarytogan graphite deposit in Kazakhstan.

"The EBRD is making its first direct equity investment in the graphite and critical raw materials sector in Central Asia by acquiring a stake in Sarytogan Graphite Limited, an Australian Securities Exchange-listed company involved in the exploration of the Sarytogan graphite deposit in the Karaganda region of central Kazakhstan. The EBRD's investment of A$5 million (3 million euros), which represents a 17.36% shareholding in the company, will finance Sarytogan Graphite's development program, including the preparation of a feasibility study and its working capital needs," the bank said in a statement.

The project is consistent with the EBRD's new mining sector strategy, which recognizes the important role of the mining industry in developing greener economies and supports the exploration, development, production and processing of metals and minerals required for the green and digital transition and new technologies. It also aligns with the EU-Kazakhstan strategic partnership on raw materials, batteries and renewable hydrogen.

Graphite is classified as a critical raw material by the EU, with applications in electric vehicle batteries, the electric power industry, and metallurgy, among others. "The Sarytogan graphite deposit is one of the largest known graphite deposits in the world, with the potential to become one of the main suppliers of natural graphite in the region and beyond," the EBRD said.

Sarytogan Graphite Limited, through its wholly-owned subsidiary Ushtogan LLP, fully owns the Sarytogan graphite deposit project, for which a pre-feasibility study is underway. Located in the Karaganda region of Central Kazakhstan, the concession for exploration covers 70 sq. km. The exploration license was issued to Ushtogan LLP in August 2018, confirmed by a contract in October 2018 and extended in June 2022. The deposit is located in an industrial mining area and is connected by a highway to the city of Karaganda (190 km) and the capital of Kazakhstan, Astana (390 km). Two large zones of graphitize deposits were identified - Central and Northern - as the result of exploration in the Sarytogan area.