Solidcore board approves autoclave complex project in Kazakhstan with capex of $978 mln

MOSCOW. Dec 5 (Interfax) - The board of directors of Solidcore , formerly Polymetal, has approved launching construction of the Irtysh hydrometallurgical plant in Kazakhstan, the goldmining company said.

The plant is designed to process up to 300,000 tonnes of concentrate annually, with a metal recovery rate of 94%-96%. Concentrate from Solidcore's Kyzyl asset will account for 55% of the plant's design capacity, while the remaining available capacity will be accessible for processing third-party raw materials and concentrates from the company's future projects

"Pre-production capital expenditures are estimated at $978 million, including $112 million already spent during 2023-2024. The increase from the initial conceptual estimate of $800 million is due to higher costs for construction materials and equipment, expanded infrastructure needs, and additional staffing requirements," the company stated. The project will be financed through Solidcore's operating cash flow and bank loans.

The autoclave for the facility has already been manufactured and is currently en route to Kazakhstan, with on-site delivery expected by June 2025.

Solidcore plans to complete basic engineering in the first half of 2025 and begin full-scale construction in the second half of the year. Mechanical completion and the start of commissioning activities are slated for the second half of 2027, with the completion of commissioning and first production expected in the second half of 2028.

Following the divestiture of its Russian assets, Solidcore is now the second-largest gold producer in Kazakhstan. The company's largest shareholder is a consortium of Omani investors led by the state-owned Mercury Investments International Fund, which holds a 29.7% stake.