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EBRD to issue €40 million loan for gold mine development in Turkey

Business Materials 19 December 2017 14:43 (UTC +04:00)
The European Bank for Reconstruction and Development (EBRD) is providing a €40 million loan to finance the construction, development and operation of two mines in northwestern Turkey – the Lapseki mine in Canakkale and the Ivrindi mine in Balıkesir
EBRD to issue €40 million loan  for gold mine development in Turkey

Baku, Azerbaijan, Dec. 19

By Nigar Guliyeva – Trend:

The European Bank for Reconstruction and Development (EBRD) is providing a €40 million loan to finance the construction, development and operation of two mines in northwestern Turkey – the Lapseki mine in Canakkale and the Ivrindi mine in Balıkesir.

The Bank reported that the two mines are being developed by Tümad, a subsidiary of the Turkish conglomerate Nurol Holding. The company is one of the first locally-owned private investors to start up a gold mine in Turkey.

Turkey is the largest gold producer in Europe and the Mediterranean and is among the top five largest gold importers globally.

The EBRD’s investment promotes highest international standards in mining and best practices in both occupational health and safety and in environmental and social management. The developer is commited to obtaining international certifications in the area of occupational safety, chemical management, social accountability and business conduct.

In addition, Tümad will join an EBRD-backed high-level group of policy-makers and major businesses whose aim is to enhance work-based learning opportunities, develop standards for vocational skills, expand the testing of qualifications across the country and promote career guidance for young people.

Eric Rasmussen, EBRD Director for Natural Resources, said the bank is pleased to partner with Tümad and help it apply best practices in the mining sector as it develops two gold mines in Turkey. "We welcome the company’s intention to undertake a greater role in developing skills among young people that will match the demands of the labour market at the time when youth unemployment is on the rise," he said.

The EBRD’s loan is part of a larger $ 200 million financing package with Akbank and Türkiye Cumhuriyeti Ziraat Bankası as parallel lenders. The EBRD is working to attract additional financing for the two mines.

To date, the Bank has invested over €9.5 billion in various sectors of Turkey’s economy, with almost all investments in the private sector. In 2017, the Bank signed more than 30 projects worth €1.2 billion and expects to exceed €1.5 billion in investments this year.

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