14 C
Supported byspot_img

Polymetal became first mining company in Russia to secure Green Loan

Member of Europium Groupspot_img
Supported byspot_img

Polymetal has agreed to the $125 million Green Loan with Societe Generale to finance investments in transition to a sustainable and low-emissions economy, it said Nov. 2 and this Russia’s second-largest gold producer has become the first company in the country’s metals and mining sector to secure a Green Loan finance facility, which it will allocate to projects designed to ensure lower emissions, more responsible waste management, and efficient use of resources.

“With the first green loan, we invite lenders to contribute to our ESG projects aligned with the global Sustainable Development Goals”, said Eugenia Onuschenko, Finance Director of Polymetal.

The loan, provided for six years, but extendable, is structured in line with the company’s recently adopted Green Financing Framework, and will be allocated to projects in the categories of clean transportation, renewable energy and energy efficiency, sustainable waste and water management.

Supported by

With this finance, Polymetal aims to achieve the following: to cut greenhouse gas emissions from operations by 5% by 2023 versus 2018; to grow renewable and low-carbon energy share in its power consumption to 7% by 2025, from no meaningful share in 2019; to take dry storage of tailings to 15% of the total by 2024, from 10% in 2019, as it significantly reduces land and water use, the possibility of dam failure and eliminates tailings run-off; to reduce fresh water use by 11% by 2023 versus 2018, when the company used 436 cu m to process 1,000 mt of ore; to recycle minimum 16% of waste (rock mainly) by 2023, up from 14% in 2019, for reuse in mines backfilling and own construction.

Polymetal will also invest $47 million in the next two years to decarbonize its transport by replacing diesel-fueled excavators and load haul dump machines with battery-powered electric vehicles.

This is the third sustainability-linked loan in Polymetal’s credit portfolio with the share of ESG instruments now reaching 18%, or a total of $280 million, of its net debt.

Linking loan terms to sustainability indicators is becoming a common practice in the Russian metals and mining sector. A number of other companies, including Metalloinvest, NLMK and Rusal, have already obtained loans whose interest rates, above the LIBOR compound, correlate with the companies’ ESG performances.

However, unlike those mining companies’ and Polymetal’s other two loans, this green facility is not linked to any specific ESG parameters of the company, but simply must be spent on green projects.

Source: spglobal.com



Supported byElevatePR Digital

Related News

Portugal, Covas do Barroso: Navigating the lithium conundrum

Amidst the serene landscapes of Covas do Barroso in northern Portugal, a small rural community grapples with the prospects of a new identity shaped...

EU witnesses substantial drop in 2023 imports of Russian iron and steel products amid ongoing sanctions

The main share of imports falls on semi-finished products – 69.4% of the total volume of deliveries In 2023, the European Union reduced imports of...

Anagold Mining’s Turkish gold mine hit by extensive landslide

Interior Minister Ali Yerlikaya announced that nine workers were trapped. On the extent of the landslide, he said, “It is estimated that the total...

If the world is to move away from fossil fuels, we will need to extract far more rare minerals

We all know that we’re in the middle of a climate crisis: temperatures are rising, the weather is becoming more extreme, and this is...
Supported by
Supported by
Supported by
error: Content is protected !!