EBRD acquires stake in Sarytogan Graphite Limited

Graphite is a critical raw material used for the production of electric vehicle batteries

• EBRD invests AUD 5 million (€3 million) in shares of Sarytogan Graphite Limited
• Funds to help develop one of the largest graphite deposits globally
• Project to support responsible mining and the supply of critical raw materials

The European Bank for Reconstruction and Development (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 AUD 5 million (€3 million), which represents a xx per cent shareholding in the company, will finance Sarytogan Graphite's development programme, including the preparation of a feasibility study and its working capital needs. By making this investment, the EBRD continues to support Kazakhstan's mining sector and its junior mining companies.

As per the EU critical raw materials classification (CRM), graphite is a CRM mineral, which has a wide range of applications and is used for the production of electric vehicle batteries, electric power industry and metallurgy to name a few. 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 project is consistent with the EBRD's new mining sector strategy, which recognises 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. The Bank's investment is a continuation of its policy work with the Kazakhstan authorities, which led to the adoption the new Subsoil Use Law.

To date, the EBRD has invested €10.2 billion in 324 projects in Kazakhstan, with most of those funds supporting private entrepreneurship.