Operating for 15 years in Kazakhstan, with Central Asia now our strategic hub, we acknowledge our role in the sustainable development of the region. Collaborating with our team, partners, suppliers and local communities, we vigorously strive to combat climate change and foster long-term prosperity for us all.
The products derived from mining are essential to the development and well-being of humanity. However, recognising that mining activities can result in adverse consequences for the climate and simultaneously may suffer from extreme climate events, the Group regards the mitigation of such consequences and adaptation to avoid catastrophic outcomes as essential in the fight against climate change.
Solidcore continues to adhere to its commitments combat climate change and targets of reducing its direct and energy-related emissions, and gradually adapts its Climate Action Plan to the new circumstances and changes in Group structure.
In its Climate Strategy, Solidcore gives an unconditional priority to real decarbonisation projects and states that offsetting is reserved only for hard-to-abate or residual emissions. We disclose data on climate performance and progress towards climate and environmental goals in our Integrated Reports, which are fully compliant with TCFD recommendations.
We are also adapting a plan for a phased transition to disclosures in accordance with IFRS S1 and S2.
In Kazakhstan, Solidcore operates in three different regions, Kostanay, Abay and Pavlodar, where our new development project Ertis POX is located. Each of these areas has its own weather-specific microclimate. To take account of the climate features and the intensity of climate change in every region of our operations, we have selected sets of meteorological data for each asset, using information from the national meteorological service Kazhydromet.
Our GHG emissions, whether Scopes 1, 2 or 3, are not currently subject to national carbon taxes or quotas. But, given that Kazakhstan aims to become carbon neutral by 2060 and adopted its decarbonisation strategy in 2023, the emerging mechanisms for national carbon adjustment are key significant transitional risks. The first taxes and mandatory quotas for the most carbon-intensive industries may be introduced in Kazakhstan as early as
Our main tools for mitigating climate risk are transparency in our climate disclosure, assessing and managing physical risks, as well as adherence to carbon targets and reducing our impact on the environment. By reducing our emissions and introducing a Climate Action Plan, we mitigate our impact and enhance our resilience to these risks.
Looking ahead, climate change remains a source of risk but also opportunity. The energy transition and development of renewable energy sources bring decarbonisation potential, as well as opening up prospects for non-ferrous metals markets (namely in technology sectors). We are, therefore, continually expanding the resource base of our operating projects, along with considering new projects for the development of copper deposits. Our copper reserves and resources in Kazakhstan are concentrated in Varvara hub and the Baksy property (in which Solidcore increased its interest to 75% in 2023). In the long term, we expect a significant increase in demand for this metal to underpin capacities of renewable energy sources and energy storage systems, and are reviewing options for expanding our copper production.
For more information on our climate risk mitigation and adaptation strategy, please see our Integrated Reports.
The basic foundations of Solidcore’s Climate Action Plan remain unchanged:
- Transition to low-carbon technologies and grid connection
- Develop our own renewables in the regions where we are present (where possible) and ensure efficient generation of electricity
- Switch to electricity supplies with the lowest available carbon footprint
- Modernisation of our mobile fleet, including electrification and switching to gas-diesel equipment
- Continuous work to improve the energy efficiency of all our processes.
Given the changes in corporate structure following the disposal of Russian assets in Match 2024, we adjusted the sequence in which we implement our green projects and are now focused on those in Kazakhstan with the highest efficiency and availability of technologies and equipment.
In 2024, we continue implementing our medium-term mitigation plan and developing a detailed, long-term corporate Climate Strategy for the period after 2030.
To align capital with the company’s strategy and strong ESG performance, and source our Climate Action Plan, the Group has been actively using the sustainability-linked financial instruments such as green loans and ESG-linked loans to fund its green projects, including renewable energy projects, mobile fleet modernization, waste and water management.
In 2020, Solidcore adopted its first Green Financing Framework — a standard compiling principles of green financing that aims at facilitating transparency, disclosure procedures, integrity and quality in Solidcore’s green loans. The framework establishes the categories and criteria for projects eligible for green financing, the approach to project selection and evaluation, the principles of proceeds allocation and reporting standards.
The Green Financing Framework is based on and in line with the LMA’s Green Loan Principles 2018. Solidcore has obtained the second opinion on the Framework from Centre for International Climate and Environmental Research (“CICERO”).
Being a pioneer of green sustainable financing and one of the first in the global mining industry to secure an ESG-linked loan in 2018, Solidcore has several successful cases of raising targeted and general purpose loans with climate and sustainability covenants from major international banks and development institutions.
2017 — Our flagship project Kyzyl receives funds from EBRD ($200m)
- Solidcore adopted EBRD’s best practices on environmental and social aspects for the development and subsequent operation of Kyzyl and implemented joint inclusion project to improve opportunities for young people and women in the industry
2018 — First Sustainability-linked loan signed with ING ($80m)
- Margin linked to the Group’s ESG performance estimated by Sustainalytics
2019 — First KPI-linked loan signed with SG ($75m)
- Margin linked to 5 environmental and social KPIs, including climate management, occupational H&S maintenance, support of local communities, waste and water management (annual reporting on progress)
2020 — First Green Loan in line with the LMA Green Loan Principles ($125m)
2021 — Climate transition loans signed with Raiffeisenbank ($ 200m) and UniCredit ($ 200m)
- Pricing for the loans is linked to the Company’s progress on its GHG intensity reduction targets as compared to 2019 baseline year (Scope 1 and 2)
Solidcore currently has one loan that includes sustainability requirements.
Our flagship project Kyzyl received funds from European Bank for Reconstruction and Development (EBRD) ($200m). Solidcore adopted EBRD’s best practices on environmental and social aspects for the development and subsequent operation of Kyzyl and implemented joint inclusion project to improve opportunities for young people and women in the industry.
EBRD and Wardell-Armstrong (WAI) completed a detailed review of the social and environmental issues linked to Kyzyl gold project, and based on this review, a formal Environmental and Social Impact Assessment (ESIA) has been produced for meeting environmental and social requirements of the EBRD, which is considering the opportunity to finance the project.
The ESIA is a comprehensive analysis of any risks and opportunities linked to all key areas of the Kyzyl project, including its environmental, socio-economic and cultural effects.
Solidcore has also agreed with the EBRD on the Environmental and Social Action Plan (ESAP), which includes a series of actions that Solidcore will implement in order to avoid, reduce, control, or otherwise mitigate potential environmental, occupational health and safety and social impacts during Kyzyl construction and operation.
Solidcore provides the EBRD with detailed annual reports on the progress of the Environmental and Social Action Plan implementation at Kyzyl and the project’s compliance with EBRD requirements. For more information, please see the project portfolio on the EBRD website.