More gold money lined up for controversial EBRD client
Bankwatch Mail | 14 December 2012
The EBRD’s board of directors is set to decide on December 12 whether or not to extend further significant financing to Canadian gold mining firm Dundee Precious Metals (DPM). This time the EBRD may invest up to USD 45 million in a ‘five-year revolving corporate debt facility’ to DPM valued at USD 150 million.
This article is from Issue 54 of our quarterly newsletter Bankwatch Mail
This revolving fund is described as ‘regional’ on the EBRD’s website, and looks likely therefore to support the on-going development and expansion of DPM’s gold mining operations in Armenia, Bulgaria and Namibia, for which EBRD has already provided roughly USD 80m in loans.
While the nature of this type of fund raises concerns about transparency and where the EBRD’s financing will end up, on paper the EBRD describes the financing as being likely to set “higher standards in terms of transparency and environmental, social and health and safety (ESH&S) practices.” Notably, the EBRD’s website also informs that: “It has been agreed with the Company that disbursement of funds for use at the Deno facility (in Armenia) shall not occur until such time as due diligence there has been completed.”
The Armenian environmental website Ecolur reported in November that Deno Gold has twice this year dumped mining waste in the River Kapan and incurred fines as a result of accidents at the company’s Kapan Ore Processing Combine.