The European Bank for Reconstruction and Development (EBRD) has made its first direct equity investment in the graphite and critical raw materials sector in Central Asia by acquiring a stake in Sarytogan Graphite Limited. This Australian Securities Exchange-listed company is engaged in the exploration of the Sarytogan graphite depositlocated in the Karaganda region of central Kazakhstan.
The EBRD’s investment of AUD 5 million (€3 million), representing a 17.36 per cent shareholding in Sarytogan Graphite, will fund the company’s development programme. This includes the preparation of a feasibility study and meeting its working capital needs. Through this investment, the EBRD continues its support for Kazakhstan’s mining sector and its junior mining companies.
Graphite, classified as a critical raw material (CRM) by the EU, has a wide range of applications, including in the production of electric vehicle batteries, the electric power industry, and metallurgy. The Sarytogan graphite depositis one of the largest known graphite deposits globally, with the potential to become a major supplier of natural graphitein the region and beyond.
This project aligns with the EBRD’s new mining sector strategy, which emphasizes the importance of the mining industry in fostering greener economies. The strategy supports the exploration, development, production, and processing of metals and minerals essential for the green and digital transition and new technologies.
Additionally, the project is consistent with the EU-Kazakhstan strategic partnership on raw materials, batteries, and renewable hydrogen. The EBRD’s investment is a continuation of its policy work with Kazakhstan authorities, which has already led to the adoption of the new Subsoil Use Law.
To date, the EBRD has invested €10.2 billion in 324 projects in Kazakhstan, primarily supporting private entrepreneurship.
