Company with Russian Past to Mine Tin in Kazakhstan

Solidcore Resources will mine tin at the Syrymbet deposit in the North Kazakhstan region, Orda.kz reports.

Solidcore Resources announced that it had agreed with Lancaster Group to acquire a 55% stake in the company that controls the Syrymbet deposit. There has never been any commercial tin mining there. The deal is worth $82.5 million and will be finalized by the end of 2024.

Syrymbet is a polymetallic ore deposit with tin as the main component, which perfectly fits our strategy of deepening and diversification,  said Vitaly Nesis, CEO of Solidcore Resources.

Construction work at the deposit is planned to begin in 2025. It is located 80 kilometers from Kokshetau on a site with an area of more than ten square kilometers. The company plans to develop Syrymbet jointly with Berkut Mining, an enterprise controlled by Lancaster Group. 

Solidcore Resources assured that the project envisages investments in the region's social infrastructure and significant job creation in the region.

The Syrymbet deposit was discovered in 1985 but never developed. Tin is now highly valued as an essential component in producing batteries for electric cars, solar panel parts, electronic equipment, and alloys. As the director of the public fund Energy Monitor Nurlan Zhumagulov notes, tin production has never been done in Kazakhstan before.

Lancaster Group had previously planned to build a processing plant for $410 million with co-financing from BRK and even selected Italian Bonatti as the EPC contractor. But construction was never started, notes Nurlan Zhumagulov.

Solidcore Resources is the Polymetal Group's new name. It is Kazakhstan's second-largest gold producer. The company has two production assets in the country: the Bakyrchik deposit (Abay region) and the Varvara hub (Qostanay region). Solidcore Resources is registered in the AIFC.

Polymetal had ties to Russia. 

The group was among the companies that relocated to Kazakhstan from Russia. In March, it completed a deal to sell its Russian assets (shares of Polymetal JSC) to Mangazeya Plus Joint-Stock Company. The gold mining company abandoned its Russian business because Polymetal JSC fell under US sanctions in 2023.

Original Author: Nikita Drobny