Solidcore Resources, one of the largest gold producers in Kazakhstan, pays special attention to sustainable development issues. In an interview for our publication, the company's Director of Sustainable Development, Dilyara Yedenbayeva, talks about the company's key projects, decarbonization goals and support for local communities, as well as the challenges that the corporate sector faces on the way to “greening”.

- Please, can you tell us about the activities of Solidcore Resources in Kazakhstan.

- Solidcore Resources is the second largest gold producer in Kazakhstan. The company manages two operating assets: Kyzyl in the Abai region and the Varvarinskiy hub, which unites the Komarovskoye and Varvarinskoye deposits in the Kostanay region. We also have a key development project — Ertis hydrometallurgical complex (EHMC) in Pavlodar.

The last two years have been a transformational period for us. In 2023, the company transferred its registration from Jersey Island to Kazakhstan, passing into the jurisdiction of the AIFC, and ceased listing on the London and Moscow Stock exchanges. Today, 100% of our business and production are concentrated in Kazakhstan.

I would especially like to mention our strategic Ertis HMC project, which will become the first full-scale and high-tech full-cycle pressure oxidation complex for processing refractory ores from the Kyzyl deposit. This technology is considered one of the most stable and safe in hydrometallurgy.

- You are the head of Solidcore Resources' sustainable development department Why does the company pay special attention to this area?

- We actively adhere to the ESG principle, and one of our key priorities is leadership in sustainable development. We pay special attention to this area for several reasons.

Firstly, it is reducing risks and strengthening the company's reputation — responsible approach and investments in environmentally friendly technologies help to minimize reputational risks.

Secondly, ESG factors are important for attracting investments, especially from institutional investors who pay significant attention to them. Thirdly, compliance with regulatory requirements: as the requirements for disclosure of data on sustainable development and carbon footprint become more stringent, ou r company strives to meet these standards.

There are many of these reasons, I have identified the main ones.

- What goals and objectives does Solidcore Resources set for itself as part of the development of sustainable development?

In general, sustainable development is already a key goal for our company, and within its framework we focus on four main tasks:

The First is to reduce greenhouse gas emissions. We strive to introduce technologies that reduce the carbon footprint, modernize equipment and production processes, and improve the energy efficiency of our enterprises.

The Second is to reduce the consumption of fresh water, which will allow us to take more care of this important resource.

The Third is to ensure the health and safety of employees. We create favorable conditions for their development and self-realization, respect their rights and take care of their well-being.

The Fourth is the support of local communities and social development. We actively invest in infrastructure and social projects in the regions where we are present, create jobs and contribute to the local economy.

After completing the restructuring of the company, we plan to update the Sustainable Development Goals by April 2025. At the same time, our main priority remains unchanged: to

minimize the impact on the environment, while maintaining a balance between the economic and operational efficiency of our enterprises.

- One of the direct tools for decarbonizing energy consumption is the introduction of renewable energy sources. Please can you tell us about the plans for the development of this area.

-Our decarbonization plans include the construction of solar power plants with a capacity of 23 MW in Kostanay region and 17 MW in Abai region, as well as 40 MW gas engine power plant that will compensate for the uneven generation of solar energy. These projects are important to us because they will improve energy security and fulfil I our commitments to reduce ourcarbon footprint.

The first stage of the project is being implemented actively — the energy cluster at Varvarinskiy, which will combine solar and gas engine power stations, as well as all the necessary gas distribution infrastructure. Next year, we plan to launch the second phase of the project — the construction of a solar power plant in Kyzyl. The full launch of all power plants is planned for 2027, and the total investment will amount to about 75 million US dollars. These capacities will almost completely replace the consumption of electricity generated by coal-fired power plants and reduce greenhouse gas emissions of our enterprises by 27% compared to 2023.

- The President and the Government of Kazakhstan pay special attention to environmental issues. Thus, in the Message of 2020. The President instructed to plant 2 million trees in forests and 15 million trees in populated areas. What are your company's plans in this direction?

- The President and the government of Kazakhstan really pay great attention to the environment, and this inspires us to take action, and we, for our part, also actively support this course.

This year we launched a pilot project to create a new forest area in Kostanay region: we are planting a forest on the territory of 500 hectares, which we will eventually expand to 1.5 thousand hectares. This forest will not only help improve the climate and maintain biodiversity, but will also become a new home for animals and a recreation area for local residents. In addition, the project has already been included in the national register of carbon projects, which will allow us to produce carbon units to compensate for our own greenhouse gas emissions.

We are also planning similar projects in Pavlodar region and Abai region. Our project is innovative for the carbon market in Kazakhstan, and although it is not moving so fast due to a number of regulatory and bureaucratic difficulties, we hope to work with representatives of the MENR to develop a more effective approach to such initiatives. We believe that in the future such projects will receive even more significant support."

-  What problems do companies in the industrial sector face in implementing their sustainable development policies?

- Sustainable development for the industrial sector is like a path through the wilds of the forest. The main difficulties along the way resemble large rocks that have to be bypassed.

Firstly, it is the high cost of technology. The introduction of "green" solutions requires significant investments: the development and launch of environ mentally friendly technologies sometimes cost a lot of money, and not every company is ready for such costs.

Another challenge is the slow pace of innovation. The industrial sector is inherently conservative, and here every new approach is met with caution, if not with apprehension. In this realm of reliable traditions, the transition to sustainable technologies sometimes seems like something out of the realm of fiction.

Next comes the resistance within the company. Sometimes the biggest obstacles don't come from the outside, but from the inside. Managers and employees may fear that new methods will affect profits or disrupt fa mi liar processes, and sometimes this inertia prevents them from moving forward.

In addition, companies have difficulties with supply chains. It is not enough to introduce "green" technologies only at home; it is important that each partner in the chain follows the same standards, and this is difficult to control.

Finally, there is a shortage of specialists. To move towards sustainable development, we need professionals who understand ecology, technology and the principles of sustainable development. And such specialists are literally worth their weight in gold today.

The path is difficult, but companies understand that it needs to be passed. Success awaits those who are ready to go forward and solve each of these tasks."

- What support measures are needed by the corporate sector for further greening of industrial and business processes?

- Rather, a set of measures is needed to encourage companies to implement environmental initiatives.

In order for a business to truly "green up", a whole arsenal of support is needed, helping not just to take a step forward, but to move to a new sustainable stage. We can say that this is an integrated approach, where each element is a support on the way to the futu re, where both profit and ecology go hand in hand.

The first element is regulation. For stable and consistent movement, stricter and more transparent standards of sustainable development are needed, in line with international standards. Mandatory reporting and transparency of data on decarbonization and sustainability at the national level will be the basis for increasing trust and responsibility.

Further, without financial incentives and tax incentives, the path to a sustainable future may seem too difficult and costly.

Subsidies, grants and soft loans for "green" projects are not just help, but motivation for business. The launch of full-fledged carbon market will provide an opportunity to offset emissions and invest in environmental technologies.

The third measure is development of the market for "green" bonds and investments. The environmental projects supported by financial instruments will open up a new source of capital for companies. Moreover, the standards for such bonds and the confidence in them from banks and investors will make green investments a natural part of the economic landscape.

Another important support is innovation and research. Without a scientific base and innovative solutions, the implementation of environmental practices may stall. R&D support, partnership with universities and research centers, and support for startups are important here. Such steps will create innovations, test them and make them part of our common sustainable future.

And, of course, public recognition is important. Ratings, certificates, and awards are a sign of respect for those who sincerely care about the environment. Recognition inspires and motivates, and also shows other companies that moving towards a "green" future is not only necessary, but also prestigious.

These measures together will become not just support, but the basis for transition to a new, sustainable and responsible stage of business development.