Financing mining projects. Environmental and H&S aspects in EBRD decision making MINEX Central Asia – April 2014

2 What is the EBRD? Key facts about our Bank  Supranational Institution. Founded in 1991 and owned by 63 countries, including Australia.  1,600 professionals, 37 offices, 35 countries of operations. Half of banking team is based in the Bank's region.  AAA/Aaa/AAA rating, stable outlook. Capital base of EUR 30 billion. Strong shareholders’ support. Conservative risk policy.  The EBRD promotes transition to market economies. The EBRD invests mainly in the private sector but also in the public sector supporting privatisation and restructuring of former state-owned companies. The EBRD promotes policy dialogue with regards to investment climate business environment and policy matters. The EBRD encourages environmentally sound and sustainable development.  EBRD is a catalyst of capital and FDI. EBRD co-invests equity and provides financing alongside commercial banks and other IFIs. Each 1 EUR invested by EBRD mobilises ca. 2 EUR of additional debt/equity investments.

3 EBRD’s economic footprint  €86bn invested since 1991  3,965 projects to date  €38bn current portfolio  1,831 active projects  78% debt, 22% equity  72% of portfolio in the private sector  €8.6bn invested in 2013  392 projects signed in 2013 Key figures

4 EBRD’s financial solutions What can EBRD offer?  Flexible loan structure. Senior/subordinated, mezzanine, project finance, convertible debt, reserve-based lending, bond issues.  Up to 1/3 project costs.  Long tenors. Up to 20 years, tailored to needs.  A/B syndication structures. Preferred creditor status. Mobilization of commercial credit  Co-financing / parallel lending. Equity  Common and preferred stock. Typically, up to 20% minority stake.  Support to strategic investors.  Long term partnership. Long exit horizons (5-10 years)  IPO participation as anchor investor. Increased credibility and comfort to investors.  Board representation. Positioning as neutral party (“honest broker”), provides commercial/technical advice, promote Corporate Governance practices. Debt

5 Natural Resources at the EBRD Dedicated sector approach and multidisciplinary team Key sectors O&G extraction, transportation, refining Mining & Services Our Team  10 professional bankers focused on Russia and Central Asia Permanent presence in: Almaty, Astana, London, Moscow  2 in-house mining and petroleum engineers. Technical appraisal, due diligence and monitoring. Access to additional expertise (consultants).

6 EBRD Environmental Policy In order to “support environmentally sound and sustainable development” the Bank has developed a set of detailed environmental policies to which all bank-financed projects must adhere Compliance with applicable national environmental laws and EU standards EBRD environmental requirements closely mirror those of the World Bank/IFC and other IFIs “The EBRD supports a precautionary approach…..” EBRD Environmental Policy

7 Summary of EBRD Environmental Requirements Audit of any existing facilities EIA’s for new developments Compliance with national legislation European Union or similar international standards ILO Core Standards (forced labor, child labor and discrimination) 10 Performance Requirements (similar in scope to IFC and therefore Equator Principles)

8 Environmental and Social Policy Effective Date: 12 November 2008 Environmental/Social Management Labour and Working Conditions Pollution Prevention Community Health, Safety and Security Resettlement Biodiversity, Conservation and Sustainable Management of Living Natural Resources Indigenous Peoples Cultural Heritage Financial Intermediaries Information, Disclosure and Stakeholder Engagement

9 “Evolution” of EBRD EHS Policy *Environmental Management, The Bank’s Policy Approach Different pagination and includes guidelines EBRD is Currently Revising ES Policy Part of routine update (≈ five years) Draft for consultation in early 2014 Will be rolled out before year end 2014

10 Recent Trends in Scope/Issues of Concern Social Indigenous Peoples Gender Carbon and Climate Biodiversity Water

11 Trends? Not Scientific Journals but will Influence Public Perception and Bank Shareholders

12 Main Environmental Issues Induced Access to large remote areas (Mongolia, eastern Russia and Kazakhstan) Solid Waste Management Waste Rock Piles/Acid Rock Drainage Dewatering and Water Balance Stability of Tailings Cyanide Management Facility Closure

13 Contacts Yerlan Ramazanov Principal Banker, Energy & Natural Resources Russia and Central Asia Tel: