How Verny Capital Turned Vasilkovskoye Field into Gold

In the Akmola region of Kazakhstan, 15 kilometers from Kokshetau, there is a unique Vasilkovskoye field where gold is mined. The history of the Vasilkovskoye ore mining and processing enterprise reflects the history of the country – the enterprise experienced stagnation, complete decline and then the second birth under a new name. Today it is known as Altyntau Kokshetau, a part of the Altyntau group of companies, which is the largest gold mining company in Kazakhstan, and a subsidiary of Kazzinc, which is a Kazakhstani producer of zinc, lead, copper, gold and silver.

However, the Vasilkovskoye ore mining and processing enterprise changed its name only in 2010, when its streak of bad luck was over thanks to the thoughtful reorganization and investment policy implemented by the Verny Capital investment company and its main fund investor Bulat Utemuratov.

The Vasilkovskoye gold deposit was discovered in 1963, having one of the largest reserves in Kazakhstan and CIS countries (over 300 tons). In 1979, mining was started, but the quarry development was carried out very slow, until it stopped completely in the 90’s. At that time, the enterprise used heap leaching technology to produce Dore gold, which made the gold mining lowly profitable. However, with Verny Capital coming into play in 2006, geological exploration based on the best world’s experience was carried out at the Vasilkovskoye field and new options for mining the deposit were developed, taking into account the predominant sulfide ore composition. As the result, a project was adopted based on which a new gold recovery plant was built, where the sulfide ore were processed using progressive combined technology.

During 2007-2009, a new infrastructure of the Vasilkovskoye field was constructed, while investments in the project amounted to more than 700 million dollars. In 2010, the President of the Republic of Kazakhstan, Nursultan Nazarbayev launched the new plant and proposed to give a new name to the enterprise – Altyntau. By 2012, as the result of the introduction of innovative technology under the leadership of Alidar Utemuratov gold production increased 12-fold, from 0.5 tons of gold per year in 2006 to 9 tons in 2012. Though by 2013 Verny Capital withdrew from the shareholders of Kazzinc, its sound investment policy and innovative approach allows the company to remain the industry leader.