EBRD backs Turkish gold mine development

By Dilara Zengin and Can Erözden

ANKARA (AA) - The European Bank for Reconstruction and Development (EBRD) said on Tuesday it was providing a €40 million loan ($47.2 million) for construction, development and operation of two Turkish gold mines in the country's northwest.

The loan will serve to finance the construction, development and operation of the Lapseki and the Ivrindi mines in the Canakkale and Balikesir provinces, respectively.

The mines are run by Tumad, a subsidiary of the Turkish conglomerate Nurol Holding.

"The company is one of the first locally-owned private investors to start up a gold mine in Turkey," the bank said.

"We welcome the company’s intention to undertake a greater role in developing skills among young people that will match the demands of the labour market at the time when youth unemployment is on the rise," said EBRD director for natural resources Eric Rasmussen.

The EBRD’s loan is part of a larger $200 million financing package with Akbank and Turkiye Cumhuriyeti Ziraat Bankasi as parallel lenders, the bank added.