The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to EUR 55 million to Asarel Medet AD, a leading copper producer in Bulgaria, to support the modernization and decarbonization of its mining operations, the bank said in a press release on Monday.

The loan will support capital expenditure for sustaining and exploration activities at the company’s open-pit copper mine in Panagyurishte, as well as investments in captive renewable energy generation. The investments are expected to improve operational efficiency while reducing emissions associated with electricity consumption.

The loan is expected to have an impact primarily through its green component, with around 68% of the EBRD financing qualifying as green finance. The project will also support improvements in corporate governance by strengthening the company’s compliance policies and procedures.

“This project demonstrates how targeted financing can support the sustainable development of critical raw material supply in Europe. By combining operational improvements with renewable energy integration, Asarel Medet is advancing both competitiveness and alignment with the green transition,” Jacqui Powell, EBRD’s Managing Director for the Corporate Sector said.

Dimitar Tsotsorkov, Chairman of the Supervisory Board at Asarel Medet said: “Asarel is pleased to deepen its cooperation with the EBRD on a comprehensive environmental, health and safety, and social action plan aligned with the highest international standards. As a major supplier of copper to Europe’s industry and energy transition, maintaining strong ESG (environmental, social, governance) performance is essential to our competitiveness. We appreciate the constructive support of the Bulgarian Government and the EBRD as we continue to modernise Asarel Medet in a responsible and sustainable manner”.

The EBRD is one of the leading investors in Bulgaria. To date, the bank has invested nearly EUR 5.2 billion in 324 projects.