The European Bank for Reconstruction and Development (EBRD) has agreed to lend up to $61.6m (€55m) to Asarel Medet, a copper producer operating in Bulgaria, to fund the modernisation and decarbonisation of its mining activities.

The financing aims to support both sustaining and exploration capital expenditure (capex) at Asarel Medet’s open-pit copper mine in Panagyurishte, alongside investment in self-generated renewable energy capacity.

According to the EBRD, the planned investments are intended to enhance the mine’s operational efficiency and reduce greenhouse gas emissions linked to its electricity use.

Approximately 68% of its contribution qualifies as green finance, reflecting the focus on environmental considerations within the project.

This initiative comes as Bulgaria seeks to accelerate its transition towards a greener economy.

Copper, identified as important for electrification, renewable energy projects and e-mobility systems, is seen as a key raw material in these efforts.

The EBRD stated that supporting more efficient and lower-carbon copper production aligns with both national and European environmental targets.

EBRD corporate sector managing director Jacqui Powell said: “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.”

The financing arrangement also includes measures to improve corporate governance at Asarel Medet, including the enhancement of compliance procedures and policies.

The company supplies copper concentrate to European markets and has undertaken ongoing modernisation of its operations, including steps to boost resource efficiency and the integration of renewable energy.

Asarel Medet supervisory board chairman Dimitar Tsotsorkov 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 and 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 has been active in Bulgaria, having invested around €5.2bn across 324 projects to date.