$180 million loan to Energy Resources

In its largest investment in Mongolia to date, the EBRD is raising the standards in the country’s mining industry with a $180 million loan for the construction of the rst coal washing plant in Mongolia.

The financing is extended to Energy Resources, a private Mongolian mining company, which owns and operates the Ukhaa Khudag (UHG) coal mine in South Gobi, producing high quality coking coal.Thee EBRD holds a minority stake in the company.

On July 6, G.Battsengel, CEO, Energy Resources and Philip ter Woort, Head of EBRD Oce in Mongolia signed the Loan agreement

The proceeds of the loan will finance the construction of a Coal Handling and Preparation Plant (CHPP) at the UHG mine. e plant will be built in line with the latest international best practices, bringing the highest environmental standards to Mongolia’s mining sector.

The new plant will enable Energy Resources to increase exports, boost its competitiveness in both international and domestic markets, and help the company to establish its brand name for Mongolian coking coal in the Chinese and south-east Asian markets.

In addition, as part of the project, the company will support small and medium companies in the mining cluster in cooperation with the EBRD’s TAM/BAS programme*, thus creating new business opportunities in Mongolia and contributing to the sustainable development of the mining sector.

The EBRD loan is complemented by grant nancing of €1.2 million, which will be used to initiate the digitalization of the mining licences archive of the Mineral Resources Authority of Mongolia, which will improve the transparency and accessibility of the records. is will lead to lower costs for acquiring geological information, enabling mining companies to increase investments in exploration.

“This project will embed the highest international standards in the mining industry in Mongolia, serving as a great example to follow by other players in the sector. e EBRD’s investment will have wider positive implications in Mongolia by creating new business opportunities for local companies servicing the mining industry”, said Riccardo Puliti, EBRD Managing Director for the Energy Business Group.

“I am pleased to have such a prestigious nancial institution to take an interest in our mining operations and support our company. It is an important validation of the quality of the mine and the operational, safety and environmental standards which we adhere to. We pride ourselves in developing UHG into a world class operation which can continue to attract quality investors into Mongolia”, said Energy Resources’ Chairman, Jambaljamts Odjargal.

Since the beginning of the EBRD’s operations in Mongolia in 2006, the Bank has committed over €294 million across 30 projects in various sectors of the Mongolian economy, with total projects cost of €933 million.

*The EBRD’s TurnAround Management (TAM) and Business Advisory Services (BAS) Programme helps private enterprises to adapt to the demands of a market economy. These complementary programmes develop the micro, small and mediumsized enterprises through a multitiered approach. TAM/BAS is fully integrated into the EBRD’s activities, alongside banking and investment.

The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia.

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