Mongolian-owned mining company Mongolyn Alt (MAK) has secured a $250m loan from the European Bank for Reconstruction and Development (EBRD) to develop the Tsagaan Suvarga copper mine in the country.
The mine is located in the Dornogobi province in south-east Mongolia and the financing will enable the development of open-pit copper and molybdenum deposits, aiding MAK's business expansion.
The project also allows Mongolyn to enhance its domestic and international market competitiveness while helping the country implement sustainable mining practices.
This is the largest investment by EBRD in Mongolia and the bank has plans to syndicate another $100m on the international market
In order to increase sustainability of the project and support linkages, MAK and the EBRD are providing joint grants to support the development of small private businesses in the mine's surroundings, which will be managed by the bank's enterprise growth programme (EGP) and business advisory services (BAS).
The EGP/BAS team will provide capacity building to some 20 local companies and start-ups that operate in the Dornogobi region.
Since the EBRD began operating in Mongolia in 2006, it has provided around $840 million across 46 projects in various sectors of the Mongolian economy.
Image: Mongolyn will develop the Tsagaan Suvarga copper mine with EBRD funds. Photo: Mongolyn Alt (MAK) Group.