EBRD supports gold mining in MongoliaEconomy
Ulaanbaatar/MONTSAME/. EBRD support for a mining investment in southwestern Mongolia will create jobs and ensure the highest possible environmental standards at the Khundii Gold project in the Bayankhongor region of the country.
The Bank is providing a US$ 5 million convertible loan to the Erdene Resource Development Corporation of Canada, a company that is listed on the Toronto Stock Exchange and the Mongolian Stock Exchange and is active in precious and base metals exploration and development in Mongolia.
The EBRD loan will help complete a pre-feasibility study, carry out an environmental and social impact assessment and obtain the licenses and permits necessary to advance the Khundii Gold project into operation by 2021.
Gold mining represents a significant source of foreign currency revenue for Mongolia. In 2018 alone, the country extracted over 21 tonnes of gold, which contributed almost US$ 700 million to the national foreign reserves.
The EBRD will have an option to convert the principal and accrued interest of the convertible loan into Toronto Stock Exchange-listed ordinary shares of Erdene.
In Mongolia the EBRD works to support building a diverse economy by developing the private sector and supporting infrastructure improvements. The Bank has invested more than €1.7 billion in 104 projects in the country since it started operations there in 2006.