Ulaanbaatar
Baganuur and Shivee-Ovoo coal mines under technical renovation
Economy | Mining
Ulaanbaatar /MONTSAME/ Technology and equipment upgrades are underway at Baganuur and Shivee-Ovoo coal mines under the “Erdenes Mongol” LLC with a view to ensuring reliable and normal operations of the coal mines, electricity source suppliers in the country.
On December 24, Minister of Finance Ch.Khurelbaatar and Director of Infrastructure and Environment Finance Group of the Japan Bank for International Cooperation (JBIC) M.Tanimoto established a financing agreement of MNT 37.5 billion virtually to increase capacity of machinery and equipment of “Baganuur’ and “Shivee Ovoo” JSCs.
Financing of the loan with low-interest rate will enable to use Japanese technology and equipment, supply mining equipment to the abovementioned two companies as well as to establish Investment Fund in partnership with JBIC and make investment in projects to run by subsidiary and associated companies of “Erdenes Mongol’ LLC.
With funding of the export loan by the JBIC, first phase of renovation has been made this year by procuring 20 pieces of equipment worth USD 18.3 million.
Baganuur and Shivee-Ovoo coal mines are going under largest technical renovation after 22 years since the first renovation made in 1998 with soft loan of the World Bank and Japan within “Mongol coal” project.
