Loan will help to introduce high quality services in Mongolian mining sector
The EBRD is providing financing of up to $35 million to Leighton LLC to finance the Company’s ability to offer contract mining services to the sponsors of at least two Mongolian projects. Leighton Mongolia is the wholly-owned subsidiary of Leighton Holdings of Australia, one of the world’s largest contract mining companies, with a track record of applying high environmental, health and safety management.
Through the proposed financing, the Bank will support Leighton Mongolia’s ability to provide contract mining services to Mongolian and international mining operators including the ability to procure state of the art mining equipment needed for efficient mining operations in Mongolia. The facility also further strengthens the establishment of Leighton in Mongolia as the first international mining contractor in Mongolia which has a long experience in contract mining and applies the highest environmental, health and safety standards.
Kevin Bortz, EBRD Director for Natural Resources said: “The Bank's project will contribute to support for the sustainable long term development of the mining sector in Mongolia”. “We are pleased to work with Leighton as this is an important credit facility that supports greater competition and increased quality of services in the critical Mongolian mining sector” said Philip ter Woort, Country Head for EBRD Mongolia.
Hamish Tyrwhitt, Leighton Asia's Managing Director said: “This is another important step towards sustainable large scale mining within Mongolia. This will give Leighton the ability to further increase its already large equipment fleet to support the ramp up of mining."
The EBRD started investing in Mongolia in 2006 and has since provided financing totalling EUR131.7 million across a broad spectrum of sectors including financial institution, food producing and mining industry. This is the EBRD’s fifth investment in the natural resource sector of Mongolia, which has included debt and equity investments in coal mines, oil exploration as well as mining services.