The EBRD is supporting the construction of a greenfield cement plant in Mongolia to meet rising demand generated by a rapidly growing economy.
Under an agreement signed at the 2013 EBRD Annual Meeting in Istanbul, the Bank is providing a US$ 20 million equity investment to the company Senj Sant which will build and operate the state-of-the-art plant. This equity investment is part of a financing package which also includes a loan of up to US$ 130 million. Half of the loan will be syndicated to other lenders.
The investment will enable Senj Sant, owned by Mongolia’s Monpolymet Group, to finance the construction, commissioning and operation of a technologically advanced and environmentally friendly dry process cement plant in Mongolia. The project represents phase I of the cement plant development with an envisaged future total capacity of about 1 million tonnes of cement per year. The dry process used at the plant is environmentally the most-advanced and friendly means of production available to date.
EBRD First Vice President Phil Bennett said: “This investment marks a milestone in our activities in Mongolia. Not only is the volume of funds we are providing significant, but it also signifies an important step in the diversification of the local economy.”
Tseden Garamjav, President of the Monpolymet Group, added: “We see the EBRD’s support for our project as a vote of confidence which goes beyond the provision of finance. The Bank’s involvement will also boost us with a know-how transfer, the implementation of best practice and the adherence to the highest environmental standards and a strong gender agenda.”
Fuelled by its vast mineral resources, Mongolia’s economy grew by 17 per cent in 2011 alone. The new Senj Sant plant will be located in southern Mongolia about 450 km from the capital Ulaanbaatar in a strategic location to supply cement and clinker to nearby large mining projects.