The European Bank for Reconstruction and Development (EBRD) is continuing its support for the Mongolian company Senj Sant, which is building a greenfield cement plant to meet rising demand generated by the country’s rapidly growing economy. The Bank is extending a US$ 65 million loan to the company as part of a financing package dating from May 2013, which included a US$ 20 million equity investment in Senj Sant.
The company, owned by Mongolia’s Monpolymet Group, is using the finance to fund the construction, commissioning and operation of a technologically-advanced and environmentally-friendly dry process cement plant.
The construction works for this plant began in April 2013 and once completed, it is expected to have a total capacity of one million tonnes of cement per year. The dry process used at the facility is the most advanced and environmentally-friendly means of production currently available.
During the signing ceremony at the Bank’s headquarters in London, EBRD First Vice President, Phil Bennett, said: “This project represents yet another step towards the diversification of Mongolia’s economy. Building on the strong foundation of our previous engagement with Senj Sant, we are proud to continue financing this significant industrial greenfield investment. It directly supports and nurtures the development of the private sector in a relatively underdeveloped industry in Mongolia.”
CEO of Monpolymet Group, Munkhnasan Narmandakh, added: “The EBRD’s long-term finance, including equity, not only helps us build the first cement plant in Mongolia using environmentally-friendly dry process, but also supports the company in raising business standards to international levels.”
Fuelled by the country’s vast mineral resources, Mongolia’s economy grew by 11.7 per cent in 2013. The new Senj Sant plant is strategically located in southern Mongolia.