The European Bank for Reconstruction and Development (EBRD) has arranged a syndicated loan of US$ 1.221 billion to Oyu Tolgoi LLC, a company established to develop the world’s largest undeveloped copper and gold deposit in the South Gobi region of Mongolia.
Oyu Tolgoi is already producing copper from an open pit mine, but more than 80 per cent of the value of the Oyu Tolgoi lies in the proposed underground mine.
Once fully operational, the underground mine is expected to provide for up to a third of Mongolia’s GDP and contribute to rising standards of living in the country.
The EBRD financing is part of a US$ 4.4 billion package put together by international financial institutions, export credit agencies, development banks and commercial banks.
Oyu Tolgoi LLC, the borrower, belongs to Turquoise Hill, a subsidiary of Rio Tinto, and Erdenes Oyu Tolgoi which is owned by the state of Mongolia.