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DFF - Khan Altai



Project number:


Business sector:

Natural resources

Notice type:


Environmental category:


Approval date:

09 May 2023



PSD disclosed:

31 May 2023

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The provision of a senior loan of up to US$ 10 milion (€9 million) to Khan Altai Resource LLC, a project entity created for the purpose of developing oxide ore gold mining operation based on Khan Altai gold deposit located in southwestern Mongolia. The loan will consist of two tranches: (i) US$ 4 million of committed tranche; and (ii) US$ 6 million of uncommitted tranche. 

Project Objectives

The proceeds of a senior loan will be used to finance purchase of equipment for leach pad maintenance to achieve sustainable gold production levels

Transition Impact

ETI score: 69

The project will contribute to the framework objectives by supporting the company in the following areas:

Primary quality "Inclusive": introduce a new, replicable and accredited training programme improving skills for significant number of people from the inclusion target group in partnership with (local) vocational schools or universities. 

Secondary quality "Competitive": A local supply chain will be developed increasing the business capacity and skills of local enterprises increasing the local business competitive environment.

Client Information


Khan Altai Resource LLC, established in 2019, is a gold mining company that is operating one of largest gold mining operations in Mongolia.

EBRD Finance Summary

USD 10,000,000.00

US$ 10 million (equivalent to €9 million) senior secured loan to the Company in two tranches: (i) US$ 4 million of committed tranche; and (ii) US$ 6 million of uncommitted tranche. 

Total Project Cost

USD 10,000,000.00

The total project cost amounts to US$ 10 million


Standard-setting: Client seeks/makes use of the EBRD expertise on higher financial standards, including through financial covenants.

Standard-setting: Client seeks/makes use of the EBRD expertise on higher inclusion, gender standards and/or equal opportunities action plans.

Risk mitigation: the EBRD's long-term relationship with a client provides comfort to the client to be willing to take on more risk and/or finance, enabling outcomes such as innovation or expansion into new markets.

Environmental and Social Summary

Category B (2019 ESP).  Due diligence has involved discussions with the client and their advisers on the historical development of the site, the standards and procedures used in regard to EHS risk management, and the future plans for development.  The client has demonstrated sufficient knowledge and experience of the E&S issues associated with mining operations; the experience of key client management gained from several year's involvement with a large scale mining project has benefited the proposed Project.  The client has developed environmental and social procedures appropriate for the current operations related to the oxide heap leach.  Due diligence has shown that these procedures are aligned with the Bank's PRs and are appropriate for the current operations.  The client is evaluating the potential to develop additional, more significant, operations in relation to the mining and processing sulphide ore at the current location.  Given this potential future development, the client will be required to commit to the completion of a full Environmental and Social Impact Assessment (ESIA) for this proposed future development, to be completed alongside the design works for these works, should the Company decide to proceed with this next development phase.  This ESIA process shall include public disclosure and consultation in line with the Bank's requirements.  The commitment to completion of the ESIA and continued adherence to standards aligned with the Bank's PRs are included in an Environmental and Social Action Plan (ESAP) which will be fully agreed with the client prior to Project approval.

Technical Cooperation and Grant Financing

The company is planning to purchase CAT earth moving equipment to be used in oxide ore gold mine in Mongolia, and will use the proceeds of the loan to buy more advanced and climate mitigation technology equipment. A non-TC FINTECC grant amount of around US$ 0.4 milion is calculated based on the price premium of the advanced equipment price compared to standard equipment and machineries. 

Company Contact Information

Gantulga Bazarragchaa
+976 7777 2727
Ulaanbaatar 24 Mongolia 15141, M Plaza, 17th Floor, Sambuu Street

Implementation summary

PSD last updated

31 May 2023

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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