The European Bank for Reconstruction and Development (EBRD) has signed a deal to loan Senj Sant US$65m for a new greenfield cement plant in southern Mongolia, about 450km from the capital Ulaanbaatar.
The agreement, signed at a ceremony recently by EBRD First Vice President Phil Bennett, follows an earlier US$20m equity investment for a stake in Senj Sant agreed in May 2013.
“This project represents yet another step towards the diversification of Mongolia’s economy,” Mr Bennett said at the ceremony.
The company, which is owned by Mongolia’s Monpolymet Group, is using EBRD finance to continue funding the construction, commissioning and operation of the 3000tpd plant, which is expected to start production in 2015.
“The EBRD’s long term finance, including equity, is not only helping us build the first greenfield cement plant in Mongolia using environmentally friendly dry process, but also supporting the company in raising business standards to international levels,” the CEO of Monpolymet Group, Ms Munkhnasan Narmandakh, told guests at the signing.