17/07/2024
Mining News

EBRD provides $10 million loan to boost sustainable gold mining in Mongolia

The European Bank for Reconstruction and Development (EBRD) has committed a $10 million (€9.2 million) loan to Khan Altai Resource (KAR), a special purpose gold mining company in Mongolia’s Gobi Altai province. This investment aims to support sustainable mining practices and create new jobs in rural areas.

Key points:

Supported by
  • Loan details and purpose:
    • The $10 million loan will enable KAR to acquire specialized mining and processing equipment.
    • The equipment, manufactured by Caterpillar, is expected to significantly enhance operational efficiency by reducing annual fuel consumption by 200,000 tonnes.
  • Sustainable mining practices:
    • KAR, a subsidiary of Mongolia’s leading sustainability-focused company Max Group, is a founding member of the Mongolian Responsible Mining Initiative.
    • The investment will support the development of infrastructure that uses advanced technologies to minimize environmental impact while producing gold bars.
  • Economic and employment benefits:
    • The project will create hundreds of new jobs in the Gobi Altai province.
    • KAR will also implement training programs to develop the skills of potential employees in the region.
  • Strategic importance:
    • The initiative aligns with the EBRD’s recently approved mining sector strategy, which emphasizes the role of mining in fostering greener economies in line with the Paris Agreement.
    • As of June 2024, the EBRD has invested €2.36 billion in Mongolia through 145 projects, with approximately 90% of funds supporting private-sector companies.

This funding reflects the EBRD’s ongoing commitment to sustainable economic development and its support for the mining sector’s role in creating a greener, more sustainable future.

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