Quick Facts

Where the impacts of the investment may be experienced.
  • Mongolia
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Netherlands Development Finance Company (FMO)
Bank Risk Rating: A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2015-12-15
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
The service or industry focus of the investment. A project can have several sectors.
  • Mining
Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.

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Primary Source

Original disclosure @ FMO website
Updated in EWS: 2017-08-01

Project Description
WHO IS OUR CLIENT The Oyu Tolgoi mining project is one of the largest copper-gold mines under development in the world. When the project achieves full capacity, it will produce about 600,000 tonnes of copper each year, representing around 3 percent of 2014 global refined copper production. FMO provided USD 50 million (USD 25 million under the IFC B-loan and USD 25 million under the EBRD B-Loan) as part of the USD 4.4 billion senior secured debt package to support the development of the underground expansion. With the construction of the open pit and associated facilities (Phase I) now complete, Phase II of the project will focus on the continued operation of the open pit mine and the undertaking of a major expansion which includes a panel cave underground mine as well as expansion or addition of infrastructure to support combined open pit and underground mine production. The project is the largest single investment in the history of Mongolia (a lower middle income country) and according to estimations at the time full production is reached the mine will add up to one-third of Mongolia's GDP. Over the past five years, already USD 3.7 billion was spent on national Mongolian suppliers and USD 1.0 billion in tax was paid to the Mongolian government (compared to GDP of just about USD 12 billion in 2014). Oyu Tolgoi is committed to employing 90 percent Mongolian workforce (boosting employment in a country with just 2.8 million people) and is investing USD 125 million towards Mongolia's largest training and skills transfer program.
Investment Description