Mongolia: The European Bank for Reconstruction and Development (EBRD) has signed an agreement to provide a US$20m equity investment to Senj Sant, which will build and operate a 1Mt/yr green-field cement plant in Mongolia. This equity investment is part of a financing package that also includes a loan of up to US$130m. Half of the loan will be syndicated to other lenders.
"This investment marks a milestone in our activities in Mongolia. Not only is the volume of funds we are providing significant but it also signifies an important step in the diversification of the local economy," said EBRD First Vice President Phil Bennett.
Mongolia's economy grew by 17% in 2011. The new Senj Sant plant will be located in southern Mongolia about 450km from the capital Ulaanbaatar in a strategic location to supply cement and clinker to nearby large mining projects. Mongolia's Monpolymet Group owns Senj Sant.