MONGOLYN ALT (MAK) LLC
Who is our client
Mongolyn Alt LLC (MAK), was founded in 1993 and is one of the largest mining groups in Mongolia. MAK's principal wholly-owned mining assets consist of 230 million tons (mt) of semi-soft metallurgical (for steel) coking coal reserves at its New Naryn Sukhait (NNS) mine, and 212 mt of copper ore reserves at the Tsagaan Suvarga (TS) mine.
FMO provided a 7-year USD 50 million senior secured EBRD B-loan to MAK for the development of an open-pit copper mine in Tsagaan Suvarga in the South Gobi desert of Mongolia. The TS mine is a mid-sized copper deposit by world standards. The project encompasses the development of the TS mine, the acquisition and installation of a copper concentrate processing plant, investment in infrastructure and utilities.
Why we fund this project
The project is highly developmental as it will allow MAK to diversify into copper and develop the mine in accordance with international environmental and social standards. The TS mine will stimulate revenues, and thus more corporate tax, royalties and foreign currency inflows to the Government of Mongolia. Moreover, in addition to an increase of employment of over 1,000 people, the Mongolian Government will benefit from the income tax of newly employed people. FMO's additionality in the project is substantial due to the scarcity of long-term capital in the Mongolian markets. Moreover, FMO's involvement in the project provided assurance to the co-investor EBRD, with whom the environmental, social and governance (ESG) standards are aligned. The non-financial contribution was largely made by EBRD, who played the leading role in ESG.
- Website client
- Infrastructure, Manufacturing and Services
- Signing date
- Total FMO financing
- USD 50.00 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)