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:
- 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.
