Ex-Im Approves $500 million to Finance U.S. Exports for Use in Mongolian Mine
May 16, 2013
(Ex-Im Bank)
Transaction Will Support 2,000 Jobs Across
Several States
Washington, D.C. – The board of the
Export-Import Bank of the United States (Ex-Im
Bank) has voted to authorize an approximately
$500 million direct loan to finance the
continued development of a Mongolian mine that
upon completion will generate approximately 30
percent of the Mongolian GDP.
Additionally, Ex-Im Bank's financing will
support approximately 2,000 U.S. jobs across
the United States, according to Bank estimates
derived from Departments of Commerce and Labor
data and methodology.
"This transaction will not only support good
jobs and bolster our economy here in America,
it will also provide a lift to the Mongolian
economy and directly impact the country's GDP,"
said Ex-Im Bank Chairman and President Fred P.
Hochberg. "Moreover, by using American-made
products in this large project, the financing
will support thousands of U.S. jobs in states
like Arizona, Colorado, Illinois, New York, and
Texas. This transaction is even more proof of
the value of exports in continuing to help the
U.S. economy grow."
The Oyu Tolgoi mine, which is located in the
South Gobi region approximately 550 kilometers
south of the the capital city Ulaanbaatar, is
an open-pit and underground copper mine that
will produce concentrate containing copper,
gold, and silver. Once developed, the mine will
rank as one of the largest copper mines in the
world. It will also count as one of the most
important capital projects in Mongolia.
The mine is operated by Oyu Tolgoi LLC, which
is jointly owned by Turquoise Hill Resources
Ltd. of Canada and Erdenes Oyu Tolgoi LLC of
Mongolia. Leading global mining company Rio
Tinto holds a majority stake in Turquoise Hill.
Ex-Im Bank has worked closely with the other
lenders and sponsors to ensure that the project
was planned to minimize the impacts on the
local residents and environment in compliance
with Ex-Im Bank's strict Environmental
Procedures and Guidelines and Mongolian law.
One U.S. small business that will benefit from
the project is CC Solutions LLC, a Yonkers,
N.Y.-based company that is a specialist in
export credit agency administration. The
company's proprietary software, MTS, has
processed nearly $1 billion in Ex-Im Bank
disbursements across the world.
"The financing of this and other projects by
Ex-Im Bank has allowed our company to provide
high-value professional services, leading to
permanent and partial employment for five
people in the United States," said Valerie
Colville, principle of CC Solutions. "The
Mongolian economy will benefit tremendously
from the development of the Oyu Tolgoi project.
Significant mineral deposits will be recovered
in a responsible and environmentally-sound
manner, and the proceeds will be used for the
human and social development of the people of
Mongolia."
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