Mongolia’s Senj Sant is building a greenfield cement plant in southern Mongolia to meet the growth in demand generated by the country’s rapidly-expanding economy.
Part of a May 2013 financing package, the project has now received further financing by the European Bank for Reconstruction and Development (EBRD), which is extending a US$65m loan to the company. The package included a US$20m equity investment in Senj Sant, which is owned by the Monpolymet Group.
During the signing ceremony at the Bank’s headquarters in London, EBRD First Vice President, Phil Bennett, said: “This project represents yet another step towards the diversification of Mongolia’s economy. Building on the strong foundation of our previous engagement with Senj Sant, we are proud to continue financing this significant industrial greenfield investment. It directly supports and nurtures the development of the private sector in a relatively underdeveloped industry in Mongolia.”
Monpolymet Group’s CEO, Munkhnasan Narmandakh, added: “The EBRD’s long-term finance, including equity, not only helps us build the first cement plant in Mongolia using environmentally-friendly dry process but also supports the company in raising business standards to international levels.”
Construction of the dry-process works began in April 2013 and once commissioned, it is expected to add 1Mta of production capacity to the country’s cement industry.
