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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