On February 28, 2013, IFC’s board of directors approved IFC’s participation in the Oyu Tolgoi financing. IFC will now begin the process of working with Rio Tinto, the Government of Mongolia and the lending partners to complete the financing package.
IFC supports the growth of the Mongolian economy by investing in private sector companies that create jobs, help diversify the economy, contribute to government revenues and follow high operating standards.
In addition to a number of other investments in Mongolia, across all key sectors (banking, agribusiness, tourism, renewable energy, affordable housing, leasing) and primarily with Mongolian companies, IFC is considering a long-term loan to support the Oyu Tolgoi project. MIGA, also a member of the World Bank Group, is looking to provide the project with a guarantee.
IFC is considering supporting Oyu Tolgoi because the project is a cornerstone of Mongolia’s economic development as the country strives to eradicate poverty and emerge as a middle-income country. The mine is expected to contribute close to one-third of the country’s GDP in the medium-term, with a projected mine life of over 50 years. Investor sentiment regarding Mongolia depends to a large extent on Oyu Tolgoi’s success and the project is in line with our mission to help ensure Mongolia’s private sector has the long-term financing needed to build and operate world class projects that help people and governments realize their potential.