US bank authorises US$500m loan for Oyu Tolgoi

May 18 • Featured, Mining, News • 1570 Views • No Comments on US bank authorises US$500m loan for Oyu Tolgoi

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The Export-Import Bank of the United States said its directors had authorised a US$500 million loan for development of Rio Tinto’s Oyu Tolgoi copper-gold project in Mongolia.

US-Exim-Bank

In March, Bloomberg said Rio had secured bank pledges amounting to at least US$3 billion of the US$4 billion project financing it required to fund Oyu Tolgoi, quoting three people familiar with the matter.

Ex-Im Bank’s chairman and president Fred Hochberg said the investment would support 2,000 jobs in the US through the use of American-made products at the mine.

Oyu Tolgoi, which is expected to ship its first copper-gold concentrate next month, is owned 66% by Rio offshoot Turquoise Hill Resources Ltd and 34% by the Mongolian government.

Tensions between the Central Asian country, Rio and Turquoise Hill have heightened following attempts by the government to renegotiate the investment agreement that governs the US$6.6 billion project.

Discussions have continued, but the company said it still expects to ship its first copper-gold concentrate from Oyu Tolgoi by the end of next month.

Ex-Im Bank says it provides financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase US goods and services.

Source: www.mining-journal.com

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