OT Liquidity (EBRD-55780)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mongolia
Geographic location where the impacts of the investment may be experienced.
Specific Location
South Gobi
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 20, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Oyu Tolgoi LLC (Rio Tinto PLC)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Mining
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 350.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Oct 20, 2024

Disclosed by Bank Oct 18, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the EBRD, the project consists of the provision of an unsecured revolving loan of up to US$ 100 million for the development of Oyu Tolgoi copper mine.

The project will provide liquidity support for the ramp up and completion of the Oyu Tolgoi underground mine.

The proposed transaction will aim to address OT's working capital and liquidity needs, allowing the Company to stay on track with the development of its underground mine. Once completed, OT is expected to be the fourth largest copper mine in the world at full capacity. Copper is a critical mineral for the ongoing green transition; copper demand is expected to double to about 50 million tonnes annually by 2035 as the world transitions to cleaner energy. Timely development of the project will help secure copper supply globally and strengthen Mongolia's competitive position as a leading producer.

The Bank's additionality derives from (i) offering a financing not readily available in the market with similar terms and (ii) enabling OT to release capital towards mitigating carbon transition risks and advancing OT's decarbonisation strategy.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the EBRD, Oyu Tolgoi, 66 per cent owned by Rio Tinto PLC (RT) and 34 per cent by the Government of Mongolia, is developing and operating a US$ 26bn copper and gold project, consisting of an open pit mine (in production since 2013) and an underground mine (containing an estimated 80 per cent of the project value; in sustainable production since Marhc 2023), expected to be the world's fourth-largest copper mine (when in operation at full capacity) and to contribute to approximately 30 per cent of Mongolia's GDP. RT is the project manager.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Rio Tinto PLC Parent Company Mining owns Oyu Tolgoi LLC Client Mining

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Client - Oyu Tolgoi LLC:

Tsogtsaikhan Baatar
Email: TsogtsaikhanB@ot.mn
Phone: +976 1133 1880
Website: https://www.ot.mn/en

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works