Oyu Tolgoi WCF (IFC-50384)

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 region
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
  • International Finance Corporation (IFC)
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
Dec 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
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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Nov 22, 2024

Disclosed by Bank Nov 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.

As stated by the IFC, the proposed investment comprises of an IFC A Loan of up to US$100 million and the possible mobilization of parallel loans from international and local commercial banks for the provision of a working capital facility (WCF) to Oyu Tolgoi LLC.

OT is an existing IFC client (under project # 29007). In December 2015, IFC provided a US$400 million A Loan, as part of the US$4.4 billion project finance facility (PFF), to support development of the Oyu Tolgoi copper and gold mine in the Southern Gobi region in Mongolia (IFC/R2013-0033).  The public disclosure documents for the previous investment are available at: https://disclosures.ifc.org/project-detail/ESRS/29007/oyu-tolgoi-llc. 

IFC is considering a short-term facility to support OT’s working capital needs. The facility will support development of the original Project as already approved in 2015, i.e. construction and development of the OT copper-gold mine with no change in the scope of the original Project.
The OT mine is located in the South Gobi region of Mongolia, approximately 600 km south of the Ulaanbaatar, and 80 km north of the Mongolia-China border. OT currently operates open pit mining at the Southern Oyu deposit and limited production from block cave underground mining operations in the higher-grade Hugo North deposit (which is currently being developed and production rates will be increased in the coming years). Year-over-year copper concentrate production continues to increase. Construction of the underground mine involves eventual development of more than 200 km of underground tunnels at a depth of up to 1.3 km. Underground tunnelling is progressing consistently, and underground operations are expected to be fully ramped up by 2027.The proposed facility builds on the 2015 investment and provides short-term liquidity support for OT to ensure that it continues to stay on track with its operational targets, as well as with its development contributions.

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 IFC, Oyu Tolgoi is incorporated in Mongolia. The Government of Mongolia indirectly owns 34 percent of Oyu Tolgoi through Erdenes Oyu Tolgoi LLC, a Mongolian state-owned company. Rio Tinto PLC, a global metals and mining company, directly owns 66 percent of Oyu Tolgoi. Rio Tinto PLC (https://www.riotinto.com/) is publicly listed. It has operations in 35 countries and is headquartered in the United Kingdom.  

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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Oyu Tolgoi LLC:

Tsogtsaikhan Baatar - Manager Finance, Copper
Phone: +976 1133 1880
Email: TsogtsaikhanB@ot.mn
Address: Monnis Tower, Chinggis Avenue 15 Sukhbaatar District – 14240, Ulaanbaatar, Mongolia
Website: http://www.ot.mn/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works