The U.S. Export-Import Bank has authorized an approximately $500 million direct loan to finance the continued development of a Mongolian mine that, upon completion, will generate about 30 percent of the Mongolian GDP.
Additionally, Ex-Im Bank's financing will support about 2,000 U.S. jobs across the United States, according to bank estimates derived from Commerce and Labor department data.
The Oyu Tolgoi mine, which is located in the South Gobi region about 550 kilometers south of 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.
A U.S. small business that will benefit from the project is CC Solutions LLC, of Yonkers, N.Y., which specializes in export credit agency administration. The company's proprietary software, MTS, has processed nearly $1 billion in Ex-Im Bank disbursements across the world. - Chris Gillis