The European Bank for Reconstruction and Development said
Tuesday it has agreed to a USD180 million loan for the construction of the
first coal washing plant in Mongolia at Energy Resources” Ukhaa Khudag (UHG)
coking coal mine in South Gobi. The new coal handling and preparation plant at
the UHG mine will allow Energy Resources to boost exports and increase
competitiveness in both international and domestic markets.

The EBRD said in March 2009 it was taking an equity stake
in privately-held Energy Resources through an investment of up to USD30
million. The Ukhaa Hudag deposit in southern Mongolia, about 200 km north of
the border with China, has an expected production life of over 100 years, the
EBRD said at the time. Energy Resources is a privately-owned Mongolian
consortium, comprising three domestic groups.