Government Mandates Loan Repayment by Erdenes Mongol Subsidiaries

Ulaanbaatar, November 13, 2025 /MONTSAME/. The Board of Directors of “Erdenes Mongol” LLC has been instructed to ensure the repayment of outstanding loans and accrued interest owed by its subsidiaries, “Baganuur” JSC and “Shivee-Ovoo” JSC, to the state budget by the end of the first quarter of 2026. The repayment will be carried out in accordance with loan agreements financed through the government’s external borrowing programs.

Since 1991, the Government of Mongolia has mobilized concessional and highly concessional loans from foreign and international financial institutions to support key domestic development projects. Within this framework, several initiatives have been financed for “Baganuur” and “Shivee-Ovoo” JSC, including:

• The Coal Project, aimed at increasing the sustainable production levels at the Baganuur mine, was implemented under a loan agreement with the Government of Mongolia and the World Bank’s International Development Association (IDA).
• The Baganuur and Shivee-Ovoo Coal Mine Development Project was launched to modernize mining equipment and build new maintenance facilities and substations, financed through a loan agreement with the Japan International Cooperation Agency (JICA).
• In 2021, a loan agreement was concluded with “Baganuur” JSC and “Shivee Ovoo” JSC to implement the Export Credit Line Project, established under a financing arrangement between the Government of Mongolia and the Japan Bank for International Cooperation (JBIC). The project aimed to facilitate the acquisition of heavy mining equipment and modernize the technical infrastructure at the respective mine site.

Accordingly, the Government has issued a resolution instructing that the total debt incurred under these projects by “Baganuur” JSC and “Shivee-Ovoo” JSC – subsidiaries of “Erdenes Mongol” LLC – be transferred to the state budget, according to the Media and Public Relations Department of the Government.