The investment will help complete a pre-feasibility study, perform environmental and social impact estimations for the mining project
The European bank for reconstruction and development (EBRD) has approved a $5m loan to Erdene Resource Development Corporation to advance the Khundii Gold project in southwest Mongolia.
The investment will help complete a pre-feasibility study, perform environmental and social impact estimations and obtain the necessary licenses and permits for the Khundii Gold project, which is expected to be operation by 2021.
The Khundii Gold project consists of the Bayan Khundii and Altan Nar gold deposits. The two projects are part of the Khundii Gold District discovered by Erdene, which is made up of multiple high-grade gold and gold/base metal prospects.
According to EBRD, the investment will create jobs and improve the environmental standards of the Khundii Gold project in the Mongolia.
EBRD stated: “In Mongolia the EBRD works to support building a diverse economy by developing the private sector and supporting infrastructure improvements. The Bank has invested more than €1.7 billion in 104 projects in the country since it started operations there in 2006.”
EBRD stated that in the year 2018, the country has extracted 21 tonnes of gold, contributing $700m to the national foreign reserves.
It stated that gold mining represents an important source of foreign currency revenue for the country.
Erdene is a Canada-based resource company focused on the acquisition, exploration, and development of base and precious metals in Mongolia.
Erdene secured mining license for Bayan Khundii gold project in August
In August, Erdene secured mining license for its 100% owned Bayan Khundii gold project in southwest Mongolia from the Mineral Resource and Petroleum Authority of Mongolia (MRPAM).
The mining license for the Bayan Khundii gold project, which covers 2,309ha, includes the Bayan Khundii resource, Altan Arrow, Khundii North, and Khundii West targets.
According to Erdene, the mining license for the Mongolian gold project is valid for an initial term of 30 years, which can be extended to 70 years.