Funding for the purchase of this mining equipment will be provided jointly by the Japan Bank for International Cooperation (JBIC) and the Bank of Tokyo-Mitsubishi UFJ (hereinafter, “BTMU”) under an export credit line for Mongolia established between the governments of Japan and Mongolia in June 2013. The financing provided by BTMU, a private financial institution, will be insured by Nippon Export and Investment Insurance (NEXI), a public financial institution. Sumitomo Corporation received its first order using this credit line in June 2015, making this new deal the second such order for Sumitomo Corporation.

Sumitomo Corporation has delivered significant numbers of Komatsu mining machinery to Oyu Tolgoi, one of the world’s largest copper mines situated about 550km from the capital of Ulaanbaatar and developed since 2010 via Rio Tinto, and Sumitomo Corporation continues to offer product support for this mining machinery through TM.

The development of Mongolia’s wealth of natural resources has contributed to its economic development, and the country has been developing copper, gold and other mines, including Tavan Tolgoi, one of the world’s largest coal mines. However, economic circumstances have recently left local contractors unable to obtain financing, making it difficult to secure funds to purchase mining machinery.

Sumitomo Corporation will continue working with Komatsu in using this export credit line for Mongolia to assist in the country’s economic development through expanded sales of Komatsu mining machinery.