4. 4
EBRD – Snapshot
Invested over €79 billion*
in more than 3,654 projects since
1991.
In 2012:
– €7.0 billion invested in
297 projects
– 79% of projects in private sector
– 84% was Debt, 16% Equity
* Data as at 31th December 2012
EBRD Portfolio
5. 5
EBRD – Southern and Eastern Mediterranean
New IFI in the region
• Four new countries of operations in the
Southern and Eastern Mediterranean
(SEMED): Egypt, Jordan, Morocco and
Tunisia
• Officially started lending in 2012
• Target investment of €2.5bn p.a. in
SEMED
• Open for business with both private and
public operators in mining sector
• Policy dialogue with authorities will be a
key component of EBRD engagement in
SEMED
• Pipeline currently being built in Mining
sector across all four countries
A growing portfolio
A good start
• Net Cumulative Investment of €280
million over 2012 and H12013*
• Total project value of €750 million
*As at 18th June 2013
6. 6
EBRD – Mining
EBRD Natural Resources team
• 25 Bankers in London, Moscow, Kiev,
Almaty, Sofia, Ulaan Baatar and Istanbul
• Full-time mining engineer
• EBRD’s first Mining Operations Policy
approved in October 2012
Mining projects (1999-2012)
By sub-sectorBy region
Current Natural Resources Portfolio
• EBRD Financing: €4.7 billion
• Total Project value: €23.3 billion
19%
40%19%
11%
11%
South Eastern
Europe
Mongolia
Central Asia
Russia
Eastern Europe &
Caucasus
35%
28%
10%
26% 1%
Coal
Precious metals
Steel making raw
materials
Base metals
Support Activities
7. 7
Gold
Coal
Precious
metals
& other
Mining
Support &
Services
Central Asia & CaucasusCentral & SE Europe Mongolia
Karelsky Okatysh
(2004)
SUAL (2004)
Lydian (2009)
Tirex (2008)
Russia
GV Gold (2011)
Imperial Mining (2008)
High River Gold (2005)
Buryatzoloto (2001)
Zarafshan (2000)
Centerra Gold (2004,
2010)
Dundee (2013)
Hambledon (2012)
Dundee
(2005, 2008, 2010)
Arcelor Mittal
Temirtau (2007)
AIDD (2007)
Leighton (2010)
Energy
Resources
(2009, 2010)
MAK (2007)
Sadovaya Coal (2011)
EPS (2011)
Coal Energy (2012)
Mining – Selected Transactions
Altain Khuder
(2012)
MAK (2012)
8. 8
List of Contents
1. The EBRD and the Natural Resources sector
2. Key external factors for investment decision
3. Case studies
9. 9
Challenges
• Direct or indirect state intervention remains significant in the sector
• Explicit export tariffs and other distortions limit competition in the sector
• Weak institutions and governance in resource-dependent countries
EBRD Operational Priorities
• Focus on supporting private operators, including junior players
• Active policy dialogue to improve reliability, transparency and stability of
legislative and regulatory frameworks
• Transparency: Support implementation of disclosure of payments following
EITI principles and EU and US regulation
Key external factors
Supporting stronger and reliable institutions
10. 10
Challenges
• Structural constraints exist along the mining value chain (transport
infrastructure, processing, suppliers)
• Gaps remain for technology adoption and availability of skilled personnel
• Coverage and depth of environmental, health, safety and social (ESH&S)
regulation falls short of best international standards
EBRD Operational Priorities in Mining
• Financing of key transport infrastructure, as well as utilities (power, water)
• Promoting small businesses supplying the mine.
• Support the introduction of modern equipment, best practises
• EBRD assists in implementing the best ESH&S standards, including
IFC/EBRD policy, key EU Directives on Mine Waste, Water, EIA, BAT
Key external factors
Supporting the mining value chain
11. 11
List of Contents
1. The EBRD and the Natural Resources sector
2. Key external factors for investment decision
3. Case studies
12. To help protect your privacy, PowerPoint has blocked automatic download of this picture.
12
Independent mining company
SEMED (expected 2013)
• Total Project value: $20 million
• EBRD corporate loan of $15 million
• Independent medium-sized mining company
operating in a SEMED country of operation
• Financing infrastructure to switch to a direct link
to the electricity national grid
• Financing plant modernisation with the aim of
increasing production capacity
EBRD value-added
• Supporting medium sized private operator in
EBRD country of operation
• Introducing best ESH&S practices
• Introducing compliance with EITI principles and
IFRS accounting standards
• Supporting energy efficiency by replacing costly
and polluting diesel power generation
• Encouraging switch to a less subsidised source
of power
Overview Key Figures
13. To help protect your privacy, PowerPoint has blocked automatic download of this picture.
13
Oyu Tolgoi
Mongolia (expected 2013)
• Total Project value: $22 billion
• EBRD financing includes:
Up to $400 million A-type loan (15 year)
Up to $1 billion B-type loan (12 year) in a
limited recourse project finance
• World’s largest copper/gold deposit: M&I
resources of 41blb copper and 21Moz gold
• Largest single investment in Mongolian history
and proposed financing would be largest ever
raised in the country
• Project controlled by Rio Tinto (66%) with
Government of Mongolia involvement (34%)
EBRD value-added
• Supporting large FDI and greater private sector
participation in copper production dominated by
state sector
• Promoting skills transfer from a leading
strategic investor, through the adoption of
world-class mining technology
• Setting higher EHSS and transparency
standards, including compliance with EITI
• Supporting backward linkages to suppliers and
contractors in the mining sector and promoting
the development of SMEs
Overview Key Figures
14. 14
Contact
Gabriel de Lastours
Senior Banker
Natural Resources
European Bank for Reconstruction and Development
One Exchange Square, EC2A 2JN, London, United Kingdom
Tel: +44 207 338 7647
E-mail: Delastog@ebrd.com
Web: www.ebrd.com
EBRD Mining Operations Policy: www.ebrd.com/downloads/policies/sector/mining-
operations-policy.pdf
18. 4
EBRD – Snapshot
Invested over €79 billion*
in more than 3,654 projects since
1991.
In 2012:
– €7.0 billion invested in
297 projects
– 79% of projects in private sector
– 84% was Debt, 16% Equity
* Data as at 31th December 2012
EBRD Portfolio
19. 5
EBRD – Southern and Eastern Mediterranean
New IFI in the region
• Four new countries of operations in the
Southern and Eastern Mediterranean
(SEMED): Egypt, Jordan, Morocco and
Tunisia
• Officially started lending in 2012
• Target investment of €2.5bn p.a. in
SEMED
• Open for business with both private and
public operators in mining sector
• Policy dialogue with authorities will be a
key component of EBRD engagement in
SEMED
• Pipeline currently being built in Mining
sector across all four countries
A growing portfolio
A good start
• Net Cumulative Investment of €280
million over 2012 and H12013*
• Total project value of €750 million
*As at 18th June 2013
20. 6
EBRD – Mining
EBRD Natural Resources team
• 25 Bankers in London, Moscow, Kiev,
Almaty, Sofia, Ulaan Baatar and Istanbul
• Full-time mining engineer
• EBRD’s first Mining Operations Policy
approved in October 2012
Mining projects (1999-2012)
By sub-sectorBy region
Current Natural Resources Portfolio
• EBRD Financing: €4.7 billion
• Total Project value: €23.3 billion
19%
40%19%
11%
11%
South Eastern
Europe
Mongolia
Central Asia
Russia
Eastern Europe &
Caucasus
35%
28%
10%
26% 1%
Coal
Precious metals
Steel making raw
materials
Base metals
Support Activities
21. 7
Gold
Coal
Precious
metals
& other
Mining
Support &
Services
Central Asia & CaucasusCentral & SE Europe Mongolia
Karelsky Okatysh
(2004)
SUAL (2004)
Lydian (2009)
Tirex (2008)
Russia
GV Gold (2011)
Imperial Mining (2008)
High River Gold (2005)
Buryatzoloto (2001)
Zarafshan (2000)
Centerra Gold (2004,
2010)
Dundee (2013)
Hambledon (2012)
Dundee
(2005, 2008, 2010)
Arcelor Mittal
Temirtau (2007)
AIDD (2007)
Leighton (2010)
Energy
Resources
(2009, 2010)
MAK (2007)
Sadovaya Coal (2011)
EPS (2011)
Coal Energy (2012)
Mining – Selected Transactions
Altain Khuder
(2012)
MAK (2012)
22. 8
List of Contents
1. The EBRD and the Natural Resources sector
2. Key external factors for investment decision
3. Case studies
23. 9
Challenges
• Direct or indirect state intervention remains significant in the sector
• Explicit export tariffs and other distortions limit competition in the sector
• Weak institutions and governance in resource-dependent countries
EBRD Operational Priorities
• Focus on supporting private operators, including junior players
• Active policy dialogue to improve reliability, transparency and stability of
legislative and regulatory frameworks
• Transparency: Support implementation of disclosure of payments following
EITI principles and EU and US regulation
Key external factors
Supporting stronger and reliable institutions
24. 10
Challenges
• Structural constraints exist along the mining value chain (transport
infrastructure, processing, suppliers)
• Gaps remain for technology adoption and availability of skilled personnel
• Coverage and depth of environmental, health, safety and social (ESH&S)
regulation falls short of best international standards
EBRD Operational Priorities in Mining
• Financing of key transport infrastructure, as well as utilities (power, water)
• Promoting small businesses supplying the mine.
• Support the introduction of modern equipment, best practises
• EBRD assists in implementing the best ESH&S standards, including
IFC/EBRD policy, key EU Directives on Mine Waste, Water, EIA, BAT
Key external factors
Supporting the mining value chain
25. 11
List of Contents
1. The EBRD and the Natural Resources sector
2. Key external factors for investment decision
3. Case studies
26. To help protect your privacy, PowerPoint has blocked automatic download of this picture.
12
Independent mining company
SEMED (expected 2013)
• Total Project value: $20 million
• EBRD corporate loan of $15 million
• Independent medium-sized mining company
operating in a SEMED country of operation
• Financing infrastructure to switch to a direct link
to the electricity national grid
• Financing plant modernisation with the aim of
increasing production capacity
EBRD value-added
• Supporting medium sized private operator in
EBRD country of operation
• Introducing best ESH&S practices
• Introducing compliance with EITI principles and
IFRS accounting standards
• Supporting energy efficiency by replacing costly
and polluting diesel power generation
• Encouraging switch to a less subsidised source
of power
Overview Key Figures
27. To help protect your privacy, PowerPoint has blocked automatic download of this picture.
13
Oyu Tolgoi
Mongolia (expected 2013)
• Total Project value: $22 billion
• EBRD financing includes:
Up to $400 million A-type loan (15 year)
Up to $1 billion B-type loan (12 year) in a
limited recourse project finance
• World’s largest copper/gold deposit: M&I
resources of 41blb copper and 21Moz gold
• Largest single investment in Mongolian history
and proposed financing would be largest ever
raised in the country
• Project controlled by Rio Tinto (66%) with
Government of Mongolia involvement (34%)
EBRD value-added
• Supporting large FDI and greater private sector
participation in copper production dominated by
state sector
• Promoting skills transfer from a leading
strategic investor, through the adoption of
world-class mining technology
• Setting higher EHSS and transparency
standards, including compliance with EITI
• Supporting backward linkages to suppliers and
contractors in the mining sector and promoting
the development of SMEs
Overview Key Figures
28. 14
Contact
Gabriel de Lastours
Senior Banker
Natural Resources
European Bank for Reconstruction and Development
One Exchange Square, EC2A 2JN, London, United Kingdom
Tel: +44 207 338 7647
E-mail: Delastog@ebrd.com
Web: www.ebrd.com
EBRD Mining Operations Policy: www.ebrd.com/downloads/policies/sector/mining-
operations-policy.pdf