Jun. 12, 2015
Sumitomo Corporation Closes Deal to Export Komatsu Mining Equipment to Mongolia
First Deal Using Export Credit Line for Mongolian Government
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) in corporation with Komatsu Ltd. (Head Office: Minato-ku, Tokyo; President and CEO: Tetsuji Ohashi; hereinafter, “Komatsu”) has closed a deal to export two Komatsu hydraulic mining excavators , worth approximately 500 million yen, through its Mongolian subsidiary Transwest Mongolia LLC (Head Office: Ulaanbaatar; CEO: David Turnbull) to Khishig Arvin Industrial LLC, a leading mining contractor in Mongolia.
This is the first contract Japan Bank For International Corporation (JBIC) and Bank of Tokyo-Mitsubishi UFJ(hereinafter; BTMU) are co-financing under export credit line for Mongolian government, which was established in June 2013.
The part of the financing which will be done by commercial bank, BTMU, will be covered by the insurance of official financial institution, Incorporated Administrative Agency, Nippon Export and Investment Insurance (NEXI).
In 2010, Sumitomo Corporation supplied a large volume of Komatsu mining equipment for Rio Tinto’s Oyu Tolgoi mine, one of the world’s largest copper and gold mines, located about 550 kilometers from Ulaanbaatar, the capital of Mongolia. For the mining equipment supplied, Sumitomo Corporation has been providing product support services through Transwest Mongolia. Other coal, copper and gold mines are also being developed in the country, including the Tavan Tolgoi mine, in order to attract foreign investment. Due to economic conditions in Mongolia, however, local contractors are unable or unlikely to obtain loans, making it difficult to finance the purchase of mining equipment. In corporation with Komatsu , Sumitomo Corporation will continue to work on the sales of Komatsu mining equipment by utilizing export credit line for Mongolian government as appropriate.
Komatsu hydraulic mining excavator “PC2000-8”
Corporate Communications Department,