Jul. 26, 2017
Deal Concluded for Export of Komatsu Mining Machinery to Mongolia
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President & CEO: Kuniharu Nakamura), in cooperation with Komatsu Ltd. (Head Office: Minato-ku, Tokyo; President & CEO: Tetsuji Ohashi; hereinafter, “Komatsu”), has concluded a 1.2 billion yen export deal for a Komatsu hydraulic excavator and 12 dump trucks to be delivered to Khishig Arvin Industrial LLC, a major mining contractor in Mongolia, via Sumitomo Corporation’s Mongolian subsidiary Transwest Mongolia LLC (Head Office: Ulaanbaatar; Executive Director: David Turnbull; hereinafter, “TM”).
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.
(A Komatsu PC1250-8 hydraulic excavator and four HD465-7 dump trucks ready for delivery)
Corporate Communications Department,