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EBRD in loan to Mongolian geological services firm
$2.8 million credit supports expansion and diversification into new services
The EBRD lending up to $2.8 million loan to Geosan, a fast-growing Mongolian geological services company, to help expand its airborne geological survey business and diversify into the charter flight service.
Geosan currently provides a full range of geological and geophysical studies, exploration services and mapping. Its ground and aerial reconnaissance and logistic services serve a range of private mining companies, government and non-government organizations.
The EBRD loan will allow the company to complement its fast-growing business with airborne services, for which there is an increasing demand particularly among mining sector companies.
Due to the vast size of Mongolia’s territory and low level of infrastructure development in the country, ground access to most mining, exploration and agricultural projects is extremely limited and charted aircraft is heavily relied upon for logistics and support.
With the Bank’s finance, Geosan will acquire additional geological survey equipment, construct an airplane hangar and purchase an aircraft for charter flights. With this investment, the EBRD is fostering competition and efficiency in the aviation market in Mongolia, which has been dominated by only a few players.
By offering high quality, new services at best value, Geosan will be able to become a leading ground and airborne service provider not only to mineral exploration, mining and geotechnical companies, but also support other companies in other upcoming sectors, such as tourism, health, construction and environmental sectors.
Geosan was established in 1994 and is fully owned and run by Ikhbayar Gombosuren, one of the top Mongolian geophysicists and mineral exploration experts. With its innovative technologies and services, the Company has managed to become on of the leaders not only in Mongolia, but in the region.
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