The European Bank for Reconstruction and Development said Tuesday it agreed to a $180 million loan for the construction of the first coal washing plant in Mongolia at Energy Resources' Ukhaa Khudag (UHG) coking coal mine in South Gobi.

The new coal handling and preparation plant at the UHG mine will allow Energy Resources to boost exports and increase competitiveness in both international and domestic markets, a statement Tuesday from the London-based bank said.

The EBRD said in March 2009 it was taking an equity stake in privately-held Energy Resources through an investment of up to $30 million.