Mozambique / IFC Finances Mining Exploration to foster economic growth
MAPUTO, Mozambique, January 15, 2009/African Press Organization (APO)/ — IFC, a member of the World Bank Group, will invest in Baobab Resources Plc’s iron ore mining exploration projects in Mozambique, which will support local jobs and economic development.
IFC will provide an equity package of up to $5 million to Baobab, an Australian junior mining company, during the exploration and feasibility study phases. The money will be invested in the company and the project in the Tete province of Mozambique.
“Baobab is very pleased to have secured a joint venture partner of IFC’s reputation to participate in the future exploration and development of the Tete Project,” said non-executive Chairman Jeremy Dowler.
The project will help sustain the company’s local workforce of over 40 employees during the current global financial crisis, while supporting technology and management skills transfer. Should the exploration phase be successful, the mining project is expected to contribute to Mozambique’s fiscal revenues, as well as to local economic development.
“IFC’s investment in Baobab shows our commitment to assisting companies that develop projects in an environmentally and socially responsible manner and in regions with low economic growth,” said William Bulmer, IFC’s Global Head for Mining. “Notwithstanding the current global financial crisis that has dried up much needed liquidity, IFC remains open for business and we will continue to invest in attractive junior mining companies.”
The mining sector is expected to play a growing role in the Mozambican economy over the next few years. The World Bank Group is working with the Mozambican government on mining sector policy reforms and capacity building, on improving the investment climate in the sector, and on improving the transparency of mining revenues through such initiatives as the Extractive Industries Transparency Initiative. IFC’s investments in Baobab and other projects in Mozambique will assist in faster implementation of the proposed policy reforms and enhance the development impact of the mining sector in Mozambique.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year.
SOURCE : The World Bank