IFC’s investment of up to $15 million in miner Kiwara is part of our strategy in sub-Saharan Africa to help junior miners develop and implement social and environmental standards years before they launch full-scale operations.
The ‘early equity’ investment will help Kiwara explore copper and nickel deposits in mineral-rich Zambia, whose economy has suffered in recent quarters due to sharp falls in commodity prices.
IFC will also help Kiwara put in place environmental and social programs years before its early explorations in Zambia mature into full-scale mining operations. Helping clients identify social and environmental risks and opportunities is one of IFC's five strategic pillars.
“Through our early equity strategy, IFC looks to partner with junior mining companies with good management and help them address environmental and social issues maybe four or five years before they begin developing mines,” said IFC Investment Officer Sandile Mbulawa. “We will help Kiwara develop a comprehensive package of health, safety, and community development policies.”
IFC has already advised Kiwara to contract a biodiversity expert to study the environment where the company plans its feasibility studies in Zambia.
As part of developing a community strategy, IFC and Kiwara will also discuss how the miner can participate in IFC’s linkages program, which seeks to integrate local suppliers more fully into mining operations in Zambia’s Copperbelt region.
Sustainable Mining
The World Bank Group is also working with Zambia’s government to improve governance of the country’s mining sector and to increase transparency on how the sector’s revenues are used. This collaboration aims to ensure Zambia’s mining sector is developed in a sustainable fashion.
“We are delighted to be working with IFC, their support is a serious endorsement of our projects and management,” said Kiwara CEO Peter Vivian-Neal. “In addition to direct funding, IFC will play a major role helping us develop long-term social and environmental aspects of our program.”
IFC also made early equity mining investments in Baobab Resources (Mozambique) and Griffin Mirral (Burkina Faso) in FY09. Kiwara was the largest of these three transactions.
For more information contact:
Jason Hopps
Communications Officer
Johannesburg, South Africa
Phone: +27 11 731 3120
E-mail: jhopps@ifc.org
