IFC Finances Base Metal Exploration in Zambia to Foster Economic Growth, Create Jobs
In Nairobi
Houtan Bassiri
Phone: +254 (20) 275 9000
E-mail: hbassiri@ifc.org
In Washington, D.C.:
Hannfried von Hindenburg
Phone: +1 (202) 458 5613
E-mail: hvonhindenburg@ifc.org
Johannesburg, South Africa, July 2,
2009—IFC, a member of the World Bank Group, will invest up to $15
million in the equity of Kiwara to help the company explore and develop
mineral deposits in Zambia, helping create jobs and supporting the country’s
economic growth.
Kiwara, which is listed in London and
Johannesburg, will use the funds to finance copper and nickel exploration
and feasibility studies in Northwest Zambia. IFC will also work with the
company to ensure that exploration and any subsequent mine development
is carried out in an environmentally and socially sustainable manner.
“Developing mineral deposits in Zambia
will enhance the country’s economic growth, contribute to fiscal revenues,
and promote increased investment in regional infrastructure,” said Kiwara’s
Chief Executive Officer Peter Vivian-Neal. “Our partnership will enable
Kiwara to benefit from IFC’s global expertise to implement best practices
in our exploration and mining operations.”
IFC and Kiwara will also discuss how
the mining company can participate in IFC’s linkages program in Zambia,
which seeks to integrate local suppliers more fully into mining operations
in the Copperbelt region.
“IFC’s investment in Kiwara demonstrates
our commitment to supporting projects in regions where economic growth
is most needed and that are environmentally and socially sustainable,”
said Saleem Karimjee, IFC Country Manager for Southern Africa. “IFC’s
investment and Kiwara’s potential participation in IFC’s program to support
small and medium enterprises linked to mining is the start of a partnership
that will increase economic growth and create more opportunities for Zambians.”
Zambia's mining sector has suffered
due to the sharp fall in commodity prices, especially copper. The government
has tried to revitalize the sector by reducing taxes to attract and retain
foreign investment. IFC’s investment in Kiwara will support the government’s
efforts by helping promote Zambia as an attractive destination for mining
investments.
The World Bank Group is also working
with Zambia’s government to improve governance of the mining sector and
increase transparency on how the sector’s revenues are used. The collaboration
aims to ensure that Zambia’s mining sector, a critical part of the economy,
is developed in an environmentally and socially sustainable manner.
About IFC
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. For more information, visit www.ifc.org.
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