Project sponsor and major shareholders of project company

Calidra traces its roots back the beginning of the 20th Century and is majority-owned (52%) by the Riefkohl Family of Mexico. The company’s other shareholders are Graymont Ltd. of Canada (40%) and IFC (8%). IFC’s shareholding dates to 1998, when IFC made an equity investment in the Company as part of the financing of the first project it undertook with Calidra.

Total project cost and proposed IFC investment

The two and one-half year investment program is estimated to cost up to $45 million. The proposed IFC investment would consist of a loan of about $20 million equivalent for IFC's own account. Up to an additional $10 million equivalent may also be raised in parallel from another bank. The balance of funds will come from internal cash generation and a share capital increase, which was recently completed.

Location of project and description of site

The key components of the project will be undertaken on or adjacent to sites Calidra currently operates in Acajete (near Puebla) and near Colima. The two kilns for Acajete will be installed directly next two existing kilns operated by Calidra. The kiln to be installed near Colima will be on a quarry which is off of an isolated section of an existing highway.

Description of company and purpose of project

Grupo Calidra S.A. de C.V. (Calidra, or the company) is Mexico’s leading producer of lime and lime-related products, with 2002 revenue of approximately $80 million equivalent. The company operates 17 plants across Mexico and one in Honduras. Its operations comprise the quarrying of limestone, its processing into various grades of quick- or hydrated lime, packaging, and sale to the construction, steel, chemical, mining, agricultural, waste treatment and other industries. The main components of the project include: - the installation of three new kilns, - the consolidation and upgrading of lime hydration capacity, - conversion of existing kilns to dual-fuel capability, and - the decommissioning of inefficient kilns and hydrators. The project aims to rebalance Calidra’s production capacity in favor of regions with limited installed capacity for quality lime, targets faster growing market segments, diversifies its customer base to reduce reliance on the construction sector, and lowers operational risks to Calidra by reducing its dependence on a single fuel type.

Environmental and social issues - Category

This is a Category “B” project according to IFC’s environmental review procedure because a limited number of specific impacts may result which can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines, or design criteria. Environmental issues associated with the project include: land acquisition, air emissions, water supply, quarry reclamation, local employment and socioeconomic impacts, fuel storage and handling, employee exposure to noise and dust and environmental and health and safety management systems.

Location of environmental documents in locally affected community

These documents are available at the Head Office of Grupo Calidra in México D.F. (see below) and information is posted at the following locations: Tablero de Anuncios de la Presidencia Municipal de Acajete, Puebla Tablero de anuncios de la Presidencia Municipal de Coquimatlán, Colima Tablero de anuncios de la "Iglesia Principal" de la población de Los Jassos, Delegación de Villa de Pozos, S.L.P. Tablero de anuncios de la Presidencia Municipal de Apaxco, Edo. de México Tablero de Anuncios de la Presidencia Municipal de Yautepec, Morelos Tablero de Anuncios de la Presidencia Municipal de Torreón, Coahuila

To contact the project company, please write to:

Grupo Calidra Attn.: Enrique Fierro Av. Vasco de Quiroga 1800 PH-4 Col. Santa Fe Del Alvaro Obregón 01210 Mexico, D.F. MEXICO Tel: 01-800-02 19 711