 |
|
|
| | August 08, 2008
IFC POURS MORE INVESTMENT IN MINING
Publisher: Manila Bulletin
Author: MELODY M. AGUIBA
|
| | Articles of interest are periodically sent out to our contact list and appear exactly as they did in the original dissemination. Links to the original posting website are provided when available.
The International Finance Corp. (IFC) is pouring in investments in mining, "accepting business risks where other investors are unwilling to," even as its mining portfolio has reached to $ 625 million as of end-June.
Jesse O. Ang, IFC resident representative for the Philippines, said that IFC's "social enterprise" nature is prompting it to invest in the mining sector. The private sector arm of the World Bank, IFC believes mineral development will open up opportunities for the poor to improve their economic status.
"IFC is a development finance institution that fosters economic growth in developing countries," Ang said at a mining conference.
It is really into relatively risky ventures such as in exploration and development, although it does not finance wildcat exploration.
Borrowers can take advantage of longer tenors and no withholding tax policy from borrowing from IFC plus an IFC "stamp of approval" for projects attracting a prudent investment.
Records show that as of June 30 this year, IFC has a total of $ 904- million exposure in the Philippines including $ 7 million in loan syndication in varied sectors. The sector taking up the largest chunk of its financing is power, 49 percent, followed by financial markets, 23 percent.
Other sectors it finances in the country are water, eight percent; real estate, seven percent; transport, six percent; manufacturing and services, three percent each.
Worldwide, its mining portfolio are in Sub-Saharan Africa, 68 percent; Central and Eastern Europe, 16 percent; Latin America and Caribbean, eight percent; East Asia and Pacific, seven percent; and Middle East and North Africa, one percent.
The mineral taking up the largest share of this fund is gold, 33 percent, followed by aluminum, 12 percent; iron ore, eight percent; copper and industrial ores, six percent each; coal, silver, and nickel, one percent each; zinc, 0.5 percent; and diamond, 0.3 percent.
One project that IFC financed in the Philippines is that of MRL (Mindoro Resources Ltd.) which has several prospects in Agusan, Surigao, and Batangas for nickel, copper, and gold.
Among the top projects of IFC outside of the country are a $ 100 million loan in Lonmin Platinum in South Africa where it also has a $ 15 expandable to $ 50 million equity. It has a $ 50 million B-loan and $ 75 million A loan to Ahafo Gold in Ghana; $ 25 million C loan and $ 10 million A loan to Kupol Gold in Russia; $ 4.3 million early stage equity in Guyana Goldfields in Guyana; and $ 5 million early sage equity in Simandou Iron Ore in Guinea.
http://www.mb.com.ph/BSNS20080808131906.html |
| |
| | You can view the Next Related Articles item: Fri Aug 8, 2008, $150M IN MINING DEALS INKED IN CHINA
You can return to the main Related Articles page, or press the Back button on your browser.
|
|
|
