|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary covers investments by Eramet of France and Mitsubishi Corporation of Japan in the PT Weda Bay Nickel project in Indonesia. The investors have applied for a MIGA guarantee of $207 million for a period of up to three years against the risks of expropriation, breach of contract, and war and civil disturbance.
During this period it is anticipated that approximately $230 million will be invested for the engineering and feasibility studies necessary to conclude a bankable feasibility study for the operation of a nickel- cobalt mine with a hydrometallurgical processing plant on Halmahera Island. Once the studies are complete, an investment decision will be taken by the board of Eramet on whether to continue developing the mine and building a processing plant. It is anticipated that the final investment decision should be made before the end of 2012.
The core project will require large capital expenditure of several billion dollars to develop the mine and the processing plant. In addition, in order for the mine to be commercially feasible, additional capital expenditure will have to be undertaken on the associated transportation infrastructure including roads, airport, and port.
The project is a Category A under MIGA’s environmental and social review procedures.
MIGA’s support for this investment is aligned with the World Bank Group’s country partnership strategy for Indonesia for 2009-2012, particularly with regard to making Indonesia’s private sector a driver in broad-based growth, and increasing the country’s competitiveness regionally and globally.
For additional information on this proposed project, please click here.