Minera Alumbrera Limited

MIGA issued guarantees totaling $14 million for investments in the construction and operation of a gold and copper mine in the Argentine province of Catamarca. MIGA entered into a coinsurance agreement with four other insurers the Export Finance and Insurance Corporation of Australia, the Office National du Ducroire of Belgium, the Export Development Corporation of Canada, and the Export Credits Guarantee Department of the United Kingdom to issue coverage to a group of commercial banks through their agent, Citibank, N.A. (MIGA retains $12 million of liability against the risks of transfer restriction, expropriation, and war and civil disturbance for its own account.) In addition, MIGA issued $2 million in coverage against the risk of transfer restriction to Rio Algom Limited of Canada for its equity investment.

The project enterprise, Minera Alumbrera Limited, will develop the Bajo de la Alumbrera deposit. More than 2,300 construction jobs and 750 permanent jobs will be created. Employees will receive safety, on-site, and supervisory training. An annual $40 million in goods and services will be purchased locally, stimulating local businesses and creating additional employment. The project is expected to generate $43 million in annual tax revenues and to pay $300 million in royalties to the local mining holding company, which is owned by the local government and the local university.