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Projects

Project Brief

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. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Société d'Exploitation des Mines d'Or de Sadiola S. A.
Project ID
2503
Fiscal year
1996
Status
Not Active
Guarantee holder
Anglo American Corporation of South Africa Ltd.
Investor country
South Africa
Host country
Mali
Sector
Mining
Gross exposure
 $50.0 million
Project type
Non-SIP

MIGA issued $50 million of coverage to Anglo American Corporation of South Africa, Ltd. (AAC) for its share holder loan to construct and operate an open-cast gold mine and ore treatment plant. MIGA guarantees cover currency transfer, expropriation, and war and civil disturbance risks.

The project enterprise, Sociiti d'Exploitation des Mines d'Or de Sadiola, S.A. (SEMOS), is located on the Sadiola Hill deposit near the border with Senegal. An estimated million tons of ore will be treated annually, and the gold production will be airlifted to Bamako and then to Europe for refining and sale. SEMOS is owned jointly by AAC, IFC, the Government of Mali, and a Canadian prospecting company.

The project will contribute to the expansion of private industry in Mali, supporting the government's efforts to diversify the country's predominantly agricultural economy. It also will have a substantial developmental impact. The mine will employ more than 300 local staff and help raise household incomes in the region. AAC will train staff in various aspects of administration, geology, engineering, metallurgy, and plant operations. Additional engineering, procurement, and construction management services will be used to build and improve access roads, upgrade a small airfield, and install a pump station and storage reservoirs to serve a pipeline that will carry water from the Senegal River to the site. A diesel-fueled power station will be constructed to supply the plant. Some raw materials, such as cement, stone aggregate, poles, cement brick blocks, and low-pressure PVC pipes, will be sourced locally. AAC also will build a primary school, recreation facilities, a small health clinic, and a post office.

An independent consulting firm that prepared the environmental assessment concluded that no significant agricultural activities will be displaced or biodiversity lost. The project includes comprehensive reclamation and erosion management efforts as well as corporate health and safety plans.

 
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