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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
Kansese Cobalt Company Limited
Project ID
1603
Fiscal year
1998
Status
Not Active
Guarantee holder
Banff Resources Ltd. & LaSource SAS
Investor country
France
Canada
Host country
Uganda
Sector
Mining
Gross exposure
 $49.4 million
Project type
Non-SIP

MIGA issued two guarantee contracts totaling $49.4 million in coverage to Banff Resources Ltd. of Canada and LaSource SAS of France for their investments in a cobalt processing project. MIGA coverage is issued against the risks of expropriation and war and civil disturbance.

The project enterprise is an expansion of an earlier project in which MIGA guaranteed Barclays Metals Ltd. of Britain and SEREM of France in fiscal 1993 and 1996. The plant produces cobalt cathode from concentrate. The additional investment will generate increased exports as well as taxes and dividends for the government. It will also benefit downstream businesses such as local hotels, engineering and contracting firms, and fuel suppliers.

The project will improve local infrastructure, help eliminate an environmental hazard caused by stockpile seepage, and use the environmentally safe "bioleaching" process for producing cobalt cathodes.

 
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