Kasese Cobalt Company Limited

MIGA issued guarantees of $10 million against the risks of expropriation and war and civil disturbance to Barclays Metals Ltd. of the United Kingdom and SEREM of France for a cobalt extraction project in Uganda. The project involves separating cobalt and other metals from mine tailings (which are currently an environmental hazard) for sale in Europe and North America. With a total investment of about $49 million the project will be the single largest private investment in Uganda since its independence in 1962. It is expected to generate annual exports of $160 million, and taxes and dividends for the government of about $53 million annually. The project should become the second largest export earner for the country and help in the development of a remote part of Western Uganda. It will be the largest employer in Kasese state, directly creating approximately 260 new jobs and providing training at all skill levels. The local community will also benefit through the investors' provision of potable water, medical care, and education.