Nimba Iron Ore
This summary covers applications made by Euronimba Limited (Jersey), a wholly-owned subsidiary of High Power Exploration Inc. (United States), to cover its equity and quasi-equity/shareholder loan investments into Société des Mines de Fer de Guinée S.A. (SMFG) in the Republic of Guinea and Euronimba Liberia Limited (Euronimba Liberia) in the Republic of Liberia. MIGA has been requested to provide coverage for up to US$135 million against the risks of Transfer Restriction and Inconvertibility, Expropriation, War and Civil Disturbance, and Breach of Contract, for a tenor of up to 4 years.
The MIGA-guaranteed investment will be used for the completion of key studies preceding the development of the Nimba Iron Ore Mine, a high-grade, open pit, iron ore mine in the Nimba Mountains in the Nzérékoré Region in southeastern Guinea approximately 800 km from Conakry. This will include the completion of concept and pre-feasibility studies, a bankable feasibility study, Environmental and Social Impact Assessments (ESIAs), and development of Environmental and Social Management Plans (ESMPs). The studies will also include the assessment of options for the evacuation of the iron ore either through Guinean rail and port infrastructure or through neighboring Liberia. The proposed Nimba Iron Ore Mine is located in an enclave adjacent to a World Heritage Site (WHS) and UNESCO Biosphere Reserve, in a concession area where mining activity is permitted. The study phase will not entail resource drilling or early mine production activities.
While the studies are expected to have minimal environmental and social risks and impacts, the project is classified as Category A under MIGA's Policy on Environmental and Social Sustainability due to the risks inherent to the sector, the unique biodiversity context of the project site and the fact that the risks and impacts associated with eventual construction and operation of an iron ore mine are anticipated to be diverse, irreversible and unprecedented. Click here for the project’s Environmental and Social Review Summary.
The project represents a critical milestone in the long-standing development of the proposed Nimba Iron Ore Mine. Its benefits stem from the mobilization of private sector financing, representing savings to the Government of Guinea, as well as strong technical expertise deployed towards a complex and important asset for the country. MIGA’s involvement in the study phase will also support the development of a bankable project that complies with MIGA’s Performance Standards on Environmental and Social Sustainability, and international best practices in its design and operation. Upon full development, the Nimba Iron Ore Mine has the potential to carry substantial developmental benefits, including but not limited to, revenue generation (taxes and royalties), employment, infrastructure building, improved protection and management of the adjacent World Heritage Site and Biosphere Reserve, and local community development in Guinea and potentially Liberia.