Sociedad Minera Refineria de Zinc de Cajamarquilla S.A.

Marubeni Corporation of Japan received $9.4 million in MIGA coverage for its $10.4 million equity investment inthe privatization of the Cajamarquilla zinc refinery near Lima. The MIGA guarantee covers currency transfer, expropriation, and war and civil disturbance.

The project is a joint venture with Cominco, Ltd., a Canadian natural resources company. The refinery, established in 1981, was owned and operated by a government company and consistently suffered losses because of problems with the power supply. With the privatization of the enterprise, Sociedad Minera Refineria de Zinc de Cajamarquilla, S.A., power and zinc for the facility will be purchased from other privatized Peruvian companies.

Cajamarquilla is expected to generate more than $75 million in export earnings each year. Approximately 60 percent of the value of the goods and services used by the project will be purchased locally. The project also will provide technical services and on-the-job training for employees.