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.