WASHINGTON, D.C., June 30, 2004
—The International Finance Corporation, the private sector arm of the World Bank Group, will provide a $45 million loan to Montana Exploradora de Guatemala S.A. to develop the Marlin gold project in western Guatemala. It is the country’s first major mining investment in over 20 years.
The Marlin mine is expected to produce an average of 217,000 ounces of gold and 3.3 million ounces of silver annually. The mine has a projected life of 10 to 15 years.
Montana Exploradora de Guatemala S.A is a wholly owned subsidiary of Glamis Gold Ltd., a mid-tier Canadian gold producer, listed on both the New York and the Toronto stock exchanges. Glamis also owns the Cerro Blanco project in Guatemala.
In addition to financing, IFC will assist in the effective planning and implementation of Montana Exploradora’s environmental and social programs by working closely with the company, NGOs, local municipalities, and community members. The environmental and social programs will help raise the standard of living of local communities and provide sustainable economic opportunities that will outlast closure of the mine.
Rashad Kaldany, IFC Director for Oil, Gas, Mining, and Chemicals, said, “The Marlin project will support the government of Guatemala’s efforts to invigorate investment in the mining sector. It will help develop a competitive mining industry as well as set the standard for social, environmental, and technical management for future mining projects in the country.”
According to Bernard Pasquier, IFC’s Director for Latin America and the Caribbean, “As one of the first significant mining projects in Guatemala, IFC is assisting Glamis achieve international best practices, by facilitating community partnerships and identifying and developing potential links with small and medium entreprises, thus creating jobs and enhancing the positive impact in the local economy.”
Kevin McArthur, Glamis President and CEO, noted “IFC's participation in this project is especially welcome since Marlin is the first modern gold mining project in Guatemala. This partnership with IFC will enhance our positive working relationship with the Guatemalan government and regulators, and will also provide opportunities for additional support for our ongoing social and community development programs in the vicinity of the project.”
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
