Washington, D.C., May 31, 2006-
The International Finance Corporation, the private sector arm of the World Bank Group, has bought shares worth $2 million in the mining company Gippsland Limited. Gippsland is looking at developing its tantalum, tin, and gold exploration activities in Egypt. This is IFC’s first investment in the Egyptian mining industry and will highlight the benefits of adopting international standards in the sector’s development.
The financing will allow Gippsland to expand on the work of a recent feasibility study to ensure commercial viability for its Abu Dabbab tantalum and tin project. IFC's funding will also support the company's ongoing gold exploration activities in Egypt.
Rashad Kaldany, IFC’s Director for Oil, Gas, Mining, and Chemicals, said, “We are delighted to team up with Gippsland on its activities in Egypt and to support the Egyptian government’s intention to develop its mineral resources in line with international best practice.”
Jack Telford, Executive Chairman of Gippsland, added, “We are pleased to partner with IFC at this important stage in our development. IFC’s investment and vast international and industry experience will assist us in developing our tantalum, tin, and potential gold projects. It will also provide valuable guidance on community engagement and other mining development best practices.”
Gippsland is an Australian company listed on the Australian Stock Exchange and London’s Alternative Investment Market. The company’s main development and exploration licenses are in Egypt.
Tantalum is a mineral that can store energy in a size- and weight-efficient way, and is therefore attractive for use in mobile telephones, pagers, personal computers, and automotive electronics.
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit
www.ifc.org
.
