Cape Town, South Africa, February 7, 2011
– IFC, a member of the World Bank Group, today announced it plans to invest $300 million in mining companies operating in Africa over the next three years to help support growth in the mining sector, a major source of employment, revenue, and skills transfer for countries across the continent..
Last year, IFC’s portfolio of mining clients helped spur economic growth throughout the developing world by providing over 50,000 jobs, paying over $1 billion in government revenues, spending over $3 billion on local goods and services, and investing over $150 million on community development programs.
Andrew Gunther, Senior Manager, IFC Infrastructure and Natural Resources in African and Latin America, said, “Mining is a critically important yet challenging sector and IFC has a role to play in supporting responsible companies that will bring jobs, related infrastructure and government revenues to Africa.”
IFC offers mining clients in developing countries a broad range of financial and advisory services throughout the mining life cycle. In Africa, IFC will increase the amount of seed financing it provides to exploration-stage companies through its early equity mining program.
IFC is also looking to support mid-tier mining companies by participating in project and corporate financing partnerships that will support mining development and expansion. IFC will continue to work with mining majors to develop large projects with the potential to transform regional economies.
IFC is expanding its work in Advisory Services that focus on the mining sector. IFC provides supply chain SME capacity building, and new programs aim to help the industry to use resources more efficiently with less impact on the environment. IFC Advisory Services will also support community engagement so that local communities can benefit more from mining activities.
IFC’s global mining portfolio spans 37 countries, of which 17 are in Africa, and totals more than $400 million. Its recent mining investments in Africa include: Gryphon Minerals and Volta Resources in Burkina Faso; Helio Resource and Petra Diamonds in the United Republic of Tanzania; Nyota Minerals in Ethiopia; and Tsodilo Resources in Botswana. IFC also recently invested in the Africa focused New Africa Mining Fund II to help provide funding for junior mining companies.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit