Summary of Proposed Investment
Project Number
5036
Company Name
Samarco Mineração S/A.
Date SPI Disclosed
Nov 12, 1996
Country
Brazil
Industry
Metals and Mining
Status
Completed
Sector
Iron (Pellets, etc.)
Department
Infra-WBG Dir. Minerals & Metals
Environmental Category
A - Significant
Previous Events
Approved : Jan 6, 1997
Signed : May 15, 1997
Invested : Sep 19, 1997
Project Description
SUMMARY OF PROJECT INFORMATION (SPI)
| Project Name | Brazil - Samarco Mineracao S.A. (Samarco) The project comprises the environmental and hydro power components of Samarco’s ongoing investment program. |
RegionLatin America and the Caribbean
SectorMining and Extraction of Metals and Other Ores
Project No005036
Projected Board
DateDecember 12, 1996
Company NameSamarco Mineracao S.A. (Samarco)
Technical Partner and/or Major Shareholders
Samarco’s shareholders are: S.A. Mineracao da Trinidade - Samitri, 51%; and BHP Brazil, a 100%-owned subsidiary of Broken Hill Proprietary Company Ltd., 49%.
Project Cost Including proposed IFC investment
The total cost of Samarco’s investment program is estimated at over US$300 million, of which the IFC-financed components will total US$44.8 million. The proposed IFC investment comprises a senior loan of US$18-23 million for IFC’s own account and a senior loan of up to US$16 million for the account of participant commercial banks for a total investment of up to US$34 million.
Location of project and Description of site
States of Minas Gerais and Espirito Santo.
Description of Company and Purpose of Project
Samarco is an iron ore mining company with mines near Ouro Preto in Minas Gerais and a pelletizing plant and port (Ponta Ubu) near Guarapari in Espirito Santo. Samarco is currently implementing an investment program, including an expansion project that will more than double its pelletizing capacity. IFC is considering an investment in the environmental and hydro power components of this investment program. The proposed IFC investment will help finance: (i) the installation of electrostatic precipitators at Samarco’s existing pelletizing line; and (ii) a 25 MW small hydroelectric plant near the town of Muniz Freire in Espirito Santo.
Environmental Category and Issues
This is a category A project according to IFC’s environmental review procedures. The sponsor prepared a full and detailed environmental assessment (EA) of the entire investment program, including the pelletizing expansion and the Muniz Freire hydroelectric plant. Public consultation and disclosure was also undertaken. As part of its review, IFC carried out a due diligence compliance audit of mining and process operations. Environmental issues such as particulate emissions, liquid effluents, occupational health and safety, land use, water resources and habitat modification along about 1 km of river, resettlement of three households and compensation for loss of agricultural land were all properly addressed. All steps taken were in accordance with state and national regulations, and consistent with World Bank policy.
The Environmental Assessment and EA Executive Summary have been available from the Public Information Center since July 25, 1996.
| Host country location of environmental documents | SEDESU - Secretaria de Estado de Desenvolvimento Sustentavel, Avenida Princesa Isabel, 629-6o Andar, 29010-914 - Vitoria, Espirito Santo, Brazil. |
Date SPI sent to PIC November 12, 1996
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-3800
Fax: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
Related ESRS/ERS
