Announcement of IFC Makes First Investment in Silver Mining Sector on March 12, 1979

• International Finance Corporation IFC Press Release No. 79/25 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-477-1234 Monday, March 12, 1979 IFC Makes First Investment In Silver Mining Sector The International Finance Corporation (IFC) is making its first investment in the silver mining sector by helping to finance an approximately $10 million expansion of Compania de Minas Buenaventura S.A., one of the leading silver producers in Peru which, in turn, is a major world supplier. The Minas Buenaventura project is part of a long-term Company expansion program and will more than double annual production of concentrates at its Uchucchacua mine from about 900,000 equivalent ounces of silver at present to 1.9 million ounces. The project includes expanding the mining and milling facili- ties at this location, in the Peruvian high sierra about 95 miles north of Lima, ~ !ncreasing power facilities at the mine, and constructing 200 worker housing units together with social and recreatfc..nal facilities. IFC, the affiliate of the World Bank that assists economic development by supporting the private enterprise sector, is lending $2 million for the project and investing $500,000 in equity. Banco Minero del Peru is lending $2 million and Wells Fargo Bank is lending $1 million. Internal cash generation of approximately $l, million and a $1 million share issue, including IFC's subscription of $500,000, complete the financial plan. The Minas Buenaventura expansion supports the Government's short and long- term development strategies, which rely on the mining sector for a major portion of foreign exchange earnings. The project will generate estimated net foreign exchange e.arnings of $5 million a year and further support economic development by creating 230 jobs in a less advanced region of the country. The Company, which marked its 25th anniversary last year, is majority Peruvian owned. Shareholders include some 350 private Peruvian investors, Centromin-Peru, and workers in the mining connnunity, who hold a special issue of shares. Bureau de Recherches Geologique et Miniers of France is also a stock- tt holder. (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-2032.)