Announcement of Burundi to Receive IDA Credit for Nickel Exploration on June 1, 1981

. . FOR IMMEDIATE RELEASE " •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/94 June 1, 1981 BURUNDI TO RECEIVE IDA CREDIT FOR NICKEL EXPLORATION The International Development Association (IDA) announce~ today the approval of a credit of SDR 3.3 mill ion ($~million) to Burundi for exploring the country's nickel resources. Geological surveys have indicated that Burundi 1 s Buhinda Plateau offers good prospects for the mining of nickel and other minerals such as copper, cobalt, and platinum. The IDA credit will help finance the drilli.ng of additiona·1 test holes in the Musongati area to determine its nickel content, as well as studies of the qua1 ity and avai1abi1 ity of local peat, to ascertain whether it can be harvested and uti 1 ized as fuel for a nickel mining facility. Demonstration tests of the treatment and uti- 1 ization of the peat wi 11 also_ be carried out. •• An analysis of the results of previous exploration work wiil be done in order to predict the metal content of the ore to be processed, to estimate the capital and operating costs of a n-ickel mine, and to determine the most economical treatment method. Funds are earmarked for studies of the hydro-electric power requirements of such an operation, and of potential sites. Since the treatment of the nickel- bearing ore involves the use of sulfur, the possibility of locating sJ1fide or sulfate minerals, both within Burundi and in neighboring countries, will be explored. The data obtained from these investigations will enable the Government of Burundi to make informed decisions regarding the exploitation of its mineral resources, and wi 11 serve as a basis for negotiation with interested industrial sponsors. A profitable nickel project has the potential of providing Burundi with substantial foreign exchange earnings in coming years. The Government of Finland is contributing $1 .8 mill ion towards·the $7.27 mill ion cost of the project. The IDA credit is on standard IDA terms of 50 years, including 10 years of grace, and is interest-free, except for a service charge of 3/4 of 1% per annum, to cover IDA'i administrative costs. The credit will be committed when funds ar~ available. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are • valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit.