Announcement of Morocco to Modernize Coal Production Facilities with World Bank Loan of Twenty-Seven Million Dollars on March 25, 1985

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 85/41 Contact: Fawzi Rihane INTERNATIONAL BANK O March 25, 1985 -7consT77L0 : an owma,"2) 477-5325 WASHI ON ) C 2013i MOROCCO TO MODERNIZE COAL PRODUCTION FACILITIES WITH WORLD BANK LOAN Morocco will modernize facilities at the Jerada Coal Mine in the northeastern part of the country with the help of a World Bank loan of $27 million. By developing domestic energy resources like coal, Morocco will become less dependent on imported oil and improve its balance of payments. The project will increase the efficiency of the Jerada mine, the only source of coal in the country, thus guaranteeing its continued operation and ensuring employment opportunities in this fairly isolated part of Morocco. A drilling program of 25 deep and 15 shallow boreholes will be carried out in the eastern portion of the Jerada coal basin. The shallow holes will help determine the correct location of future mining areas. The deep holes will confirm the extent of the reserves and the exact position of a new vertical shaft. Underground development work will consist of constructing some 14 kilometers of galleries and inclines. Underground equipment will be installed to mechanize mining where feasible, increase efficiency of underground workings, and improve safety and health conditions. A new vertical shaft, 900 meters deep, will be sunk in the center of the coal basin northwest of the present exploitation area. The shaft will provide additional ventilation to the mine and will help speed up future development by shortening access for personnel and material. To allow the washing of very fine coal, the project will include the installation of a raw coal bin with a capacity of 1,200 tons, an additional fine coal screening station, and a two-kilometer conveyor to the waste dump. The project will have a total cost of $74 million. Co-financiers are Charbonnages du Maroc, $26.5 million, Germany, $12.9 million, and France, $7.6 million. The loan is for 15 years, including four years' grace, with a variable interest rate, currently 9.29 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances. NOTE: Money figures are expressed in U.S. dollar equivalents.