CCM

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    The proposed investment consists of an IFC secured A-loan of Euro 8.9 million equivalent in local currency XOF to Carrières et Chaux du Mali (“CCM,” or the “company,”), with First Loss Guarantee (FLG) and Local Currency Facility (LCF) from IDA PSW’s Blended Finance Facility (BFF). IFC’s investment will provide CCM with permanent working capital and the necessary financing to achieve Project Physical Completion and rated factory capacity (the “Project”).  CCM is the first modern and large-scale lime and limestone producer in Mali, serving the sub-region (Burkina Faso, Guinea, Cote d’Ivoire, and Ghana) and providing an alternative to lime and limestone products, currently imported primarily from Europe. The project concept was previously developed by Africa Resources in 2008, which obtained an authorization for the concession in 2010. CCM was created in 2010 as a special purpose vehicle to develop the limestone project and bring it into the operations phase. Early feasibility studies related to the project entailed quarry exploration, and small-scale exploitation and production to assess product quality.  The lime manufacturing plant was built during 2014-2016 and official production of quick lime products started only in July 2018 but were suspended for 6-8 months due to technical issues related to equipment. CCM currently operates a limestone quarry (500 tons per day (tpd)) crushing capacity, estimated to have enough high-quality limestone raw material for more than 80 years of production at the current capacity), a quicklime plant (100 tpd capacity, entailing crushing, one-chamber, vertical kiln, and two storage silos), and an agricultural lime plant (120 tpd capacity, entailing crushing and bagging of hardened line), in the Kayes Region of Western Mali. There is also a quality control laboratory, administrative office, small dormitory for managerial/expat staff, and cafeteria on-site.  The project site is located approximately 120 km southeast from Kayes and 430 km northwest from Bamako, in the Commune of Bafoulabe. CCM is located in a rural area along a major national road linking Kayes to Tambaga; the closest villages are located approximately 1 km to the northeast (Karaga with more than 500 inhabitants) and 2 km to the southwest (Dibatoumania with more than 1,000 inhabitants); the closest larger settlement is Selinkenyi (with less than 2,000 inhabitants), approximately 3 km to the northeast. There are no immediate neighbors adjacent to the site of the plant, and the surrounding land is uncultivated and used primarily for grazing. The closest other industrial sites (a cement factory and a tile factory) are located approximately 15 km in opposite directions along the same national road.  The Ministry of Mines granted CCM a concession over a surface area of 138 square km on December 30, 2011, which encompasses both the site of the plant (occupying 5.5 hectares) as well as two quarries: the Djikoye quarry, which was previously exploited (2016-2018) over a surface area of approximately 4 square km and is located 6 km to the northwest of the plant and at a distance of 4 km from the village of Djikoye; exploitation of the Gouroundape quarry started in January 2019 and covers a surface area of approximately 9 square km and is located 12 km from the plant and at a distance of 1.5 km from the village of Gouroundape.  CCM owns a fleet of four 25-ton trucks (of which only two are operational) to transport limestone raw material from the quarry to the plant; the company plans to purchase two additional trucks. The transport of finished products for delivery to customer sites is undertaken via subcontracted drivers. The company currently employs 137 workers; only approximately 10 additional jobs are expected to be created to support the commercial aspects of operations.