Compagnie Miniere de Seskaoua

disbursing

Translated version of this PSD: French The EBRD is considering providing a loan of USD15 million to Compagnie Minière de Seksaoua to finance a connection to the electricity grid. This would represent a switch away from the current, more costly and polluting, diesel power generation and a plant modernisation with the objective of increasing production capacity. The project is expected to have positive transition impact through: (i) supporting private sector development in the copper industry in Morocco; (ii) demonstration of successful efficiency improvements thanks to the connection to the electricity grid; (iii) setting standards for corporate governance and business conduct through the disclosure of payments in line with PWYP principles, the adoption of IFRS accounting standards, and the implementation of a comprehensive Environmental Action plan. Compagnie Minière de Seksaoua, an independent small to medium-sized mining company operating in Morocco. Up to USD15 million senior loan. USD15 million. Categorised B. The potential and social impacts associated with the construction of around 40km 60kV transmission line and associated transformer and the implementation of various efficiency improvements at Compagnie Minière de Seksaoua’s (CMS) Seksaoua Copper Mine are expected to be site specific and readily addressed through appropriate mitigation and management measures. Investments in efficiency improvements will increase mine production, improve mine efficiency and reduce costs while the transmission line will allow the mine to switch from diesel generators to power from the national grid therefore reducing diesel requirements and emissions. The generators will be retained for backup purposes only. The transmission line is expected to have minimal impacts as it will largely cross barren and some grazing land. The exact route is currently being determined through a feasibility study which includes environmental and social considerations. Although the line is expected to pass near a few villages it will be routed to avoid the need for resettlement. The transmission line will be constructed by the state-owned transmission company, which will also manage land acquisition. Environmental and social due diligence (ESDD) has been carried out by the EBRD and included a visit to the mine site. An Environment and Social Action Plan (ESAP) has been developed for the Project to significantly improve the current environmental, social and health and safety (ESHS) management capacities and performance of the mine and to ensure that the EBRD’s Performance Requirements are met within a timeframe to be agreed. The specific actions in the ESAP will be agreed with CMS prior to financial close but are expected to include the need for a full ESHS audit of the mine to help prioritise E&S and H&S investment requirements, the development of an ESHS management system in line with ISO 14001 and OHSAS 18001 standards including associated procedures and plans for the management of key issues identified at the mine; a program to improve H&S provisions, procedures and training; the design and routing of transmission lines to limit environmental and social impacts; the development of a mine closure and rehabilitation plan; improved waste and hazardous material storage and handling; and improvements in community engagement and information disclosure. None. Companie Miniere de Seksaoua 12 Avenue Ali Abderazzak, 20100 Casablanca