Compania Minera Antamina S.A.

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MIGA issued two guarantees totaling $23.7 million in shareholder loans and $16.2 million in equity coverage to Mitsubishi Corporation of Japan for its investment in the Antamina copper-zinc mine in the Cordillera Blanca range of the Andes (Compania Minera Antamina S.A.)- one of the largest mining projects in Peru. MIGA guaranteed the project's other investors - Rio Algom Limited, Noranda Inc., Teck Corporation, and senior loans by Citibank NA - in fiscal 1999. The insurance covers the investment against the risks of transfer restriction and expropriation. The development of the mine will significantly improve the infrastructure of the Andean region, as road construction related to the project will link Peru's highlands (home of the Antamina deposit) to a new port, which should foster local commerce and attract future investments. The project will benefit domestic companies through the purchase of local goods and services. The project is expected to employ 6,000 Peruvian nationals during construction and operation. To help families and others in surrounding communities, Compania Minera Antamina S.A. is expected to implement a community development plan that includes support for educational, economic, and cultural activities.

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