COMSUR V

completed

Summary Of Project Information (SPI)Project NameBolivia-Comsur VRegionLatin America and CaribbeanSectorProject No009670Projected Board DateAugust 30, 1999Company NameCompania Minera Del Sur S.A. (“Comsur”)Technical Partner and/or Major Shareholders Compania Minera Del Sur S.A. (“Comsur”) is an unlisted Bolivian company 100% owned by Panamanian company Iris Mines and Metal S.A. (“Iris”). Iris is in turn owned by Minera S.A. (“Minera”), a Panamanian company which is the sponsor and guarantor of the project. Both Iris and Minera are unlisted. Project Cost Including proposed IFC investment The project cost is US$23million. The proposed IFC investment is a loan of US$10 million.Location of project and Description of site Comsur operates seven mines in the north-west of Bolivia, all but one located in remote areas of Bolivia''s Altiplano.Description of Company and Purpose of Project Comsur, a medium-sized poly-metallic mining company in Bolivia and an existing IFC client, has requested IFC''s support to finance its capital expenditure program over the next five years. Comsur will invest in its mines in Bolivia in order to replace mining equipment, construct shafts in two of its underground mines and make improvements in tailings dams. The capital expenditure program will allow Comsur to achieve its production targets and remain a low-cost zinc producer. Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure, because specific impacts which may result can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of the project consisted of two parts: i) the technical assessment and site review of Comsur’s current operations in Bolivia, and ii) the appraisal of environmental and social information submitted by the project sponsor, and completed by IFC’s and Environment and Social staff. The following potential environmental, health and safety, and social impacts of the project were analyzed: air emissions; water quality; tailings dams safety; occupational health and safety in relation to design, construction and operation of new shafts; resettlement and land acquisition; and public consultation.Based on its assessment of current activities, IFC’s Environmental Unit concludes that Comsur is in compliance with Bolivian and IFC/World Bank environmental and social requirements. On the basis of the review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project will also meet the above-mentioned requirements.      The is from the InfoShop.Host country location of environmental documentsComsur''s Head Office in La Paz, BoliviaDate SPI sent to InfoShop: July 30, 1999“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).