Kingamyambo Musonoi Tailings SARL

completed

_x000C_This ESRS has been revised in order to reflect a slight change in the wording related to the process of categorization of any potential future investment in this project to ensure consistency with IFC procedures.Project update: Subsequent to the disclosure of this ERS in March 2005, First Quantum Minerals (FQM) took over as the principal shareholder of this project from Adastra Minerals Inc. The 18-month hiatus following the FQM take-over has involved a process review by the new owners of the project leading to design changes and improvements. The Environment & Social Impact Assessment (ESIA) documentation has been updated to reflect these design modifications and has incorporated IFC’s new Performance Standards and Environmental, Health & Safety Guidelines. Local disclosure of the updated ESIA documentation was undertaken during the first week of April, 2008, in Kolwezi and Lubumbashi, DRC. This amended Environmental Review Summary is being published for information purposes only, in the interests of transparency, in order to make the updated ESIA documentation available to non-local stakeholders at the earliest possible stage (i.e. as the main construction phase begins). IFC is currently in the process of evaluating providing financial support to the construction and operation of the Kolwezi Tailings Project. If and when IFC opts to provide financing, a comprehensive Environmental and Social Review Summary (ESRS) and Summary of Project Information (SPI) will be disclosed on the IFC disclosure portal, together with the same (attached) ESIA documentation, in accordance with IFC disclosure policies. Hard copies of the attached information may be viewed at: First Quantum Minerals Lubumbashi Office Villa MunuaRoute Du Golf 1714 (near "Dundee" Guest House")Lubumbashi, Katanga Province, DRC First Quantum Minerals Kolwezi OfficeAvenue Lumumba, 617Kolwezi, Katanga Province, DRCSponsor contact details are as follows:Andrew SpiveyGroup Environmental ManagerFirst Quantum Minerals Limited3805, Zambia RoadBox 230022Ndola Zambia Tel. +260 212 651555/6Fax. +260 212 651553Cell. +260 966 784906Email. Andrew.spivey@fqml.comPlease note that some of the figures are too large to disclose in electronic format but that these will be available in hard copy at the World Bank Infoshop and at the locations listed above. Note also that all information below this point, with the exception of the attached ESIA documentation, has not been modified from the original text disclosed in May 2005.The project is to prepare a definitive feasibility study (DFS) including marketing, technical, and environmental and social impact studies, for the re-treatment of processed oxide tailings from the Kolwezi concentrator, located in Katanga province, which began operations in the early 1950’s. Owing to the poor recovery rates obtained at the time, valuable amounts of copper and cobalt were discharged in the form of tailings. The tailings reserve consists of 112.5 million tons grading 1.49% copper and 0.32% cobalt. Preliminary technical studies indicate that a leaching and solvent extraction plant costing about $300 million could produce 30,000 tons per annum (tpa) of copper and 5,500 tpa of cobalt, although technical, marketing, and financing factors, to be considered during the DFS, may dictate a staged development. The project company is Kingamyambo Musonoi Tailings SARL (KMT), a Congolese company which has been created for the purpose of exploiting the tailings. KMT is currently owned 82.5% by Congo Mineral Developments Limited (CMD), 12.5% by Gécamines, the state-owned mining company, and 5% by the government of DRC. CMD is a wholly owned subsidiary of Adastra Minerals Inc. (Adastra). Should IFC’s proposed investment be approved, it will acquire a stake of 10% in KMT from CMD. The Industrial Development Corporation of South Africa (IDC) also has an option to acquire 10% of KMT, which it has elected to exercise. The exercise of the IFC and IDC options would reduce CMD’s shareholding in KMT to 62.5%.