MBR Long-Term Development Plan

completed

Summary Of Project Information (SPI)Project Name:Brazil-MBR LTDPRegion:Latin America and CaribbeanSector:Project No:009343Projected Board Date:June 2, 1999Company Name:Minerações Brasileiras Reunidas S.A. (MBR)Technical Partner and/or Major Shareholders MBR is a private company 84.8% owned by Caemi Mineração e Metalurgia S.A. (Caemi). A group of Japanese steel and trading companies led by Mitsui owns 10.2%. Bethlehem Steel of the USA owns 5%.Project Cost Including proposed IFC investment Project cost is US$300 million. The currently proposed IFC investment is US$25 million, including up to US$20 million in loan and at least US$5 million in equity or quasi-equity.Location of project and Description of site The project involves the development of mines and associated infrastructure south of the Belo Horizonte, in the state of Minas Gerais, and improvements to MBR''s port facility at Guaiba Island, located southwest of Rio de Janeiro in the state of Rio de Janeiro.Description of Company and Purpose of Project MBR is an iron ore producer and existing IFC client. By 2003, a significant portion of its recent mine production capacity will be exhausted. The project will replace the capacity of the exhausting mines and boost overall capacity from 28 million to 32 million tons of iron ore per annum. The timing is critical, as finance must be in place within the next six months to avoid a period of capacity reduction and associated loss of market position.Environmental Category and Issues The LTDP is a Category A project. Environmental and social issues include: air emissions and noise; effects on water supply and discharges to natural receptors; waste management and reclamation; effects on sedimentation basins and natural habitats; occupational health and safety; and social aspects of land use or re-use after reclamation. Mitigation measures include: dust control; treatment of external discharges from sedimentation basins and tailings dams; reclamation of waste dumps and other affected areas; minimization of impacts on natural habitats; development of natural reserves; sound occupational, health and safety practices; consultation and negotiation with local communities; and action according to any agreements reached.The is from the InfoShop.Host country location of environmental documentsSecretaria Municipal de Meio Ambiente de Nova LimaPraça Bernardino de Lima 80Nova Lima 34000 - 000Date SPI sent to InfoShop: May 3, 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) 473-3800Fax: (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).