Midal Cables Moz

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Midal Cables Ltd. (“Midal”, or “the Company”), a leading manufacturer of aluminum products with headquarters in Bahrain (http://www.midalcable.com), is seeking financing from IFC to support construction of a US$50 million capital cost plus US$35 million working capital cost, greenfield aluminum rod, wire and electrical conductor manufacturing plant at the Beluluane Industrial Development Zone near Maputo, Mozambique (“the Project” or “Midal Mozambique”). The plant will be constructed on an 11 ha parcel and will have a production capacity of 50,000 tons per year (tpy). The proposed Project will be the sole aluminum rod, wire and conductor manufacturing facility in Sub-Saharan Africa serving markets throughout the region that previously have relied on imports from GCC, South Asia and the Pacific regions. The Project will be located adjacent to the existing Mozal aluminum smelter, which will supply the Project with raw material under a 10 year renewable contract.The process of manufacturing aluminum bar, wire and cable begins with molten aluminum that is cast into a bar form, cooled and drawn through a series of presses where it is formed into various thickness of wire. The wire is rolled onto bobbins and sold as is or further processed through winding or forging into specialized wire and cable products in accordance with specific industry requirements.Midal’s existing operations are situated in Bahrain’s Askar industrial complex. The Company sources molten aluminum for the neighboring Alba Aluminum smelter, one of the Middle East’s largest processors of aluminum. Midal has recently established an electric conductor manufacturing operation in Bozuyuk, Turkey (20,000 tpy). In addition to its Mozambique project, Midal plans to establish operations in Newcastle, Australia with a similar 50,000 tpy capacity for rod, wire and conductor, and in Dammam, Saudi Arabia it plans to establish operations similar in product and capacity to its operations in Turkey. Midal’s Mozambique operations will source virgin aluminum ingots from Mozal and re-melt the aluminum for the manufacture of rod, wire and cable for domestic sale and export.IFC’s review indicated that the investment will have impacts that must be managed in a manner consistent with the following Performance Standards: _x000B_- PS 1: Social and Environmental Assessment and Management Systems; _x000B_- PS 2: Labor and Working Conditions; _x000B_- PS 3: Pollution Prevention and Abatement; and_x000B_- PS 4: Community Health, Safety and Security.Midal’s Mozambique operations will be constructed within the existing Beluluane Industrial Park, a 700 ha industrial and free trade zone established near the port of Matola in 1998, which currently accommodates 36 industrial units including the Mozal aluminum smelter. The land has been leased from the industrial park’s management entity known as Beluzone. Considering that the commercial development of the industrial park has been underway for more than a decade, the Project will not result in adverse impacts related to PS5: Land Acquisition and Involuntary Resettlement, PS 6: Biodiversity Conservation and Sustainable Natural Resource Management; PS7: Indigenous Peoples or PS8: Cultural Heritage.