MINING CREDIT

closed

Medium- and long-term loans would be provided to small- and medium-scale mining enterpises through CFM and FM to finance fixed assets required to increase production capacity. Equipment would also be leased on a long-term basis, with option to purchase. Credit would also be provided to enterprises for ore reserve development, both on a risk-sharing and secured basis. About ten regional mineral beneficiation plants would be constructed to process minerals produced by small- and medium-scale mining enterprises. Technical assistance would be provided by CRM, CFM and FM to mining enterprises and equipment would be provided to the executing agencies to expand their technical services. The project presents the risks of possible delays in committing resources due to institutional constraints and possible loss of interest in the sector by investors due to mineral price declines. However, these risks are considered to be moderate and acceptable on the whole.