Rima Forestry

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The proposed IFC investment is an up to US$25 million A Loan to Rima Industrial S.A. (“Rima” or the “Company”- https://www.rima.com.br/en/home-eg/), the world’s fourth-largest manufacturer of silicon metals, the market leader in Brazil, and the only producer of primary magnesium in the southern hemisphere. Rima’s products are used as raw materials in manufacturing solar panels, semiconductors, refractories, aluminum, auto parts, chemicals, and other critical goods. Rima is vertically integrated, producing 80% of its raw materials and other production inputs. The Company extracts quartz from its own deposits and produces charcoal from its own eucalyptus plantations, ensuring product traceability, quality control and stable wood supply. Rima manages 75,000 hectares of protected native forest and 55,000 hectares of eucalyptus plantations, divided in two forest management units. The first unit consists of 3 farms in the municipality of Buritizeiro, while the second unit comprises 12 farms located in the municipalities of Padre Carvalho, Josenopolis, and Grao Mogol. Both forest management units are situated in the state of Minas Gerais. The proceeds of the loan will be allocated for capital expenditures in the forest management unit of Buritizeiro over the next 2 years. This includes the replanting of 5,000 ha utilizing proprietary eucalyptus clones with higher content of lignin, making them better suited for the production of charcoal compared to typical clones available in Brazil. The loan will also finance the purchase of planting and harvesting equipment and the expansion of the nursery to produce seedlings. The forest management unit of Buritizeiro produces about 76,000 tons of charcoal per annum. In addition to the charcoal produced in its own plantations, Rima purchases less than 15% of the charcoal required for its ferro-alloy production from third-party plantations.