Zeravshan Gold Company

completed

Summary Of Project Information (SPI)Project NameTajikistan-Zeravshan Gold ProjectRegionCentral Asia, Middle East and North AfricaSectorProject No007192Projected Board DateMarch 7, 1996Company NameZeravshan Gold Company (ZGC)Technical Partner and/or Major Shareholders Nelson Gold Corporation (49%) with management control of ZGC Government of Tajikistan (51%)Project Cost Including proposed IFC investment US$110 million. The proposed IFC investment is for up to US$7.5 million in equity and shareholder loans as an initial investment in Phase I of the development. Location of project and Description of site The site is located within the Zeravshan Valley in the Leninabad Region of northwestern Tajikistan, approximately 25 km from Penjikent by road. The Zeravshan Valley is flanked by the Turkestan mountain range to the north and the Zeravshan range to the south.Description of Company and Purpose of Project IFC has been requested by the Government of Tajikistan and Nelson Gold Corporation to participate as a 5% partner in the Zeravshan Gold Company joint venture. The objective of the joint venture is to rehabilitate and expand ZGC’s existing gold mining operations and to conduct further exploration in the region. This project comprises Phase I of the development which consists of modification of the existing open pit mine and processing facility to produce approximately 60,000 ounces of gold per year. Completion of a feasibility study for the second phase is also part of this project. Phase II would comprise expansion of the existing open pit mine and a heap leach operation to increase production to 160,000 ounces of gold per year for a minimum of eight years. Following completion of the feasibility study, Phase II would be evaluated as a separate project.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental issues associated with this project include tailings treatment and disposal, waste water treatment, potential modification to land use, the handling of toxic and hazardous materials, and socio-economic benefits. The project includes a cyanide detoxification plant and modification of the existing tailings facility in accordance with the engineering design criteria required by the State of Nevada (USA) for a retrofitted facility. The project sponsor is preparing an environmental assessment as part of the feasibility study for Phase II which would be a category A project.     The is February 7, 1995 from the Public Information Center.Host country location of environmental documentsMinistry of Environment, DushanbeDate SPI sent to PIC February 5, 1996For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental 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).