MAC/20: Mines and Communities

Ifc Invests $4.7 Million In Guyana Goldfields Inc.

Published by MAC on 2006-03-16

GUYANA / IFC Invests $4.7 Million in Guyana Goldfields Inc., Encourages Adoption of Sustainability Model in Mining Industry

16th March 2006

The International Finance Corporation, the private sector arm of the World Bank Group, has bought shares worth $4.7 million in Guyana Goldfields Inc., a Canadian mining company with a gold exploration program in Guyana. IFC's first mining investment in the country will encourage sustainable business practices, promote local economic development, and facilitate partnerships between civil society and private enterprise.

The financing will support exploration activities, environmental and social impact assessments, and the commercial and technical assessment in the early stages of the project's development. IFC will also assist the company in establishing an integrated environmental, health, safety, and social management system, in line with both World Bank Group standards and international best practices.

Guyana Goldfields is publicly listed on the Toronto Stock Exchange.

"We are delighted to partner with Guyana Goldfields in an investment that helps Guyana develop valuable mineral resources in an environmentally and socially responsible way," said Rashad Kaldany, IFC's director for oil, gas, mining and chemicals. He added, "We are excited to work with a company that shares our commitment to sustainable development."

"We are pleased to see IFC's support and confidence in the project. The partnership with the IFC recognizes our mutual commitment to social responsibility and will benefit the region," said Patrick Sheridan, president and chief executive officer of Guyana Goldfields.

"This financing fits with IFC's strategy in Guyana to support the private sector in growth generating sectors of the economy, including mining," IFC's Director for Latin America and the Caribbean, Atul Mehta, noted.

Extractive industries are an important component of the Guyanese economy. Between 2000 and 2004, gold and bauxite mining contributed about 10 percent of the country's GDP and about 25 percent of the country's total export proceeds were from gold.

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.

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