corporate_banner_en

EIB-financed mine project in Mozambique wins Corporate Social Responsibility and Socio-Economic awards

The blog
Press corner
All press releases
All other news
Press contacts
Events
All events
Business events
Institutional events
Newsletter
Publications
All publications
General
Reports
Information
Human resources
Strategies & procedures
Thematic
Geographical
Technical studies
Ex-post evaluation
Capital markets
Economic research
Ordering a publication
EIB Historical Archives Policy
EFSI Scoreboards
Help
Search criteria - General principles
How to search in the register
Result page
Latest documents
Basic search
Public register
Latest documents
Basic search
Frequently asked questions
Help
Search criteria - General principles
How to search in the register
Result page
Request a document
Other public registers
Picture library
News in pictures
Management Committee's Photos
Werner Hoyer
Dario Scannapieco
Ambroise Fayolle
Andrew McDowell
Vazil Hudák
Alexander Stubb
Emma Navarro
The EIB services
Building
Archives
Former Presidents
Former Vice-presidents
from left to right: Mustafa Abdel-Wadood, CEO,Abraaj Capital Limited, Philippe de Fontaine Vive Curtaz,Vice President, EIB and H.E. Eng. Yarub Qudah, CEO of JEDCO
Greater Manchester Metrolink extension
Mr Olaf Scholz, Mayor of Hamburg
Fritz Vahrenholt, Chief Executive Officer, RWE Innogy GmbH, Germany, Karina Veum, Senior Researcher, Energy Research Centre of the Netherlands, Alistair Buchanan, Group Chief Executive, OFGEM, UK regulator of gas and electricity markets and Frauke Thies, EU Energy Policy Coordinator, Greenpeace
Mr Matthias Kollatz-Ahnen, Vice-President of the EIB
from left to right:Jörg Vogt, CFO, Trianel, Germany (Project: Borkum West II Offshore Wind Park), Pierre Lestienne, CFO, C-Power, Belgium (Project: C-Power near Ostend) and Georg Friedrichs, Vice-President, Head of Offshore Wind Projects, Vattenfall, Germany (Project: Thanet Offshore Wind Farm)
from left to right: Mr Kevin Smith, Director Wind Energy, Det Norske Veritas, Norway, Mr Frank V.Nielsen; Chief Technology Officer, LM Wind Power, Denmark and Mr Konstantin Staschus, Secretary General, European Network of Transmission System Operations for Electricity (ENTSO-E)
from left to right: Mr Rober Harrabin, Environmental Analyst, BBC and Mr Hans-Jörg Bullinger, President, Fraunhofer-Gesellschaft of Germany
Mr Paulo Roberto de Oliveira Araujo, Head of Department, BNDES International Division, Mr F. de Paula Coelho, Director of the ALA Department of the EIB and Mr Christophe Nègre, Deputy Head of Division, Legal Department of the EIB
From left to right: Mr. de Paula Coelho, Director of the Asia Latin America Department and Mr Paulo Roberto de Oliveira Araujo, Head of Department, BNDES International Division
From left to right: Mr. de Paula Coelho, Director of the Asia Latin America Department of the EIB and Mr Paulo Roberto de Oliveira Araujo, Head of Department, BNDES International Division
Mr Paulo Roberto de Oliveira Araujo, Head of Department, BNDES International Division
Group picture of the signature Brazil Climate Change Mitigation
Picture of all the participants at the signature EFL loan for SMEs and Mid-Caps III
FROM LEFT TO RIGHT: Mr ANDRZEJ KRZEMINSKI President of the Management Board- EFL and Mrs FÜRSTENBERG-LUCIUS, Director EIB
FROM LEFT TO RIGHT: Mr ANDRZEJ KRZEMINSKI President of the Management Board- EFL and Mr Mariusz KOLWAS, Vice-President of the Management Board - EFL
FROM LEFT TO RIGHT: Mr Andrzej KRZEMINSKI President of the Management Board- EFL Mrs Anita FÜRSTENBERG-LUCIUS, Director EIB Mr Anton ROP, Vice-President of the EIB
FROM LEFT TO RIGHT: Mr Andrzej KRZEMINSKI President of the Management Board- EFL Mrs Anita FÜRSTENBERG-LUCIUS, Director EIB, Mr Anton ROP, Vice-President of the EIB
FROM LEFT TO RIGHT: Mr Andrzej KRZEMINSKI President of the Management Board- EFL Mrs Anita FÜRSTENBERG-LUCIUS, Director EIB Mr Anton ROP, Vice-President of the EIB
FROM LEFT TO RIGHT: Mr Zygmunti TRYBKA, Director of the Financing Department EFL and Mr Piotr KOZIOL, Director of the Legal Department EFL
Group picture of the signature EFL Loan for SMEs and Mid-Caps III
from left to right:Mrs Flavia Palanza, Associate Director for Central and Eastern Africa, EIB, Mr. Jack Nkusi Kayonga, Chief Executive Officer of the Rwanda Development Bank and Mr Patrick Walsh, Director responsible for Africa, Caribbean and Pacific operations.
from left to right: Mr. Jack Nkusi KAYONGA, Chief Executive Officer of the Rwanda Development Bank and Mr Patrick Walsh, Director of the Central and Eastern Africa, Pacific Department of the EIB
Mr. Jack Nkusi KAYONGA, Chief Executive Officer of the Rwanda Development Bank
from left to right:Mrs Flavia Palanza, Associate Director for Central and Eastern Africa, EIB, Mr. Jack Nkusi Kayonga, Chief Executive Officer of the Rwanda Development Bank and Mr Patrick Walsh, Director responsible for Africa, Caribbean and Pacific operations.
from left to right:Mrs Flavia Palanza, Associate Director for Central and Eastern Africa, EIB, Mr. Jack Nkusi Kayonga, Chief Executive Officer of the Rwanda Development Bank and Mr Patrick Walsh, Director responsible for Africa, Caribbean and Pacific operations.
J.A.Mannai, Président du Fonds Monétaire Arabe; P.Maystadt, Président de la BEI; A.M.Ali Al-Madani, Président de la Banque Islamique de Développement; F.Baroin, Ministre de l'Economie, des Finances et de l'Industrie; D.Kaberuka, Président de la Banque Africaine de Développement; C.Lagarde, directrice générale du FMI
Photo de la signature
Photo de groupe de la signature
from left to right: Founders and biggest investors:
From left to right: all investors+Fund Manager:
Mr Anton Rop, Vice President of the European Investment Bank
de gauche à droite: M. Othman Ben Arfa, PDG de la STEG, M. Philippe de Fontaine Vive, Vice-président de la BEI et M. Mohamed Nouri Jouini, Ministre du Développement et de la Coopération Internationale
de gauche à droite: M. Othman Ben Arfa, PDG de la STEG et M. Philippe de Fontaine Vive, Vice-président de la BEI
de gauche à droite: M. Othman Ben Arfa, PDG de la Société Tunisienne de l'Electricité et du Gaz , M. Philippe de Fontaine Vive, Vice-président de la BEI et M. Mohamed Nouri Jouini, Ministre du Développement et de la Coopération Internationale
De gauche à droite:
Closing Ceremony Rural Impulse Fund II SA, SICAV-SIF; Luxembourg 1st June 2010
Closing
de gauche à droite: M.Carlos Da Silva Costa ,Vice Président de la BEI et M. Valls i Riera, Président de l'Autoridad Portuaria de Barcelona.
de gauche à droite: Carlos da Silva Costa, vice-président de la BEI et Ignacio Galán, Président d'Iberdrola
M. Philippe Maystadt, Président de la BEI, S.E.M. Premier Ministre de la Serbie et M. Dario Scannapieco, Vice-Président de la BEI à la signature de contrats
M. Philippe Maystadt, Président de la BEI et S.E.M. Mirko CVETKOVIC, Premier Ministre de la République de Serbie à la signature du livre d'or
Mr. I Dalianis, Financial Manager of Symetal ,Mr. K Kontos, General Manager of Symetal , Mr P Sakellaris Vice President of the EIB, Mr. D Kyriakopoulos, Executive Vice President of Elval and Mr. L Varouchas, General Manager of Elval
Mr P.Sakellaris, Vice President of the EIB and Mr D. Kyriakopoulos, Executive Vice President of Elval
Mr P. Sakellaris, Vice President of the EIB and Mr D.Kyriakopoulos, Executive Vice President of Elval
Press conference in Athens today, Mr Plutarchos Sakellaris, Vice President of the EIB
Press conference in Athens today, Mr Plutarchos Sakellaris, Vice President of the EIB
Press conference in Athens today, Mr Plutarchos Sakellaris, Vice President of the EIB
Press conference in Athens today, Mr Plutarchos Sakellaris, Vice President of the EIB
The Marseille Center for Mediterranean Integration is launched today
Le Centre de Marseille pour l’Intégration en Méditerranée est inauguré aujourd’hui
Photos
Session on "Modelling Cities and Urban Dynamics" hosted by the EIB-University Action Programme
Projects
Video library
All videos
Podcasts
Open learning
Contact

EIB-financed mine project in Mozambique wins Corporate Social Responsibility and Socio-Economic awards

    •  Display in:
    • de
    • en
    • fr
  • Available in: de en fr
  •  Date: 20 January 2010

Extractive industry and mining projects are often complex and challenging. But they can also be prime ways of adding value to indigenous natural resources, increasing export revenues and generating fiscal income for the countries where they are located through royalties and corporate taxes.

In some countries, notably in the Africa, Caribbean and Pacific (ACP) regions, mineral resources represent the most significant means available for their economic development. Moreover, these projects can create permanent direct and indirect jobs and provide training that contributes to local skills. Nevertheless, the general public is usually unaware of these benefits, as well as of the socio-economic development of local communities often associated with such projects.

CSR awards

Within this context, the EIB has welcomed the announcement that one of the mining projects financed by the bank, the Moma Titanium minerals mine in northern Mozambique, has recently won two major Corporate Social Responsibility (CSR) and Socio-Economic awards.

In September 2009, Kenmare Resources plc, owners and operators of the Moma Titanium mine, won the President's Award for the best International CSR Programme from the Chambers of Commerce of Ireland, in association with the Irish Government Department of Community Affairs, for the Kenmare Moma Development Association (KMDA).

In October 2009, KMDA also won another prestigious award for its activities aimed at social and economic enhancement of the communities surrounding the mine. The Nedbank Socio-Economic Award was made by a panel of independent and expert adjudicators following an interview and three day site visit to examine the work of KMDA and meet with project beneficiaries. Nedbank particularly praised the fact that KMDA's development work began before mining commenced, that it has an overall strategic vision and a ‘bottom up' approach, as well as close partnerships with international and local Non-Governmental Organisations and Government bodies.

Community relations and development

Founded by Kenmare in 2004, KMDA's goal is to strengthen the socio-economic development of the communities in the vicinity of the Moma mine, a population of 10 000 people.  With the support of local and international partner institutions, KMDA has established small businesses in egg, broiler and vegetable farming generating revenue of USD 150 000 a year across six villages.

In addition, KMDA also set up a mobile health clinic with a visiting general practitioner and dentist, introduced projects on food security and HIV/health, built four new schools, set up a savings and credit scheme, installed water pumps and initiated a soccer league.  While there is a still a great deal of work to do, there is not a family in the area whose lives have not benefited in some way from KMDA's programme.

EIB support

The EIB financed the Moma Titanium project in 2004 and 2005 with loans totalling EUR 57 750 million; and this was one of the first projects to be financed under the then recently created EIB Investment Facility.

The Bank's mandate under the Cotonou Agreement, which governs EIB lending in the ACP,  clearly recognizes that mining plays an important role in achieving both the eradication of poverty and sustainable development goals as set out in the Preamble to the Cotonou Agreement.

Located on the coast of Nampula Province in northern Mozambique, some 160 km south of Nampula, the project financed by the EIB concerned the mining, concentration and separation of mineral sands containing ilmenite (main product), rutile and zircon (by-products), used primarily in the paint industry as titanium oxide pigments. The production and shipping of some 660 000 t/year of ilmenite, zircon and rutile is on a world scale in terms of the titanium industry.

When mine projects are synonymous with social development

Founded by Kenmare in 2004, Kenmare Moma Development Association's (KMDA) goal is to strengthen the socio-economic development of the communities in the vicinity of the Moma mine in Mozambique.  Five years ago, most of the population were subsistence farmers and fishermen living on less than USD 1 a day.  With the support of local and international partner institutions, KMDA has established, among other things, small businesses in egg, broiler and vegetable farming generating revenue of USD 150 000 a year across six villages. Regina Macuacua, Social Development Advisor for Kenmare, details the state of progress of these social projects.



A challenging project

The Bank was involved for quite some time in helping the main sponsor in different ways with this difficult project due in part to its remote location. Certain design elements of the project, for example the integration of the electricity component, follow suggestions made by the Bank. Without the Bank's proposed financial instruments, the promoter would have had difficulties raising enough equity and debt to complete an acceptable project finance plan, even more so under the conditions in world stock markets at the time. The Bank proposed a relatively large subordinated loan, without which other lenders would not have been supportive of the project and financial completion would have been difficult to achieve.

While Kenmare is aware that much further work is required to support the socio-economic development of the communities, the project will yield substantial benefits for the regional economy of the Nampula province and the Mozambican economy in general. The most important are the improvement of infrastructure (roads, power supply and airstrip) as well as wages and salaries paid out to locally recruited employees (including the usual indirect multiplier effects). Moreover, income from royalties of the mineral license and fees for using the free trade zone are contributing to the positive economic impact of the project.





 Print
 Short Link