Financing for important mining project in Bolivia.

(March 24, 1992).- Contributing to its member countries’ policy of promoting foreign investment and stimulating the private sector, CAF today granted a US$20 million loan to Empresa Minera Inti Raymi SA (IRSA) to develop the Kori Kollo gold and silver mining project located near the city of Oruro.

The loan operation was approved by the 73rd meeting of the CAF Board held in Caracas on March 23 and 24. The meeting was chaired by Ecuadorian Minister of Industry, Commerce, Integration and Fisheries Juan Falconi, elected as chairman of the Board and the Shareholders meetings for a one year term.

At subregional level, since the start of its operations, CAF has approved operations for Bolivia totaling US$2,123,000, not including foreign trade operations.

The project The objective of the project is to develop open cast mining of sulfide gold and silver.

The existing oxide lixiviation plant processes 4,000 metric tons per day and plans to raise this figure to 14,000 tons, by installing an oxide and sulfur processing plant based on activated carbon.

The incorporation of this new mineral extraction and processing technology will not only increase the existing supply of gold and silver oxides for treatment by significantly increasing production, but also make possible access to sulfur veins at present not exploited.

The total cost of the project which is estimated at US$165 million will be financed with funds from company cash flow and loans from CAF, OPIC and the International Financial Corporation. The CAF loan will be used for acquisition of imported machinery and equipment, including engineering services, materials, freight and insurance.

Inti Raymi is a joint venture formed by local and US capital, currently in the process of expansion to attract local and foreign private investors.