Emerging Africa Infrastructure Fund

Description:

The developers of this titanium mineral sands project approached EAIF as a ‘lender of last resort’.  Located in one of the most under-developed regions of Mozambique, the US$ 413 million project is expected to be the second lowest cost producer of titanium in the world, which will be converted to titanium dioxide for use in the paint and ceramics industries. EAIF committed US$ 24.5 million of senior and subordinated debt (total debt package of US$270 million) in October 2004.  To date, US$ 20.24 million of this amount has been disbursed. The project received deal of year awards from both the Mining Journal and Project Finance International publications.  The project will bring important social benefits to the area through significant training to the local population and is expected to employ 1,000 people during the construction phase, and a further 425 during mining operations.