Minera Cerro Colorado Ltda.

In fiscal 1991 MIGA issued a $5 million political risk guarantee to Rio Algom Ltd. of Canada for its investment in the Cerro Colorado Copper Mine in Chile. This year MIGA increased its participation in the project through a $22.5 million reinsurance contract with the Overseas Private Investment Corporation (OPIC) covering a syndication of U.S. and European banks lending to the project. MIGA will provide coverage against the risks of currency transfer, expropriation, and war and civil disturbance for fifteen years.