Minera Yanacocha, S.A.

MIGA issued its first guarantees in Peru, a total of $6.4 million to Compagnie Minière Internationale Or, S.A. of France and $7.8 million to Newmont Second Capital Corporation of the United States, against the risks of expropriation and war and civil disturbance. MIGA also provided the Union Bank of Switzerland with $19 million in guarantees for its loan to the project, against the same risks.

The $45 million investment, the first foreign investment in Peru in 20 years, will finance the construction and operation of a gold mine in the highlands of northern Peru. The project enterprise, Minera Yanacocha S.A., will become the second largest gold producer in Peru.

The project intends to introduce new heap-leaching technology, and its successful implementation could lead to Other new mining investments by the international mining community. The project is expected to yield about $34.1 million annually in exports and $19 million in revenues to the Peruvian government.