MOZAL S.A.R.L.

MIGA issued a $40 million guarantee in its first project in Mozambique to cover the Industrial Development Corporation of South Africa Limited's investment in an aluminum smelter project. The guarantee covers the investment against the risks of expropriation and war and civil disturbance.

Located near the capital city of Maputo, the project is one of the largest foreign investments in the country. The project involves the construction and operation of a potline smelter to produce aluminum ingots for export.

The project will offer an estimated 800 workers employment and workers will receive training for assembly line operations and maintenance in aluminum production at the Hillside smelter in Richards Bay, South Africa. They will also receive extensive benefits, including modern housing.

Moreover, the project is expected to triple the export earnings of the country and add more than 5 percent to its GDP in the initial years of operation. The project will also spur the development ofin the surrounding area through the construction of roads, upgrading of port facilities, an increase in electric power generation, and the building of water supply, sewerage, and drainage systems.