Omsukchansk Mining & Geological Company

MIGA provided $2.2 million of coverage to New Arian Resources Corporation (Arian), a subsidiary of Bema Gold Corporation of Canada, for its investment in the development and operation of Omsukchansk Mining & Geological Company (OMGC), a mining and milling plant in Russia. A guarantee also was issued under MIGA's CUP with Standard Bank of London Limited of the United Kingdom for an amount of $25 million, $14.9 million of which are assumed by MIGA. MIGA's guarantees will cover the investment against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project is the underground mining and processing of gold and silver dores in the province of Magadan. It will operate under a 25-year license awarded to OMGC in 1991 by the province to explore and mine metal deposits. The project is expected to have a production capacity of more than 100,000 tons of ore annually over the mine's nine-year life, producing an average of approximately 100,000 gold equivalent ounces per year.

It is anticipated that OMGC will procure approximately 40 percent of goods and services locally, pay $6 million in annual taxes, create some 250 new jobs, and contribute to the improvement of the infrastructure in the region. Roads from Omsukchansk to Magadan to the mine site are expected to be extended and upgraded, while area bridges will be reinforced to accommodate larger loads.