SAMARCO MINERACAO S.A. SUMMARY OF PROJECT INFORMATION (SPI)         Project Name    Brazil - Samarco Mineracao S.A. (Samarco)   The project comprises the environmental and hydro power components of Samarcos ongoing investment program.      RegionLatin America and the Caribbean   SectorMining and Extraction of Metals and Other Ores   Project No005036   Projected Board   DateDecember 12, 1996   Company NameSamarco Mineracao S.A. (Samarco)   Technical Partner and/or Major Shareholders    	Samarcos shareholders are:  S.A. Mineracao da Trinidade - Samitri, 51%; and BHP Brazil, a 100%-owned subsidiary of Broken Hill Proprietary Company Ltd., 49%.    Project Cost Including proposed IFC investment    	The total cost of Samarcos investment program is estimated at over US$300 million, of which the IFC-financed components will total US$44.8 million.  The proposed IFC investment comprises a senior loan of US$18-23 million for IFCs own account and a senior loan of up to US$16 million for the account of participant commercial banks for a total investment of up to US$34 million.    Location of project and Description of site    	States of Minas Gerais and Espirito Santo.    Description of Company and Purpose of Project    	Samarco is an iron ore mining company with mines near Ouro Preto in Minas Gerais and a pelletizing plant and port (Ponta Ubu) near Guarapari in Espirito Santo.  Samarco is currently implementing an investment program, including an expansion project that will more than double its pelletizing capacity.  IFC is considering an investment in the environmental and hydro power components of this investment program.  The proposed IFC investment will help finance: (i) the installation of electrostatic precipitators at Samarcos existing pelletizing line; and (ii) a 25 MW small hydroelectric plant near the town of Muniz Freire in Espirito Santo.    Environmental Category and Issues    	This is a category A project according to IFCs environmental review procedures.  The sponsor prepared a full and detailed environmental assessment (EA) of the entire investment program, including the pelletizing expansion and the Muniz Freire hydroelectric plant.  Public consultation and disclosure was also undertaken.  As part of its review, IFC carried out a due diligence compliance audit of mining and process operations.  Environmental issues such as particulate emissions, liquid effluents, occupational health and safety, land use, water resources and habitat modification along about 1 km of river, resettlement of three households and compensation for loss of agricultural land were all properly addressed.  All steps taken were in accordance with state and national regulations, and consistent with World Bank policy.    The Environmental Assessment and EA Executive Summary have been available from the Public Information Center since July 25, 1996.       Host country location of   environmental documents    SEDESU - Secretaria de Estado de Desenvolvimento Sustentavel, Avenida Princesa Isabel, 629-6o Andar, 29010-914 - Vitoria, Espirito Santo, Brazil.      Date SPI sent to PIC	November 12, 1996    For Additional Information contact:     Corporate Relations Unit    Telephone:  (202) 473-3800   Fax:  (202) 676-0365  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).