Africo Resources Limited The proposed investment is the acquisition of up to C$8 million in shares in Africo Resources Limited (ARL), a company listed on Toronto Stock Exchange (TSX), and sponsor of the Kalukundi Cobalt-Copper Project. The project is currently at the feasibility study phase with on-going exploration activities to convert resources to reserves, on-going feasibility study work, and the up-grading of the environmental and social impact assessments to international standards.  The feasibility study covers the potential construction of a green-field open pit mining operation with a mining rate of approximately 800,000 tonnes per annum (tpa) and cobalt-copper solvent extraction and electro-winning (SX-EW) plant to produce approximately 3,800 tpa of cobalt and 16,400 tpa copper over an initial 10 year mine life.  The project is secured under an Exploitation or Mining License, issued under the DRC Mining Code of 2003. The proposed IFC investment will contribute to on-going exploration activities to convert resources to reserves, on-going feasibility study work, and the up-grading of the environmental and social impact assessments to international standards for the Kalukundi Project.  Consequently, it is not possible to fully quantify the expected developmental impacts of the project.  Based on the current feasibility study work conducted to-date the expected development impacts of the during the operational phase may include:    - Contribution to Local Economy     The project is expected to generate the following economic benefits over the mine life: total payments to Government (taxes and royalties) of approximately $200 million; Gécamines dividends of approximately $125 million; payments to suppliers and employees of $800 million. These estimates have been based on long-term cobalt and copper price forecasts.    - Community Development      ARL is taking a proactive approach to maximizing the positive benefits of the project during the operational phase to its host community including: current budget of approximately $2.5 million for construction and social development programs in the relocated Kisankala village.  The company, with the assistance of IFC, plans to leverage additional funds through partnership with aid agencies to establish an integrated community development program (ICDP) which will incorporate:  - education initiatives to increase child enrolment above the current level of 6% in addition to a women adult literacy programme;  - health initiatives focusing on HIV/AIDS, malaria and maternal care;  - establish a linkages and supply chain development program incorporating agricultural extension services, construction activities like brick laying etc.   - Demonstration Effect on Environmental and Social Standards      IFCs assistance to Africo on environmental and social issues relating to the potential development of the Kalukundi Project should have a positive demonstration effect in the copper-cobalt sector in the Katanga province in the DRC. This investment together with IFCs portfolio investment in First Quantums Kolwezi Tailings Project, also in the Katanga province, places IFC in an opportune position to make a positive impact on some of the earlier projects being launched in the Katanga province.      - Direct and Indirect Employment opportunities for Local Community      Project is expected to employ 540 jobs of which approx. 80% will be Congolese nationals. Should the project move to the development phase, Africo will commit to a training program over the life of mine to develop skills within the local populations that will enable them to qualify for employment at the mine.  Future initiatives will focus on assisting the community to establish business and activities not fully dependent on the mining sector.