Baobab Resources’ Tete joint venture (JV) partner IFC, a member of the World Bank Group, has committed to supporting the ongoing definitive feasibility study (DFS) work program through a pro rata contribution of about US$1 million. Baobab is wholly focused in Mozambique where it is developing a pig iron and ferro-vanadium project in the Tete province, one of Africa’s fastest growing mining centres.

Baobab’s chairman Jeremy Dowler says, “Baobab is very pleased to announce the continued support of our partner IFC. The JV partnership is now well into its fifth year, during which time IFC has contributed approximately US$5 million and the project has transitioned from an undrilled, greenfields concept to an advanced asset with 510 million tonnes inferred and 217 million tonnes indicated JORC-compliant resource.

“The project has become one of national and regional significance with preliminary feasibility studies underlining a compelling commercial case for development. Looking forward, we will be working alongside IFC in the facilitation of access to port, rail and power infrastructure as well as the development of comprehensive stakeholder engagement, community development and environmental management programs.”

IFC (International Finance Corporation) creates opportunity for people to escape poverty and improve their lives. It fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC has a long and respected history of promoting sustainable mining in developing countries and is highly regarded as a long-term partner in mining development projects.

IFC participated in a placing in November 2008 and is currently Baobab’s second largest single shareholder with an interest of 3.7%. In January 2009, IFC acquired a 15% participatory interest in the Tete pig iron and ferro-vanadium project. IFC has committed to ongoing pro-rata contributions to development of the Tete project with Baobab funding the remaining portion and remaining as project operator.