Washington DC, March 14th, 2007—
IFC, the private sector arm of the World Bank Group, and Newmont Mining’s
corporate foundation, the Asociación Los Andes de Cajamarca (ALAC), have
signed a cooperation agreement to cofinance a program to strengthen small
businesses near Newmont’s Minera Yanacocha investment in the Cajamarca
region of Peru.
The program will support local small businesses with training and advisory
services to link them to new contract opportunities. It includes
agribusiness development to help local small producers increase their productivity
and sales. It will also help ALAC build capacity to manage these and other
development activities in the region.
“We are very pleased to be partnering with ALAC in supporting the development
of small businesses in Cajamarca. We believe that businesses like these
are critical to job creation and economic growth for local communities,”
said Lars Thunell, head of IFC.
This program builds on previous activities financed by IFC and ALAC to
support development of Cajamarca’s private sector. Over 250 small
businesses have received direct support from earlier linkage activities,
which helped these businesses generate sales of over $10 million.
“ALAC will continue contributing to local development in Cajamarca long
after Minera Yanacocha ceases mining operations. ALAC is supporting
17 projects together with the local government, civil society, and private
businesses. These are strengthening local capacity to ensure long-term
sustainability. It is very important for us to have partners like
IFC participating in the development of these activities,” said Carlos
Santa Cruz, President of the Board of Directors of ALAC.
The new program is underway and has received financing from other local
stakeholders in addition to the IFC and ALAC contributions. It will
build upon the lessons learned from the previous work and expand the impact
to new businesses in Cajamarca. IFC has a 5 percent equity holding in Minera
Yanacocha, the leading gold producer in South America. Newmont Mining
holds 51.35 percent and is the operator, while Compañía de Minas Buenaventura
holds 43.65 percent.
Asociación los Andes de Cajamarca (ALAC) is a corporate entity founded
by the Peruvian mining firm Minera Yanacocha. ALAC supports Minera
Yanacocha’s responsible business practices through activities in the province
of Cajamarca that generate social and human capital. ALAC is committed
to building business and institutional capacities to improve the welfare
of local people. Its Board of Directors includes representatives
of Minera Yanacocha’s shareholders as well as community leaders. For
more information, please visit www.losandes.org.pe.
About Newmont Mining
Founded in 1921 and publicly traded on the NYSE since 1925, Newmont is
the largest gold company in the world. Headquartered in Denver, Colorado,
the company employs approximately 14,000 people, the majority of whom work
at Newmont's mines sites in the United States, Australia, Peru, Indonesia,
Canada, Uzbekistan, Bolivia, New Zealand and Mexico. For more information,
please visit www.newmont.com.
About IFC Linkages Programs
IFC’s linkages programs increase value-added services to IFC clients in
improving their businesses, while increasing the development impact of
IFC investments. Linkages programs are typically two- to three-year advisory
programs to strengthen small and medium enterprises that are linked to
IFC’s investment projects as suppliers of goods and services. The
focus is either on the client’s supply and value chain development or
on income- and employment-generating activities for local communities around
the investment project.
IFC, the private sector arm of the World
Bank Group, promotes open and competitive markets in developing countries.
IFC supports sustainable private sector companies and other partners in
generating productive jobs and delivering basic services, so that people
have opportunities to escape poverty and improve their lives. Through FY06,
IFC Financial Products have committed more than $56 billion in funding
for private sector investments and mobilized an additional $25 billion
in syndications for 3,531 companies in 140 developing countries. IFC Advisory
Services and donor partners have provided more than $1 billion in program
support to build small enterprises, to accelerate private participation
in infrastructure, to improve the business enabling environment, to increase
access to finance, and to strengthen environmental and social sustainability.
For more information, please visit www.ifc.org.