Response to ABC Newsline: "Ahafo controversy"

As announced in our media release of 30th August, Export Finance and Insurance Corporation (EFIC) confirms it provided a loan of $US15million to African Underground Mining Services Ltd (AUMS), a Ghanaian joint venture company, owned by two Australian companies. The purpose of the loan was to allow AUMS to purchase mining machinery manufactured in Australia for use in contract mining services provided to their clients in West Africa including the Newmont Ghana Gold Limited Ahafo Gold Mine.

EFIC assessed the application by AUMS against our commercial and credit criteria. That process included an evaluation of the application under our Environment Policy, which defines our commitment to environmental and social responsibility reflecting our international obligations under the OECD Common Approaches and the Equator Principles.

Our assessment included a review of company and project documentation on our client’s customer, Newmont Ghana Gold Limited and its Ahafo Gold Mine project. The project was assessed and funded by the commercial arm of the World Bank, the International Finance Corporation (IFC).  The IFC’s financing of the project is subject to the mine operator meeting stringent environment and social standards.  The IFC has ongoing monitoring and reporting in place, including assessments by independent consultants. Since the financing was approved by the IFC, the project has publicly reported on its management of environmental and social issues.  EFIC’s review provided adequate assurance that World Bank Group policies and guidelines were met.

EFIC has a clear, published process for the review and assessment of the environmental and social impacts of any transaction it considers.  Our provision of finance to AUMS, as a provider of services and equipment to the Ahafo Gold Mine, meets both our mandate to support Australian exports and our commitment to internationally recognised social and environmental standards.

EFIC’s Environment Policy