JOHANNESBURG (miningweekly.com) – The International Finance Corporation (IFC) has committed itself to providing $700 000 as its pro rata contribution to the 2010 exploration programme at its joint venture (JV) Tete project, in Mozambique, with Aim-listed Baobab Resources.

The IFC, which already held a 6,92% stake in Baobab, had acquired a 15% stake in the project in early 2009, by making an initial $400 000 investment in the Tete magnetite-ilmenite project.

At the time, the JV partners had agreed that the IFC would make yearly pro rata contributions to the development of the project, with the balance of the funding remaining the responsibility of Baobab.

“IFC’s second investment in the Tete JV demonstrates our continued support for a project with good fundamentals and a strong management team. We maintain high expectations for the jobs and economic growth this JV can generate in northern Mozambique,” IFC global head for mining William Bulmer said in a statement on Tuesday.

Baobab chairperson Jeremy Dowler added that the IFC was likely to become more involved in the project as its development continued, especially in terms of the facilitation of access to infrastructure such as port access, rail and electricity.

Baobab had reported in March that it planned to advance the project to feasibility stage this year.

The 632-km2 project, which contained two areas of magnetite-ilmenite mineralisation, had a maiden inferred resource of 47,7-million tons and an exploration target of between 400-million tons and 700-million tons at one of the prospecting areas.

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