San Antonio, Texas: The North American Development Bank (NADB), the Mexican Mining Development Trust (FIFOMI) and the steel mill subsidiary, Minera del Norte, S.A. de C.V. (MINOSA), today signed a US$25 million loan agreement for the installation of an emission control system that will capture 97% of the particulate matter released into the atmosphere by secondary production activities in the steel mill facilities of Altos Hornos de México (AHMSA) located in Monclova, Coahuila.

NADB Managing Director Gerónimo Gutiérrez, FIFOMI Director Armando Pérez Gea and MINOSA Director of Operations, Arturo Arroyo, signed the seven-year loan agreement, which will permit the company to install and operate the emission control system with a collection capacity of up to 29,333 m3/min. of total suspended particles (TSP) for a total of 30,070 tons a year, which is equivalent to burning about 5.5 million tons of coal for power production.

“This loan, the first that NADB is providing for a project of this kind in Mexico, will set a precedent for other large industries to take actions to combat air pollution in the border region,” stated Mr Gutiérrez. “NADB is proud to participate in this initiative, which will improve air quality within AHMSA’s facilities and surrounding areas.”

The project received the certification of the Border Environment Cooperation Commission (BECC) in August 2015. Construction is expected to begin in June 2016 and take about 18 months to complete.

“Altos Hornos de México recognizes the importance of this financial transaction as an investment that reinforces its commitment to develop environmentally-friendly industrial operations in compliance with Mexico’s environmental standards and regulations,” stated AHMSA General Manager Luis Zamudio Miechielsen.

For his part, Dr. Pérez Gea noted that FIFOMI’s participation in this project is a sign of its commitment to the environment, thus fulfilling its 2014-2018 Strategic Plan, since this will support respect for environmental regulations and promote a cleaner industrial environment and practices. “This project, which we are financing jointly with NADB, is the first of several that we intend to work on together in the mining industry, in order to promote a better environment along Mexico’s northern border.”