The International Finance Corporation (IFC), a member of the World Bank Group, announced a planned investment of C$5 million in Tsodilo Resources Ltd to help advance an exploration project of diamonds and base metals that is expected to provide jobs and government revenues to Botswana once a mine is developed.

According to an IFC statement, the investment will be used by Tsodilo, a Canadian-based diamond and base metals exploration company, to support the Ngamiland project in Northwest Botswana. IFC said it will also work with the company to ensure that exploration and any subsequent mine development is carried out in an environmentally and socially sustainable manner.

“IFC is our partner of choice and we welcome them as a major shareholder and partner in the Ngamiland projects in Botswana,” CEO James M. Bruchs said. “We look forward to drawing on IFC’s guidance and expertise to help ensure that the progress at Ngamiland follows globally recognized best practices for the mineral exploration industry, the environment, and for working with local communities.”

The mining sector dominates Botswana’s economy, with diamond mining contributing over 50% of the country’s tax revenues. The government of Botswana is intensifying its efforts to diversify the economy—including promoting non diamond mining activities. The investment will support the exploration of both diamonds and base metals, helping Botswana diversify its mining sector.

“Tsodilo shares IFC’s commitment to responsible mining exploration and engagement with local communities,” said William Bulmer, IFC Global Head for Mining. “This investment continues our strategy of supporting early stage exploration companies with financing and advice.”

IFC offers mining clients in developing countries a broad range of financial and advisory services throughout the mining life cycle. Through its early equity investment program, IFC assists exploration-stage companies such as Tsodilo with financing and advice on best-practice environmental and social management.