Africa Finance Corporation (AFC) unveils strategic partnerships to boost Africa’s mining sector

Africa Finance Corporation (AFC), the continent’s main instrumental infrastructure answers company, has announced numerous strategic partnerships at the sidelines of the recently concluded 2024 Mining Indaba convention in Cape Town, to boost Africa’s mining area, ushering the continent into a brand new era of growth and prosperity.

Africa Finance Corporation

Since 2014, AFC has invested over US$1billion in Africa’s mining of treasured metals and important minerals across numerous nations, and the brand new partnerships will further enhance the arena with the aid of driving widespread capital circulate the continent.

Gécamines

AFC signed an expression of hobby (EOI) with Gécamines, the most important mining employer in the Democratic Republic of Congo, to develop sure property inside the mining quarter in DRC, together with important minerals. The collaboration will even focus on numerous tasks for close to-time period co-financing of mining and infrastructure related projects for execution through the give up of Q2 2024.

FG Gold

AFC introduced the successful closure of a US$55 million mezzanine debt facility for FG Gold Limited, facilitating graduation of construction for the Baomahun Gold Project in Sierra Leone. The undertaking represents a big milestone as it’s far poised to grow to be Sierra Leone’s inaugural huge-scale industrial gold mine. Upon crowning glory, it is projected to make contributions approximately 10% to Sierra Leone’s GDP and generate 900 direct and oblique process possibilities inside the usa.

This financing builds upon AFC’s previous investment of US$45 million in 2022, which played a pivotal function within the extensive development of the task, culminating within the final touch of its definitive feasibility study.

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Thor Explorations Ltd.

Last yr, Thor Explorations Ltd., through its absolutely owned subsidiary Newstar Minerals Ltd, acquired rights to explore over 600 square kilometers in Nigeria’s West Oyo, Kwara, and Ekiti lithium venture areas, highlighting the West Oyo web page as domestic to the country’s maximum full-size lithium pegmatite occurrences. AFC has signed an EOI with Thor Exploration for the development of this venture, marking the Corporation’s dedication to helping the status quo of Nigeria’s first massive-scale lithium mine. This initiative plays a pivotal role in advancing global strength transition targets, solidifying Nigeria’s position as a key enabler of renewable power. AFC is the most important investor in Thor Explorations, making an investment US$86 million closer to the Segilola Gold Mine, Nigeria’s first business scale gold mine.

Giyani Metals

AFC signed an EOI with Giyani Metals for the financing of a high purity manganese (HPM) mine and plant in Botswana – a unprecedented undertaking in Africa. HPM is a critical mineral for batteries utilized by electric motors and is principal to the overall transition towards a more environmentally pleasant international economy. In addition to task advent, Botswana will gain through diversification in an economy that has in large part been depending on income from diamond exports.

Nyanza Light Metals

AFC introduced the launch of the syndication procedure and carried out the senior debt time period sheet for Nyanza’s 80,000 tonnes consistent with annum (TPA) TiO2 pigment plant in Richard’s Bay Industrial Development Zone. Valued at US$780 million, this sulphate based totally TiO2 pigment plant will stand because the first and most effective one of its type in Africa. The launching of the syndication technique follows the a success of entirety of the project improvement degree, which AFC co-financed with a US$3 million Project Development Facility.

The plant is strategically positioned to feature price to the area’s ample titanium ore, historically exported with none price addition. AFC serves as a co-developer and co-Mandated Lead Arranger (MLA) along Afreximbank, underlining the Corporation’s commitment to boost transformative projects in the location.

Wood Mackenzie Study

In October 2023, AFC and Solid Mineral Development Fund (SMDF) commissioned Wood Mackenzie to conduct a complete observe to assess the feasibility of establishing a midstream processing plant in Nigeria. Wood Mackenzie’s look at targeted at the viability of processing some of vital minerals consisting of lithium, cobalt, and manganese. The insight and final results of the examine, revealed on the Mining Indaba in Cape Town, showed that organising a processing plant in Nigeria will considerably bolster the usa’s FX era ability through full-size annual alternate volumes and create thousands of nearby jobs.

Speaking at the signing, AFC’s Chief Investment Officer Sameh Shenouda said: “While over 30% of the world’s minerals are in Africa, much less than five% of world development investment is invested in African mining projects. Recognizing the tremendous funding hole in the African mining area, AFC is dedicated to pragmatic answers and helping the sector’s boom, having invested about $1 billion throughout metals and critical minerals in numerous African countries. Through those sturdy partnerships with like-minded stakeholders, our intention is to open up new markets, sell a greener economic system, and make contributions to the general development of African countries.”

One Comment

  1. With AFC’s strategic partnerships aiming to boost Africa’s mining sector, how do these initiatives align with broader economic development goals across the continent, particularly in terms of job creation, economic diversification, and sustainable resource management?

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