Challenges round improvement and finance imply that solely a fraction of over US$700 billion of potential Nigerian mining initiatives receives the required funding, based on SMDF
Africa Finance Company (AFC) (www.AfricAFC.org), the continent’s main infrastructure options supplier, and the Strong Minerals Growth Fund (SMDF) are partnering to deploy venture improvement funding and technical advisory to quick observe closure and operations of business scale mining initiatives in Nigeria. This following AFCs flagship funding within the first business scale gold mining venture in Nigeria, the Segilola Gold Mine in Osun State, via an modern financing package deal comprised of debt, fairness and a stream.
Challenges round improvement and finance imply that solely a fraction of over US$700 billion of potential Nigerian mining initiatives receives the required funding, based on SMDF. Beneath the Memorandum of Understanding (MoU) and leveraging AFCs venture improvement experience, AFC and SMDF will co-develop mining initiatives to mitigate dangers that will in any other case have prevented financing to drive bankability. This intervention will create a pipeline of high-quality and possible initiatives with appreciable financial influence and scope for AFC and SMDF to deploy their stability sheets.
Since 2014, AFC has deployed US$900+million from its stability sheet and mobilized US$250 million in Mining Tasks throughout Africa in a number of minerals crucial for the power transition, together with bauxite, manganese and copper. As such, the alliance will focus totally on treasured metals and minerals crucial to the worldwide power transition. AFC and SMDF will mix their very own funds with modern funding instruments to scale back dangers round exploration, drilling, affirmation of deposits, and third-party improvement prices, together with technical and environmental research, venture structuring, and venture contract negotiations. Solely initiatives which have accomplished phases of pre-feasibility research and secured all related authorities and regulatory permits are eligible for consideration. The partnership aligns with AFC’s mission to foster industrial improvement, unlock worth from pure sources, and catalyze vital long-term progress and diversification alternatives. It additionally advances SMDF’s 2025 Technique to construct funding partnerships that may spur non-public sector-led funding within the mining sector and place Nigeria as a number one rising mining vacation spot.
“AFC is a premier investor in Nigeria’s mining sector, a top priority for the Federal Government to attract Foreign Direct Investment and drive diversification of the economy. This partnership with the SMDF will enable the Corporation to continue to drive the closure of bankable mining projects that are critical to Africa’s economic diversification efforts, value addition and the energy transition” mentioned Sameh Shenouda, Government Director and Chief Funding Officer, Africa Finance Company. “We are delighted to work with an institution of such high repute, particularly one in our host country, Nigeria.”
Fatima Umaru Shinkafi, Government Secretary and CEO of Strong Minerals Growth Fund, mentioned: “We are pleased to sign this agreement with the Africa Finance Corporation today, signifying AFC’s commitment to driving sustainable economic growth through economic diversification and industrialization. This agreement is a significant step for SMDF as we develop the mining sector in Nigeria and position the country as a stable and low-cost supplier of critical minerals. Africa Finance Corporation led the financing of the only commercial mine in Nigeria so, naturally, we see a key opportunity to combine AFC’s investment track record with the SMDF’s technical talent, intellectual capital, and deep sector knowledge and expertise on growth-oriented projects, where our collaboration can help create value.”
Distributed by APO Group on behalf of Africa Finance Company (AFC).
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