In an interview with Mining Weekly Neil Gardyne, Director of the Second New Africa Mining Fund (NAMF II) commented that it expects to make its first investment in the next two to three months. The $120m venture-capital fund invests mainly in early stage exploration and development projects in all commodities except uranium and diamonds; and it is currently reviewing opportunities in gold, copper, iron-ore, coal, chrome and manganese. NAMF II’s backers include the World Bank’s International Finance Corporation, the Development Bank of Southern Africa, the African Development Bank, the German DEG, the Dutch FMO, the Swiss Investment Fund for Emerging Markets and BHP Billiton South Africa, which also backed the first fund.
Typically, NAMF II will buy stakes of 30%, 40% or more in early stage projects, take those projects up the value curve and then on sell them to established mining companies. While NAMF II will concentrate on the early stage, high-risk projects, its mandate does not exclude investments in later-stage projects, for example, through the funding of final feasibility studies or the advancing of suitable projects that are at near-development stage.
Although its mandate allows it to go anywhere in Africa, NAMF II will be placing even greater emphasis on environmental, social and governance (ESG) issues than was the case with NAMF I.
The New Africa Mining Fund (NAMF): http://www.newafricaminingfund.co.za/index.htm
Mining Weekly: http://www.miningweekly.com/page/australasia-home –