Sunday, February 23, 2025
23.8 C
Lagos

AFC Partners Solid Minerals Dev Fund on Private Sector-Led Mining Projects in Nigeria

 

 
Africa Finance Corporation (AFC), the continent’s leading infrastructure solutions provider, and the Solid Minerals Development Fund (SMDF) are partnering to deploy project development funding and technical advisory to fast-track closure and operations of commercial scale mining projects in Nigeria. This follows AFC’s flagship investment in the first commercial scale gold mining project in Nigeria, the Segilola Gold Mine in Osun State, through an innovative financing package comprised of debt, equity and a stream.
Challenges around development and finance mean that only a fraction of over $700 billion of potential Nigerian mining projects receives the necessary funding, according to SMDF.

Under the Memorandum of Understanding (MoU) and leveraging AFCs project development expertise, AFC and SMDF will co-develop mining projects to mitigate risks that would otherwise have prevented financing to drive bankability. This intervention will create a pipeline of high-quality and feasible projects with considerable economic impact and scope for AFC and SMDF to deploy their balance sheets.
Since 2014, AFC has deployed $900+million from its balance sheet and mobilized US$250 million in Mining Projects across Africa in several minerals critical for the energy transition, including bauxite, manganese and copper.

As such, the alliance will focus primarily on precious metals and minerals critical to the global energy transition. AFC and SMDF will combine their own funds with innovative investment tools to reduce risks around exploration, drilling, confirmation of deposits, and third-party development costs, including technical and environmental studies, project structuring, and project contract negotiations. Only projects that have completed phases of pre-feasibility studies and secured all relevant government and regulatory permits are eligible for consideration.

The partnership aligns with AFC’s mission to foster industrial development, unlock value from natural resources, and catalyze significant long-term growth and diversification opportunities. It also advances SMDF’s 2025 Strategy to build investment partnerships that will spur private sector-led investment in the mining sector and position Nigeria as a leading emerging mining destination.
“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” said Sameh Shenouda, Executive Director and Chief Investment Officer, Africa Finance Corporation.

“We are delighted to work with an institution of such high repute, particularly one in our host country, Nigeria.”
Fatima Umaru Shinkafi, Executive Secretary and CEO of Solid Minerals Development Fund, said: 

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 industrialisation. 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.”

 

 

 

 

 

 

 
 
 
spot_img
spot_img
spot_img

Hot this week

LASAA Addresses Community Concerns over Billboard Safety at Abati Barrack

The Lagos State Signage and Advertisement Agency (LASAA) is...

AIICO Celebrates Outstanding Agency Field Force at 2025 Annual Awards Night

Left - Right: Mr. Adewale Kadri (Executive Director, Technical),...

Is the CBN Pushing Nigerians Back into the Banking Halls? 

By Elvis Eromosele  Public institutions in Nigeria have a knack...

Fidelity Bank Enhances Educational Facilities in Benin, Abuja

Fidelity Bank Plc, a leading financial institution, has once...

NCDMB Chief Visits Samsung, Africoat, Insists on Patronage of Local Facilities

The Executive Secretary, Nigerian Content Development and Monitoring Board...

Topics

Abbey Mortgage Bank Names Mobolaji Adewumi as Acting MD

In the wake of her 30th Anniversary, Abbey Mortgage...

Technology Increasingly Shaping Africa’s Financial Sector

The African financial services industry is rapidly evolving as a result of advancing technology which is fueling innovation and growth in the sector. While the sector is mature in most developed countries, it is less saturated in Africa, therefore offering many opportunities for new market entrants to challenge the status quo of how business has traditionally been conducted.

Transcorp Power: N142bn Revenue, N52.8bn PBT, Declares N23.46bn Dividend

From L-R: Dr. Owen D. Omogiafo, Non-Executive Director; Peter...

FG Commends Indorama on Cheap Fertilizers for Farmers

The Presidential Committee on Fertilizer Initiative (PCFI) has expressed...

Great Nigeria Insurance Reports N5bn Annuity Growth in Qtr 1, 2021

Mrs. Cecilia O. Osipitan Managing Director/CEO, Great Nigeria Insurance Plc Great...

QG Africa Acquires InterContinental Hotel in Lusaka

QG Africa Hotel LP, a Mauritius-based fund managed by...

Unity Bank, ProvidusBank Announce Merger Approval from CBN

We are pleased to announce that the Central Bank...
spot_img

Related Articles

Popular Categories

spot_imgspot_img