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RMB’s Kemp to head Pamodzi private equity Posted: Wed, 05 Sep 2007 [miningmx.com] -- PAMODZI Resources Fund I would invest $1.3bn (R9.4bn) in three years, including possibly in infrastructure to develop the coal-rich Waterberg in South Africa’s Limpopo province. Oil and gas projects, and projects in Zambia, the Congo and Namibia might also be targeted. “We’re not scared,” said Gerard Kemp, currently a resources banker at Rand Merchant Bank (RMB), who was today unveiled as the fund’s CEO. “I can’t say there’s a country where we won’t go. It just depends how many rifles there are at the time.” Kemp leads a five person team which also includes RMB colleague Piet Stoltz, former CEO of the South African Diamond Board, Victor Sibiya, Nontobeko Ntsinde, former head of corporate finance at the IDC, a government-owned bank, and Herman van Velze, currently head of life funds at Stanlib, a fund management firm. The team is rounded off with De Wet Schutte, currently CEO of Renova Group (South Africa), and formerly new business and exploration executive at Harmony Gold. “There is a pipeline of assets,” said Kemp who also joked that it might be a good idea to buy Harmony Gold, the R25bn gold mining firm. “Some approaches and discussions had already taken place,” he said of possible new business. Pamodzi Investment Holdings, which holds the Pamodzi Resources Fund I, said in August it would launch the country’s largest single resources fund. The 10-year term fund has been backed by Hans Mende, the joint founder of American Metals and Coal International Inc, one of the world's largest coal companies, and a shareholder in Pallinghurst Resources, Brian Gilbertson's newly created firm. “I’ve been in resources for up to 40 years in the US and Australia. The next five years will be a highly favourable for South African mining,” said Mende in an interview with Miningmx in August. "It's a place we have come to target.” In terms of the fund, a maximum investment of $325m (R2.34bn) will be allowed with Pamodzi preferring to take control of any investments it makes. However, Kemp raised the prospect of having other funds join Pamodzi in co-investing in certain projects. “We’re not jealous.” Arthur Matshiatshidi, who is chairman of the New Africa Mining Fund (NAMF), said were NAMF to launch a second fund it would be prepared to co-invest with Pamodzi. “Startups are also interesting to us,” said Kemp. “But we will also become involved in very large projects.” As part of potential infrastructural spend, Kemp said the Pamodzi Resources Fund may help fund building of new smelters. Click Here to subscribe to our daily newsletter
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