Nedbank finalises rehab fund for mine trust

I-Net Bridge | Tue, 02 Feb 2010 17:29
[miningmx.com] -- Nedbank Capital recently strengthened its reputation as one of South Africa's leading mining financial services providers with the finalisation of a comprehensive solution for Rand Uranium's Cooke Rehabilitation Trust.

The multi-million rand Rehabilitation Fund solution, designed and developed by Nedbank Capital, provides Rand Uranium with a fully inclusive, end-to-end means of meeting its mining rehabilitation liabilities, while remaining compliant with South African mining and tax regulations.

The deal serves to re-emphasise Nedbank Capital's position as one of the country's leading mining financial services providers, and crowns more than eight years' of experience and innovation that has seen over R2.4bn of rehab fund inflows into the customised Nedbank Capital offering.

"As a relatively young uranium mining company with considerable future plans, Rand Uranium had very specific requirements of its Rehabilitation Fund," Dave King, CFO of Rand Uranium explains, "and thanks to the professionalism, experience and diverse skill set of the Nedbank Capital team that worked on our solution, we were able to meet all those requirements under one roof, in a short space of time, and in a way that allowed us to remain focused on our core business activities while Nedbank Capital saw to the finer details."

According to Peter Van Kerckhoven, joint-head of Mining and Resources at Nedbank Capital, our ability to offer a one-stop all encompassing Rehabilitation Fund solution has underpinned the business' success in this area. In fact the real attraction of the Rand Uranium solution, and indeed all of Nedbank Capital's Rehabilitation Fund offerings, lies in the provision of tailored rehabilitation trust fund investment management coupled with the provision of Department of Mineral Resources guarantees.

"The true beauty of the rehabilitation solutions created by Nedbank Capital is not so much that they minimise the cost of guarantees," he emphasises, "but rather they do so in a way that reduces the impact on the mining companies' ability to raise other forms of finance in the future."

The completion of the Rand Uranium solution by Nedbank Capital also highlights the importance of values alignment in successful business partnerships. As a mining house with a clear commitment to its land rehabilitation responsibilities, Rand Uranium is a very good fit with South Africa's 'green' bank and its stated commitment to funding projects and companies that demonstrate strong environmental values and ethics.

It is imperative for companies to commit to mitigating the effect they have on the planet," concludes Van Kerckhoven, "and proactive rehabilitation is increasingly being recognised as the key to achieving this, rather than just a legislative obligation.

"At Nedbank Capital we welcome this shift in focus, and our Rehabilitation Fund solutions mirror our own commitment to working closely with our clients as they do their part for the environment."