[miningmx.com] – THE state-owned African Exploration & Mining Finance Company (AMEFC) did not have the financial means to expand, nor could it arrange debt finance, said BDLive citing the comments of the firm’s CEO, Sizwe Madondo.
“Lenders ask us to bring our equity, at least half of the project cost, and we don’t have that. We are also unable to go to Treasury, so basically we are on our own trying to raise finance for attractive projects,” said Madondo in parliament. “We have projects where we could crack ground on Wednesday if we had the money.”
The AEMFC was punted as an alternative means of increasing state ownership of the South African mining industry without resorting to nationalisation, said BDLive. With the exception of the Vlakfontein coal mine, which supplies Eskom, it has not yet managed to develop its other projects, predominantly in coal.
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