SOUTH Africa’s Public Investment Corporation (PIC) on Wednesday unveiled plans to invest R1.35bn in “early stage” mining of which at least half would be in South Africa.
The state-owned pensions fund said it would target projects that had already been scoped and fund them until they could attract bank finance. This support would be through indirect investments such as private equity, venture capital and specialist mining funds, as well as joint ventures and partnerships.
The announcement comes at an interesting time for the mining industry in South Africa. Industry and Government are at loggerheads over proposed amendments to minerals legislation. In contrast to this, Government is expected to soon roll out a new digital mining licensing system that opens the door on improved business conditions for exploration.
South Africa will also host the G20 Leaders’ Summit in Johannesburg next month, marking the first time the G20 summit is held on the African continent.
At the summit, South Africa is expected to provide more details on its recently published critical minerals strategy which, controversially, includes coal as well as manganese and platinum group metals.
The PIC said in a statement the balance of the projects would be allocated to the rest of Africa. Targeted commodities include copper and cobalt, nickel, lithium and manganese.
Investments of up to R400m and as little as R100m would be taken out in terms of the allocation. Preference would be given to historically disadvantaged South Africans, the corporation said.
