Mining company African Rainbow Minerals (https://apo-opa.co/46M4tND) reached an agreement last September with financial services company Absa – along with finance institutions Standard Bank, the Development Bank of South Africa and Nedbank – to provide finance for the construction of a 132 MW solar project. The move is set to provide renewable energy to platinum mining projects in South Africa through power purchase agreements (PPAs).
To support the growth of South Africa and Africa’s critical mineral industry, Absa is participating in this year’s Critical Minerals Africa (CMA) 2024 summit. Shirley Webber, Coverage Head of Resources & Energy at Absa Corporate and Investment Banking – an Absa subsidiary –, will discuss the firm’s contributions and investment strategy in the African critical mineral sector.
The Critical Minerals Africa 2024 summit on November 6-7 serves to position Africa as the primary investment destination for critical minerals. The event is held alongside the African Energy Week: Invest in African Energy 2024 conference on November 4-8, offering delegates access to the full scope of energy, mining and finance leaders in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting sales@energycapitalpower.com.
Absa is a major player in Africa’s critical mineral industry, providing direct financing to project developers, while supporting critical mineral mining projects through long-term PPAs. The institution is arranging a $120 million debt facility to support platinum group metal (PGM) mining firm Pensana’s (https://apo-opa.co/4fTeBZo) strategy to achieve first PGM production in South Africa by 2025. Absa also partnered with French financial services firm Société Générale in March 2023 to raise $130 million in funding to support PGM and chrome-producer Tharisa (https://apo-opa.co/46HEd76) with its mining operations in South Africa.
Absa has positioned itself as a key driver of environmental social governance (ESG) and skills and capacity building within Africa’s critical mineral sector as the global mining industry prioritizes environmental sustainability and local content development. In May 2023, Absa closed a $562.4 million sustainability-linked green bond for mining firm Harmony Gold, enabling the company to expand production and reduce its carbon footprint at its gold and copper projects across Africa. As such, Webber is expected to use the CMA 2024 platform to highlight how Absa is driving ESG projects across Africa’s critical mineral sector.
“Companies like Absa have positioned themselves as key enablers of Africa’s critical mineral industry growth by simplifying access to capital for project developers. As demand for Africa’s energy transition metals grows and global markets prioritize environmental sustainability, the capital and ESG expertise provided by Absa will be crucial,” stated Rachelle Kasongo, Project Director at CMA 2024 organizer Energy Capital & Power.
Distributed by APO Group on behalf of Energy Capital & Power.
