Governments set for more private equity minerals deals

GOVERNMENTS will increasingly forge partnerships with private investors to secure supplies of critical minerals, according to a mining-focused investment firm that has sealed a $1bn agreement with the World Bank’s International Finance Corporation.Michael Scherb, CEO of Appian Capital Advisory, which manages approximately $5bn in assets, told the Financial Times his firm has held discussions with numerous countries seeking access to vital commodities required for advanced manufacturing.“Governments are struggling to get security of supply” as they attempt to guarantee long-term availability of rare earth elements and important metals such as nickel, said Scherb.“We’re in discussions with many governments about Appian being their avenue into the natural resources space,” he told the newspaper. “You’re going to see a lot more international investing by governments and more public-private partnerships similar to what we’ve done,” he added.The IFC will invest in critical minerals and metals projects across emerging markets, with an initial $100m contribution and the remainder raised from sovereign investors, pension funds and endowments. Appian will manage the investments.The capital-intensive mining industry has often struggled to attract large-scale, longer-term funding due to protracted lead times and high risks associated with new projects.However, policymakers in the US and Europe are racing to counter China’s dominant position in critical minerals. The US government has made equity investments in several mining companies and held talks with private equity firm Orion Resource Partners about a multibillion-dollar overseas mining fund.Makhtar Diop, managing director of the IFC, said partnering with companies like Appian would help bring more private capital to places needing it most.The post Governments set for more private equity minerals deals appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com