IFC to support small mining companies in Africa with $300m

The International Finance Corporation (IFC), a member of the World Bank Group, has announced its intention to invest $300 million in junior mining companies operating in Africa over the next three years.

According to IFC’s Senior Investment Officer for Africa, Christian Mulamula, this equity investment will help small mining companies seeking finance for exploration projects and feasibility studies since mining is a major source of employment, revenue and skills transfer for countries across the continent.

“IFC is looking to support mid-tier mining companies by participating in project and corporate financing partnerships that will support mining development and expansion,” Mulamula told South Africa’s Mining Weekly on March 4, 2011 adding “the $300 million investment was reflective of IFC’s optimism in the African mining sector.”

According to Mining Weekly, IFC’s global mining portfolio spanned 37 countries, 17 of which were in Africa, totalling more than $400 million.

The IFC also recently invested in the Africa-focused New Africa Mining Fund II to help provide funding for junior mining companies.

By Ekow Quandzie