JOHANNESBURG (miningweekly.com) - Nedbank Capital has achieved a ranking of fourth out of all the major mining project finance lead arrangers for the year, a recent report by Ernst & Young showed.

The report, entitled ‘2009: the year of survival and revival - mergers, acquisitions and capital raising in the mining and metals sector' highlighted that the mining project finance sector was severely impacted by the global economic downturn, as the total 2009 deal value dropped to $5,4-billion, compared with the almost $8-billion closed globally in 2008.

Nedbank Capital joint head of mining resources Mark Tyler said that Nedbank's achievement against the negative backdrop was the result of robust risk management processes that the bank had put in place prior to the onset of the economic crisis.

"While it can't be denied that Nedbank Capital enjoyed something of a geographic advantage during a period dominated by projects in developing countries, it was undoubtedly Nedbank Capital's business-as-usual approach that served to inspire confidence in our clients, encourage them to push through with their projects despite the challenges, and contributed significantly to our continued success as a provider of holistic solutions to the African mining industry," he commented.

The bank closed on a number of prominent deals during the 2009 year, among them: the re-financing of a R1,92-billion revolving credit facility for Kumba subsidiary Sishen Iron Ore Company; a $165-million project finance facility for a uranium mining and ore treatment facility at Paladin's Kayelekera uranium mine in Malawi; and the raising of R4,5-billion for a BBBEE transaction that saw a consortium of investors and community groups acquiring a 24% empowerment stake in Richards Bay Minerals.