“We expect to launch the new fund in the second quarter of 2008,” Arthur Mashiatshidi told an African junior mining congress in Johannesburg, on Wednesday.
The new R2-billion fund will be created in response to the large volume of opportunities “that continue to increase” but was limited by the current fund's mandate of a maximum project investment of R85-million.
The new fund, which will follow on from the current fund, will have a broader mandate that will enable it to take advantage of opportunities that were currently out of its reach.
The New Africa Mining Fund was established to promote the development of sustainable junior mining in Africa and to facilitate the entry of new BEE role players into the mining industry in terms of applicable legislation.
The current R564-million fund had, to date, made junior mining investments of some R400-million and harvested around R160-million in investment returns.
“We still have around R100-million remaining in the fund to draw on.”
BEE investment and participation in the mining sector has over recent months increased significantly.
“We have invested in a number of countries outside South Africa and met with different challenges and different degrees of success.”
The company has invested in a diversified portfolio of projects at different stages of the mining resources development life cycle, including diamonds, coal, anthracite, silica, platinum, iron-ore, copper-cobalt, gold, and kaolin.