PIC sets aside R1.35 billion to fund early-stage mining projects (50% in SA)

The Public Investment Corporation (PIC) has announced it's set aside R1.35 billion to fund early-stage mining projects.

It says the money will be invested across diversified commodities, geographies, and development stages (at post-scoping up to bankable feasibility study/BFS stage).

This approach is aimed at mitigating the high-risk nature of early-stage mining investments while delivering attractive returns for PIC clients.

At least 50% of the projects must be in South Africa, with an allocation for the rest of Africa available.

The state-owned entity manages the bulk of investments for the Government Employees Pension Fund (GEPF).

And they've allocated money for this venture from the GEPF, which is their biggest client, says the PIC's Heidi Sternberg (sector specialist for Mining, Beneficiation and Energy).

"We're excited to eventually bring this project that we've been working on for a very long time, to the market... The GEPF are looking to invest indirectly through a particular model into mining, focusing on South Africa and the rest of Africa... also commodities that are aligned to the just energy transition as well as green energy and all the things that we probably haven't explored to the full extent that could have been explored historically."

This lag is because there has been such a big focus on mining commodities like gold, coal, iron ore and diamonds, Sternberg says.

Giving more detail on the specifics of the 'early-stage mining' the PIC will target, she notes that very early-stage mining projects are already covered by the R400 million fund put together by the Industrial Development Corporation (IDC) in conjunction with the Department of Mineral Resources.

The gap after that, which the PIC is looking to fill, is projects that are already post-discovery.

'These are projects that have boreholes drilled, that have got defined early-stage resources but are not yet at the bankable feasibility stage', she says.

The PIC has published the details for sending applications and enquiries about funding.

To listen to the PIC's Heidi Sternberg in conversation with Stephen Grootes on 702's The Money Show, click on the audio link below: