Africa How Do We Use The Abundant Minerals

By Tshepo Magagane – Executive Metals & Mining

Africa how do we use the abundant minerals – I have talked about the key lessons one imparts to new grads when joining “Energy & Resources Investment Banking”

• Mining – we focus on the grads mastering the financing and technical aspects of the metals

• O&G – there are only 2 prices, and you use WoodMac for field data – however, you drill into them to be able to be able to “UNDERSTAND THE FISCAL REGIME”

• Utilities – it is about understanding the prescribed and proscribed formulae driving revenues and costs

We need to focus more on the lessons from O&G and Utilities for Mining!

If Africa misses this chance that the Transition presents, when will we get another chance?

It can be done – I will never forget when Royal Bafokeng started by doing the “Royalty to Equity” conversions – see how wealthy they are now!

Also further West from Bafokeng and cross the border into Botswana – see what happens when a country takes charge of its minerals!

It starts with finding Capital solutions to develop these projects for the required minerals/metals – the key is finding capital focused on creating a local ecosystem…

…as I have said “Imagine if an African vehicle had just 25% in the vehicle that bought Khoemacau out of distress” – that vehicle would have turned USD12.5m into USD500m in 8yrs – then you could be using that capital to recycle back into other projects to rinse and repeat that process…

…why this inflames my passion so much – it can be done!