Maybe we do need the likes of Bill Gates or Stellantis?
Author: Tshepo Magagane – Pangaea Executive Director
Maybe we do need the likes of Bill Gates or Stellantis?
I say yes to the first part – Specialist Mining Funds stand at USD17-20bn globally, while the global identified copper capital requirements will come in at min USD200bn!
To unlock Zambia’s independent projects, both the Chamber of Mines and myself come to around USD12-15bn (actually using different methodologies – they use Chile and I use replacement cost)!
Over the past 18mths, we have been working to unlock an African focused mining fund – hurdles after hurdles – in summary 1. People do not understand mining 2. People still view Africa with an 80s lens!
It is going to take more bolder solutions – especially on the anchoring side – you need that to unlock capital that is sitting in Pensions / Endowments – therefore billionaires such as Bill Gates will be key!
And there is a role for Venture Capital as well – Kobold has shown a model that can be used.
OEMs are stuck in a quandary whereby it makes sense from a Strategy point of view (you will get the full support of these guys) BUT the Procurement guy is going “I need capital to cover this order book” – and they then overrule the Strategy people!
We need bold solutions and less talk now…the clock is ticking down?
