Standard Bank Namibia’s Corporate and Investment Banking (CIB) division announces a five-year agreement with AfriTin Mining. The deal enables the Uis-based miner to fund the phase 1 extension of its processing plant, increasing output by 67% from 720 to 1200 tonnes per year (tpa). The phase 1 extension will be completed by the second quarter.
Furthermore, Standard Bank will finance an envisaged phase 2 extension, increasing production to 1,300 tpa. AfriTin says that lithium and tantalum are important by products of its operations and position the miner as a potential global supplier of these minerals. CIB will also provide AfriTin with a guarantee to Namibia Power Corporation as a deposit for the supply of electrical power to the mine.
“This deal gives us the opportunity to enable the creation of more jobs and reviving an economy of a town with around 4,000 inhabitants,’’ says Nelson Lucas, Head: Corporate and Investment Banking at Standard Bank. “In line with our purpose ‘Namibia is our home, we drive her growth’, we take pride in creating value and improving the lives of Namibians through this loan.”
London Stock Exchange-listed AfriTin is a mining company with assets in different African countries. Its pilot plant in Uis reached nameplate capacity of 720 tpa last year, triggering the current expansion plans. Demand for tin, traditionally used in packaging and batteries, is on the rise given its application in semi-conductors and circuits for the growing electronics industry, and the rollout of 5G networks globally.
Standard Bank has closed several high-profile investment banking deals in mining recently, including the financing of Debmarine’s latest and most advanced diamond mining vessel. “The bank leverages superior mining and metals sector expertise with a well-established presence across Africa,” says Nelson Lucas. “We also connect primary producers in Africa with large global markets, leveraging off our institutional relationship with the Industrial and Commercial Bank of China (ICBC). Our multi-disciplinary expert teams assist with identifying opportunities and navigate risks and challenges.”
Nelson Lucas adds: “The mining industry’s shift towards a greener, more sustainable and more community-orientated business model is accelerating as mining groups seek to maintain their social licence to operate and position themselves for long-term growth. The continued focus on climate change and on the wellbeing of local communities means that many mining groups have responded by accelerating the reduction of carbon emissions and addressing social issues.
“We recognise that this transition is an ongoing process that many of our clients have undertaken to meet regulatory, legislative and societal needs. Standard Bank is well positioned to provide them with specialist technical financial expertise required to operate in the mining and commodities industry.”
In addition to this hallmark financing deal, AfriTin also just completed its dual-listing on the Namibia Stock Exchange which will allow local entities and individuals to invest in this emerging African tech metals company.
Contributed by Standard Bank Namibia