Mining and Metals

HOWWE FUND BUSINESSES IN THE
MINING AND METALS SECTOR

Promoting Entrepreneurship Through Building Competitive Industries and Enterprises Based on Sound Business Principles.

 

Mining, Metals & Beneficiation SBU

 

Key among the Mining and Metals Strategic Business Unit (SBU) objectives is to support the development of a globally competitive mining and beneficiation industry and the metals value chain (steel, aluminium value chains), in South Africa and on the African continent. The ultimate objective is to develop large-scale industrialisation and job creation in the county and the continent.

WHAT WE FUND

The IDC Mining and Metals Strategic Business Unit (SBU) funds processing in the following sub-sectors of the value chain.

 

With a primary objective in supporting the development of production capacity for the manufacturing of critical metal products in South Africa and the continent, the growth of new mining and beneficiation projects and/or expansion of existing mining and beneficiation operations occur across most commodities, including:

 

  • Base Metals
  • Precious Metals
  • Coal
  • Industrial Minerals (limestone, aggregates).

 

In the metals value chain, we fund the establishment of new metal processing and fabrication facilities and/or expansion of existing facilities including:

 

  • Primary Steel Mills
  • Mini-Mills,
  • Semi-Fabricators
  • Foundries
  • Metal Fabrication Factories.

 

We also fund strategic acquisitions of existing enterprises by Black Industrialists in the mining and metals sector.

WHO SHOULD APPLY FOR FUNDING?

Our objective is to support entrepreneurs who seek to invest in industrial capacity development and job creation within the mining and metals sector. Hence the following funding applications are welcomed:

 

  • Companies that seek to implement new mining and beneficiation projects and/or expand existing mining and beneficiation operations.
  • Companies that seek to establish new production facilities and/or expand existing production facilities in the metals sector.
  • Black Industrialists who seek to make strategic acquisitions of existing enterprises in the sector may also apply for acquisition funding.

HOW DO WE FUND

We provide long-term debt, short-term working capital, guarantees and/or equity-type finance instruments, on commercial terms and on risk-adjusted interest rates with commensurate security. We provide debt funding from a minimum of R16 million. Smaller funding applications are referred to our Small Business Finance Unit. Shareholders are expected to make a financial contribution. Financial contribution of historically disadvantaged South Africans may be lowered. The projects and/or businesses must exhibit economic merit in terms of profitability and sustainability. We do not re-finance existing financing facilities.

HOW TO APPLY FOR FUNDING?

Application for funding should be in writing and should include a letter of application for funding and a comprehensive business plan. Mining deals have unique requirements and as such, a comprehensive feasibility study covering key aspects such as mineral rights, resources and reserves estimates, environmental impact assessments, will be required. For guidelines on what should be included in the letter of application for funding and business plan, click here.

INVESTMENTS IN THE REST OF AFRICA

The project must be of direct benefit to South Africa in any of the following ways:

 

  • Must promote regional economic development with linkage to SA
  • Upstream / Downstream businesses within IDC value chains
  • Must develop and integrate regional value chains in line with IDC priority sectors
  • Must support the implementation efforts of the AFCFTA in order to entrench the development of regional VCs and a move away from a reliance on offshore supply chains
  • The minimum size of the total project funding requirement must be:
    • R5-million SACU-based investments
    • USD 3 million for SADC-based investments
    • USD10-million for investments in countries outside SADC
    • Rand, US Dollar and Euro-based funding are available.

SOME TRANSACTION HIGHLIGHTS

HOW TO

APPLY FOR FUNDING

Application for funding should be in writing and should include an executive summary and a business plan.

STEP 1

BUSINESS PLAN

Draw up a well-researched business plan, stating a compelling case for funding

STEP 2

REGISTER ONLINE

*Applications can also be submitted at the IDC office

STEP 3

UPLOAD APPLICATION

Upload your application with the relevant documents, certificates and business plan

STEP 4

PROCESS APPLICATION

IDC will confirm that it has received your application. While processing we may ask you to supply extra information or documentation

STEP 5

APPROVAL STATUS

IDC will give you feedback on the outcome of your application, in writing. If your application is successful, due diligence will be conducted on your business.

STEP 6

LOAN CONTRACT

Once the IDC has satisfied itself of your bona fides, you will be asked to sign a loan contract

OTHER INDUSTRY SECTORS

WE FUND