Windhoek
With about a week and a half to go before the much anticipated 2016 Mining Expo this month, Standard Bank says it is ready to partner and support the growth of the local mining industry.
“Standard Bank understands that mining companies require big chunks of financing for their large-scale mining projects,” says Adri Spangenberg, the head of client coverage at Standard Bank.
One of the recent highlights at the bank has been the co-financing of Debmarine Namibia’s latest sampling and exploration vessel. According to Spangenberg, this funding facility amounted to approximately N$1.8 billion.
Mining is a risky business, which is influenced by several factors including uncertainties in commodity prices on the world markets.
In terms of this year’s outlook, commodity prices may not show significant improvement. This may impact sector valuations and the ability to raise financing.
But Standard Bank Group research shows that African mining remains underexplored.
In 2013, African exploration accounted for 17% of the worldwide exploration budget, despite the fact that the continent holds more than 30% of the world’s mineral resources. So, amid a clear-headed outlook, the prospects for mining in Africa remain essentially intact over the medium term.
“Although cautious, our appetite for mining projects is quite strong,” says Spangenberg.
Mining prospects look bright for Namibia as the country is currently the world’s fourth largest producer of uranium. Through the commencement of Husab mine production, Namibia is expected to overtake Nigeria and Australia’s production by 2017.
“Like many large investment banks, we work with government, corporates and financial clients in multiple sectors and geographies. Unlike most, we are first and foremost Namibian. We have a long, proud history that gives us unique depth of expertise and breadth of footprint. We are set apart by our scale, by the strength of our regional and international connections, and by our ability to innovate. Our track record shows our success in building businesses across Namibia, especially in the natural resources, mining, power and infrastructure sectors,” comments Spangenberg.
The 2016 Mining Expo hosted by the Chamber of Mines is scheduled to be held from April 27 – 28.