An undertaking set up in Abu Dhabi Global Markets, which is being backed by Abu Dhabi Catalyst Partners, plans to provide finance worth $500 million for mining projects in emerging markets such as Africa, Asia and South America in the next 3 to 5 years.
Alphastream Partners, a joint venture amid two investment bankers running UK-based Portman Partners and ADCP, will offer debt and equity funding to companies developing mines for precious metals, industrial metals and rare earth elements.
"We've targeted $500m over the next three to five years both in the form of debt and equity," stated top official.
The company also plans to raise debt to obtain royalties or commodities streams produced from the projects it funds. The company does not plan to finance exploration projects rather focusing on projects with proven reserves.
The International Energy Agency mentioned that the demand for metals such as lithium, nickel and cobalt has climbed in recent years due to their increased use in batteries required to power electric vehicles. If the clean energy transition develops at a pace to meet the Paris Agreement's climate goals, demand for graphite, cobalt and nickel is likely to develop about 20-25 times present levels by 2040. Demand for lithium is anticipated to grow over 40 times.
Lithium prices are up 69% so far this year and cobalt prices are up 39% but both remain below 2018 peaks.
Alphastream Partners will mainly focus on funding projects in Africa, Asia and South America, Mr Francis stated.
By building on incorporation opportunities among the renewable energy and mining sectors and recognizing the role that the mining industry has to play in enabling a continent-wide energy transition, AEM 2022 will drive investment and deal-making in the energy and mining value chains across Africa.
“Foreign investment will play the most vital role in supporting economic growth and eliminating energy poverty in Africa for years to come,” highlights NJ Ayuk, Executive Chairman, African Energy Chamber. “AEM 2022 will present foreign investors with valued opportunity to identify meaningful investment opportunities that will not only pledge long-term and sustainable project developments, but will also generate multiple economic benefits through job creation, local content, and industrialization.”