spending capital prudently and avoiding unnecessary M&A during a commodity super cycle will ensure success. How are these factors influencing investment appetite and how are investors and miners aligning? Investors and miners are almost always misaligned. Investors who do not understand mining should not invest in mining stocks. Short-term investors should stick to tech stocks and other industries where short-term gains may be easily monetised. Mining investors must be prepared to take a long-term view on their stocks and develop a longer-term view on the sector. If investors approach mining investments with these lenses, it will enhance alignment with the sector. Is the push from BRICS countries to trade in their own currencies in any way influencing mining trade deals yet? Mining companies trade in a global benchmark industry producing commodities that attract a USD price. Unless there are captive arrangements or vertically integrated operations whereby commodities are being produced and sold to a BRICS country under a bilateral arrangement, most miners will deliver into a global market earning hard currency revenues. Which countries in Africa are garnering the most FDI for mining projects? How are lenders reading South African mining risk. • Cote d’Ivoire • Tanzania • Zambia • Botswana • Namibia • DRC Each country above has a unique mining investment attractiveness. We are seeing a steady rise in capital flows into these jurisdictions for gold, copper, cobalt, uranium and rare earth minerals. South African mining risk remains low but given unclear regulatory frameworks, a lack of a mining cadastre and poor turnaround times by the mining regulator has severely dented capital flows into SA which has resulted in a drying up of mining exploration activity for the next commodity super cycle. Are you able to share insight into where South Africa stands as a country in attracting foreign investment for local mining projects? South Africa is not attracting its fair share of FDI for mining projects as much as it should. Mining project developers find it incredibly challenging to work with poor regulations, unclear investment frameworks, a lack of transparency and long response times from the regulator. These factors frustrate project developers to the extent that they migrate into neighbouring states such as Botswana, Namibia, Zambia and the DRC in search for exploration permits. Junior miners continue to face challenges in attracting project investment. Are there any innovative ways to access funding that have become available? There is no mining project in the world, junior or not, that will struggle to attract capital for development, only a lack of readiness and preparedness by the project promotor when
accessing capital markets. Nedbank has been actively promoting the concept of including funding plans into feasibility studies. Often, we find studies being released without an adequate funding plan. This creates a perception of being poorly prepared and approaching investors for capital without a plan. Which commodities does Nedbank see garnering the most funding – why is this? Copper, gold, PGMs, rare earth minerals, cobalt, iron ore, uranium. The energy transition is fuelling the demand for critical minerals while gold provides a safe-haven investment option. Gold has breached the US$5 300 /oz level but has retracted marginally lower. Analysts say this is largely due to a rise in geopolitical risk, a weaker USD currency and central banks higher demand for the safe-haven metal. How is the stronger demand for precious metals affecting investment in project developments? Gold and silver project developers and producers are attracting the most capital, followed closely by copper and rare earth mineral developers and producers. Diamond projects and operating mines are not attracting any form of capital at present given the depressed diamond price market and lack of demand for the expensive gemstone. Given the strong push from Western nations to invest in critical minerals, how well positioned are SA and Africa as critical minerals producers? There’s no definition of critical minerals. The closest definition would be minerals that are essential for the green energy transition. If we apply this definition, we are referring to copper, cobalt, graphite, tin, manganese, PGMs, nickel, lead and rare earth minerals. SA is well positioned to harness its endowment of PGMs and manganese to benefit mine owners, government and local communities in this commodity super cycle the world is currently experiencing. Given that Nedbank is positioned as a “green bank”, is there a growing focus on investing in clean energy projects? Nedbank led the funding of the restart of the Langer Heinrich Uranium mine in Namibia, owned by Australian listed Paladin Energy. This would be our greatest example of funding clean energy solutions for a greener economy. We are currently on mandate to lead arrange a funding package for Deep Yellow, another ASX listed company looking to make a final investment decision on its Tumas Uranium Project in Namibia. Is there an increase in M&A’s in the mining sector? What are some of the drivers for this and which commodities do you see as being ripe for the picking? M&A activity can been viewed as big-ticket mergers and low-key acquisition of assets / projects. We have been closely following: • the failed merger of Glencore and Rio Tinto, • the merger of Anglo American and Teck Resources, into Anglo Teck, • locally, Exxaro’s acquisition of key manganese assets in SA, • AngloGold Ashanti’s acquisition of Centamin plc, • Zijin Gold’s acquisition of Allied Gold Inc, • Robex Resources’ acquisition of Predictive Discovery in West Africa. n
JUNE 2026 | www.modernminingmagazine.co.za MODERN MINING 17
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