Notable progress has been made in Nigeria’s efforts to revive its mining industry. Thor Explorations, a Canadian business, is working to develop a 535,000 oz resource and has the potential to be a major mining player in Nigeria. As exploration and new discoveries in the region ramp up, unlocking the potential of the projects will depend on the ability to raise finance, but it has to be the right type of finance. Traditional financing often ostracizes smaller players and cur- tails smaller projects. Crowdfunding is a method that is gaining traction, especially in advanced mining countries such as Canada. Whether this method can be replicated in Africa remains to be seen but innovation – be it technological or financial – will be advantageous for local and international companies. In the Innovation, whether it be financial or technological, will benefit both local and international businesses. In the past few years, mining has come to the attention of boutique private equity firms. Private equity typically adopts a long-term perspective, with the goal of matching long-term capital with long-term projects. This year has seen a rise in global private equity mining deals, with many mining companies viewing these deals as the best way to advance their projects and also provide strategic and managerial expertise. Because mining is cyclical, timing is crucial for investors.
Although the price of gold has greatly increased, demand is still restrained because other base metals are still trading at cheap levels. Any project’s course will be determined by its due diligence, yet notwithstanding legislative advancements, investor trust is undermined by the perceived opaqueness and bureaucracy around licence acquisition. Despite being the third-largest producer of gold in West Africa, after Ghana and Mali, Burkina Faso does not receive the credit it merits. The country is rich in manganese and other rare earth metals in addition to gold, which makes it a popular mining site.
Notable progress has been made in Nigeria’s efforts to revive its mining industry. Thor Explorations, a Canadian business, is working to develop a 535,000 oz deposit and has the potential to be a major mining force in Nigeria. Unlocking the potential of the assets will depend on the ability to attract cash, but it has to be the correct kind of finance, as exploration and new discoveries in the area pick up speed. More often than not, traditional finance discourages and marginalises smaller players and ventures. One technique that is becoming more popular is crowdfunding, particularly in developed mining nations like Canada. It remains to be seen if this strategy can be applied in Africa, but innovation in all forms—financial and technological—will benefit both domestic and foreign businesses.
Over the past few years, boutique private equity companies have begun to show interest in the mining industry. Funding for mining ventures may occasionally be misdirected. Traditionally, private equity has had a long-term perspective, seeking to connect long-term projects with long-term funding. Global private equity mining agreements have increased this year, and many mining companies view them as the finest means of advancing their operations and obtaining managerial and strategic know-how. Due to mining’s cyclical nature, investors must time their investments carefully. Although the price of gold has greatly increased, demand is still restrained because other base metals are still trading at cheap levels. Any project’s course will be determined by its due diligence, yet notwithstanding advance-ments in legislation, the perceived lack of transparency and bureaucracy associated with license acquisition deters investor confidence.