Africa Finance Corporation (AFC) the leading infrastructure solutions provider in Africa, and Xcalibur Multiphysics, the worldwide leader in airborne geophysics, have announced their intention to partner on mapping, developing and co-financing natural resource projects that will spur minerals and critical raw materials beneficiation in Africa
The primary goal of the alliance is to support the development of the natural resource value chain on the continent, contribute to the energy transition by reducing dependency on fossil fuels and support the path to more diversified and sustainable economies. The partnership was announced at a signing ceremony at the Mining Indaba in Cape Town, South Africa.
AFC and Xcalibur, through their partnership, will prioritise projects to locate and identify AFC’s focus minerals, including precious, base and critical raw materials, comprising gold, diamonds, bauxite, manganese, copper, cobalt, graphite, lithium and rare earth elements. As a result, African countries will have access to improved geological data, which will de-risk investments in the sector, create local jobs, unlock mineral resource wealth and ultimately support a more just energy transition on the continent.
Xcalibur will lead in providing the technical and mapping expertise, while AFC will lead in identifying and implementing investment and financing solutions for approved projects. Project development in seven priority countries is well advanced, extending soon to other African countries.
AFC is one of the largest investors in Africa’s natural resources sector, leading transformational projects such as Nigeria’s Segilola Gold Mine, the country’s first private sector-led, commercial-scale gold project. The Corporation is also the lead investor in several precious and transition metal projects in the region, including the Karowe diamond mine in Botswana, the Kipushi copper and cobalt project in the Democratic Republic of Congo, the Franceville and Okondja manganese mining projects in Gabon and the Alufer Mining bauxite project in Guinea.
These investments, among others, target in-country value-addition and beneficiation from Africa’s natural resources. The approach multiplies employment creation, increases export prices and government revenues, reduces trade costs and, importantly, minimises the carbon footprint associated with exporting raw materials and reimporting finished products.
“Africa has the largest reserves of the minerals and metals required for the global energy transition; the challenge is a lack of investment in mining, transportation, clean energy and processing,” remarked Sameh Shenouda, executive director and chief investment officer of AFC. “This is exactly what this partnership aims to address, and we look forward to working with Xcalibur to develop and finance critical projects that transform Africa’s resource wealth into economic fortune and spur economic diversification.”
