Developments In The Mining Sector In Sub-Saharan Africa

AFRICA PLAYS HOST TO MORE THAN 1,850 MINING PROJECTS IN VARIOUS STAGES OF DEVELOPMENT BY MANY OF THE WORLD'S LARGEST MINING COMPANIES ¹. A LARGE NUMBER OF DEALS HAVE REACHED FINANCIAL CLOSE IN RECENT YEARS, BUT RECENT LEGAL AND REGULATORY CHANGES HAVE POSED FRESH CHALLENGES IN A NUMBER OF AFRICAN MARKETS. IN THIS ARTICLE, WE WILL SEEK TO OUTLINE SOME OF THOSE CHANGES AND DISCUSS THE MINING LANDSCAPE MORE GENERALLY.

DEAL UPDATE

51 mining projects reached financial close in the years 2014-2018 (according to IJGlobal), which were structured as follows ²:

• 26 were 100% debt-financed – nine with term loans only, five with term loans and other debt and two with bridge facilities;