Mining is a competitive and complex industry, so it’s no easy task to enter this market let alone succeed in it.
Access to funding remains a challenge, especially for junior mining companies who seek to make their start in South African mining.
That’s why our Anglo American sefa Mining Fund plays a fundamental role. With funding support in a form of equity or loan or a combination of both from this Fund, junior miners are able to grow and develop their businesses to the point where they’re commercially bankable.
Getting started
The Fund was established by our enterprise development initiative, Zimele together with government-owned entity sefa, the Small Enterprise Finance Agency, with the aim to give junior miners the tools they need to develop and grow their businesses.
Mining in South Africa is often dominated by large multinationals and this fund is our way of facilitating diversification in the local industry by supporting junior companies to enter the market.
Alugumi Dzebu, senior investment manager of Partnership Funds at Zimele explains, “Without assistance, many black-owned junior mining companies wouldn’t be afforded the opportunity to operate in the formal mining sector, which doesn’t reflect our collective commitment to transformation.”
Many junior miners don’t have mining or technical background, which is exactly why Zimele offers support during the exploration and pre-feasibility stages where these skillsets come in handy. On top of financial assistance, the Fund also supports these junior mining companies with technical expertise and mentorship to ensure that they are well equipped to establish their businesses and for the future.
Putting it into practise
One of the many success stories of the Anglo American sefa Mining Fund is the story of Wilson Masilo, an inspiring 34-year-old entrepreneur who started his own business, Simmer Deep Gold Mining (Pty) Ltd, an aspiring gold reclamation company, currently finalising the feasibility study of the Tshepisong Dump project in Mogale City through assistance from Zimele. Through committed funding from Zimele, Wilson will also be able to buy the equipment he needs to get his business up and running.
Thanks to this support, Wilson’s company will be able to get involved in the re-mining of old gold dumps and will be able to contribute towards the Mogale City economy by creating 65 permanent jobs. Wilson now has hopes to grow his business into a fully-fledged mining company through Zimele’s support.
Learn more about Zimele and its various funds and see how we’re playing our part in growing the industry and the country through enterprise development.