Metals and Mining (IDC)

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Dorthy Armstrong
5 years ago
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Metals and Mining (IDC) Descriptin: The IDC s gal is t ensure glbally and dmestically cmpetitive dwnstream activities in the value chains f the metals that are used in autmtive, machinery and

1 Metals and Mining (IDC) Descriptin: The IDC s gal is t ensure glbally and dmestically cmpetitive dwnstream activities in the value chains f the metals that are used in autmtive, machinery and equipment and fabricatin. Ultimately, the IDC wish t see a glbally cmpetitive and diversified lcal basic metal and mineral resurce industry that prduces a significant amunt f the metals prducts and minerals fr the lcal market and the rest f Africa, as well as increasing exprts f value-added minerals. Accrdingly, the Metals and Mining unit ffers finance and, where relevant, technical assistance t a range f entities in the mining space including emerging mining huses. The IDC fund the develpment f prjects that increase the prductin f nn-ferrus metals, irn and steel, the develpment f large mines and the manufacture f jewellery. In shrt, the IDC is keen n prjects that beneficiate and add value, lcally. Outcmes: The IDC envisage that thrugh ur funding and prject develpment activities, the IDC can have the fllwing impact n the Suth African ecnmy r the IDC can achieve the fllwing utcmes: Expand and extend existing industries in rder t create and/r preserve jbs and drive sustainable ecnmic grwth. Enable the lcal basic metals and mining industry t achieve its ptential and becme glbally cmpetitive. Ding business with the unit: The IDC cnsiders applicatins fr the fllwing: Financing f fixed assets and the fixed prtin f grwth in wrking capital requirements; New prjects, expansins and rehabilitatins;

2 Buy-ins r takevers and acquisitins f existing prfitable businesses by applicants wh can shw a significant histrically disadvantaged persns cmpnent. Financing is als pssible fr mining-related activities such as cntract mining and expansins and wrking capital requirements fr existing jewellery businesses. We are keen n prjects that have a significant develpmental impact n jb creatin, exprt generatin, value additin, strategic value, industry develpment, empwerment and rural develpment. Funding criteria: Cmpliance with internatinal envirnmental standards. Sharehlders/wners are expected t make a financial cntributin: The cntributin f histrically disadvantaged peple under special circumstances may be lwered, in which case the IDC will be prepared t extend finance in excess f the wner's cntributin. The prject/business must exhibit ecnmic merit in terms f prfitability and sustainability. The IDC des nt re-finance fixed assets since ur aim is t expand the industrial base. Security, the frm and nature f which will relate t yur specific circumstances. Mining deals have unique requirements: Mineral rights Details f all the mineral rights held, including the way they are held, such as a prspecting permit r mineral rights wnership and the remaining duratin f such leases/rights. The ptins assciated with the varius rights, such as renewal cnversin f prspecting rights int mining rights and s n. Obligatins assciated with the varius rights.

3 Reserve and mineral resurces Classificatin f the mineral reserve/resurce inventry f the mines as per the SAMREC r JORC cde. The classificatin shuld include a discussin n tnnage, seem/reef, thickness dip, grade, depth belw the surface, etc. fr bth the reserve and resurce calculatins. The IDC may require verificatin by independent cnsultants acceptable t the IDC, f the re reserve calculatins, and future mining and prcessing csts. Adequate drilling and explratin data t prve that sufficient reserves are available t keep the mine prducing fr at least twice as lng as the prpsed funding. Sampling infrmatin t substantiate r illustrate the average grade and variatins within the re-bdy. Relevant gelgical reprts and maps fr the depsit. Histrical prductin/mining Prductin recrds in the case f currently prducing mines. A mine design and a mining plan, indicating mining blcks, grade and the prpsed mining schedule. Prf that extractin prcess has been adequately researched t determine that the yield will be acceptable pilt plants, tests are essential if re beneficiatin is t be undertaken. Flw diagram f the recvery prcess, capital items required; capacities and expected recvery rates. An envirnmental impact assessment and the assciated envirnmental management prgramme reprt and mining authrisatin.

4 A cmprehensive feasibility study incrprating all the abve infrmatin Details f cmmdity cycles, ff-take agreements, and the like. Wrking capital cstings wit cgnisance given t stck accumulatin requirements. Detailed csting schedule illustrating current and r future wrking csts a capital expenditure fr develpment and perating the mine. Applying fr funding: The IDC cnsiders each applicatin carefully. In additin t the specific requirements f the strategic business unit, applicatins must meet the IDC's minimum requirements. Minimum requirements: Minimum requirements Cmpliance with internatinal envirnmental standards. Sharehlders/wners are expected t make a financial cntributin: The cntributin f histrically disadvantaged peple under special circumstances may be lwered, in which case the IDC will be prepared t extend finance in excess f the wner's cntributin. The prject/business must exhibit ecnmic merit in terms f prfitability and sustainability. The IDC des nt re-finance fixed assets since ur aim is t expand the industrial base.

5 Fr mre infrmatin please cntact Incentive SA n the fllwing numbers: Cape Twn: Jhannesburg: Durban:

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