Modern Mining May 2025

FINANCE

depends on materials that come from mining. The industry needs to shift from being on the defensive about its environmental impact to owning its role as the backbone of the clean energy economy. Without mining, the transition to a low-carbon world simply isn’t possible. What are some of the funding challenges that miners face, particularly junior miners? Are there any new ways to access funding and how is Nedbank assisting in this regard? The biggest challenge for junior miners is the tendency to rush through feasibility studies without properly considering how they are going to raise capital. A lot of the focus is on the technical aspects like the geology, the mine plan, and the processing plant design. But what often gets overlooked is the funding strategy. Many junior miners complete their studies and then approach lenders, only to be asked where their funding plan is. More often than not, it doesn’t exist, and that’s a problem. Lenders need to see a full picture of how a project is going to be financed before they commit capital. That means having a clear procurement strategy, knowing where key equipment and infrastructure will be sourced from, and having a structured approach to capital raising. At Nedbank, we’re actively engaging earlier in the process to guide clients on structuring their projects properly. We offer advice on how to design a capital procurement strategy, what investors and lenders are looking for, and how to align funding structures with project timelines. This helps miners avoid costly delays and increases their chances of securing funding.

bank debt is still one of the cheapest and most sustainable forms of capital available. Yes, it takes time to secure, and yes, there are governance requirements, but that is because bank debt is structured to support projects for the long term. Many miners wait too long to engage with banks, and then when they need funding, they find they don’t meet the criteria. Early engagement is key. 5. The importance of a funding plan in a bankable feasibility study cannot be overstated. Too often, junior miners rush to complete a feasibility study but don’t include a clear funding plan. That’s a problem because the first thing any

Gold remains a strong investment case.

lender or investor will ask is how the project is going to be funded. A feasibility study without a funding plan isn’t bankable. Miners need to have a clear capital procurement strategy, detailing where equipment will be sourced from, how infrastructure will be developed, and how they plan to manage key operational elements like

The biggest challenge for junior miners is the tendency to rush through feasibility studies without properly considering how they are going to raise capital.

tailings storage facilities and logistics. Without that, securing financing becomes an uphill battle.

6. Mining’s role in the green energy transition is the final key theme. This is a conversation that’s been happening for years, but it’s worth reinforcing: every renewable energy solution (wind turbines, solar panels, electric vehicles, battery storage)

16  MODERN MINING  www.modernminingmagazine.co.za | MAY 2025