RMB funds mining projects in DRC

MEDIA RELEASE

1 FEBRUARY 2023

RMB partners with Trafigura to fund mining, growth and development in the DRC with $600m syndicated loan

RMB has been appointed as a lead lender and agent (facility, security and document) on a $600 million syndicated prepayment term loan facility to Trafigura, one of the world’s leading independent commodity trading companies. The loan is underpinned by a facility that Trafigura has with Shalina Resources Ltd.

In January 2022 Trafigura entered into a financing agreement with Shalina Resources Ltd., a leading vertically integrated copper and cobalt producer in the DRC. The loan is earmarked to fund the development of two mining projects to expand their copper and cobalt production from the country. These are some of the most sought-after commodities in the world due to their importance in the energy transition. RMB stepped in during February 2022 to fund into this loan, as well as to crowd in other lenders and coordinate the closing process for the funding package in support of Trafigura.

The funds will enable the completion of two projects in the DRC, namely the development of the new mechanised Mutoshi Mine and processing plant in Kolwezi, and the expansion of the existing Etoile processing plant in Lubumbashi. The Mutoshi Mine, which will become the third largest cobalt mine globally, is expected to start production by the fourth quarter of 2023, with a production capacity of 16,000 tons of cobalt hydroxide and 48,000 tons of copper cathode per year.

“Cobalt and copper are among the key minerals used in battery technologies, renewable energy infrastructure, and electricity distribution. The DRC has some of the richest mineral deposits globally and funding projects to develop these resources will not only contribute significantly toward global energy transition and sustainable power generation, but toward economic growth for the country,” said Thulani Mdhluli, Resources Transactor at RMB.

RMB has a long-standing relationship with Trafigura and has become a trusted partner in facilitating numerous business opportunities on the continent. Trafigura’s transparency and this partnership enabled the seamless soliciting of approvals, bolstering RMB’s role as lead lender and agent on this transaction.

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Contact:

Kate Kelly l RMB l kate.kelly@rmb.co.za