Private equity firm Appian Capital Advisory in partnership with International Finance Corporation (IFC) has launched a US$1 billion ($1.54 billion) critical minerals, metals, and mining fund for emerging markets.
Managed by Appian, the fund will co-invest alongside Appian Natural Resources Fund III and Appian Credit Strategies Fund I, as well as future Appian funds. It will target equity, credit and royalty investments in the metals, mining, and adjacent industries across emerging markets, with a focus on Africa and Latin America.
The fund will invest alongside Appian’s existing and successor funds, supporting the development of “responsible, high-impact mining projects for commodities essential to energy access, critical industries and future-facing technologies”.
All investments made through the Fund will be required to meet IFC’s rigorous performance criteria and environmental, social, and governance (ESG) standards.
IFC will anchor the fund, with an initial contribution of US$100 million. Additional capital will also be mobilised by the IFC Asset Management Company (AMC).
It represents IFC’s first fund established in partnership with a metals and mining private equity investor.
The fund has agreed to invest in Brazil’s Santa Rita nickel-copper-cobalt mine located in Bahia state, which is currently transitioning to underground production.
The mine is expected to ramp up production to approximately 30,000 tonnes per year of nickel equivalent, with a mine life exceeding 30 years. The mine is owned by Atlantic Nickel, a wholly owned affiliate of Appian.
IFC is investing on exactly the same terms as other investors, with the terms agreed following independent valuations of the asset by Citi and Standard Chartered.
The partnership between IFC and Appian represents IFC’s first collaboration with a private equity investor specialising in mining to develop a dedicated fund.
Appian has US$5 billion in assets under management. Since 2016, Appian has brought 12 mining projects into production – more than the five largest global mining companies combined over the same period.
The fund is touted as the first dedicated mining fund focused exclusively on emerging markets, targeting critical minerals, and commodities required for economic growth, the energy transition and key digital technologies.
Write to Adam Orlando at Mining.com.au
Images: Atlantic Nickel
