Fieldstone Africa - Closing of SepFluor’s Nokeng fluorspar mining project

Dear Clients and Friends of Fieldstone Africa,

We are pleased to announce the financial closing of SepFluor’s Nokeng fluorspar mining project in Rust de Winter, South Africa, at the end of last month. The official announcement of the Project initiation, which was released yesterday, is attached.

Fieldstone Africa advised SepFluor on the debt financing of the R 1.7 billion (US$ 125 million) project, with Nedbank, FMO (the Dutch development finance institution ) and DEG (the German development finance institution ) providing the senior debt, and Concentrate Capital Partners the subordinated debt.

The project is one of the first greenfield projects undertaken in the mining sector in the past several years in South Africa, and closed prior to the announcement of the proposed Mining Charter revisions.

“Given the macro-economic context, this was not a simple transaction, but should be of great benefit to the country”, according to Jonathan Berman, who led the Fieldstone Africa team that advised SepFluor over the past 34 months.

“Our client was methodical in project preparation, and deployed an excellent management team, and despite the challenging credit risk environment for mining this ultimately led to a bankable deal.”  

Berman’s Fieldstone Africa team included Husain Majam and Yasthira Ramdenee. The transaction is the first of a series of proposed mining transactions in which Fieldstone Africa is assisting in, as the sector recovers.

While this success evidences that a low-cost producer can access the debt and capital markets with a well-planned and executed project, the challenge for South Africa is to create conditions that would allow further development and job growth in the sector to take place. The proposed Mining Charter revisions must be evaluated on the basis of whether they achieve this end, or choke off investment in this vital sector for the South African economy.

View  Press Release: Work Starts on New Fluorspar Mine

Best Regards 
Jason Harlan
Chief Executive Officer
Fieldstone Africa