Appian, World Bank start $1B critical minerals fund

[Redator]

UK private-equity firm Appian Capital Advisory is teaming up with the World Bank-owned International Finance Corporation (IFC) to start a $1 billion critical minerals, metals and mining fund that will be dedicated to emerging markets.

Washington-based IFC will anchor the fund, contributing $100 million at first, while its IFC Asset Management unit raises additional capital, according to a statement issued Tuesday. The fund will aim to support the development of “responsible, high-impact” mining projects for commodities essential to economic growth, the energy transition and key digital technologies.

IFC’s commitment “is a strong endorsement of our ability to identify and responsibly develop high-quality assets, unlocking long-term value for our partners,” Appian founder and CEO Michael Scherb said in the statement. “It also underscores the vital role mining can play in driving sustainable economic growth and delivering lasting benefits for local communities, particularly in regions where development needs are most pressing.”

Managed by London-based Appian, the fund will target equity, credit and royalty investments across emerging markets, with a focus on Africa and Latin America. It will finance mineral development projects across all stages, including construction, production and expansion. It’s the first mining-focused vehicle created solely to invest in emerging markets.

Atlantic Nickel

Its maiden investment is in Atlantic Nickel’s Santa Rita nickel-copper-cobalt open pit mine in Brazil’s Bahia state. As Santa Rita transitions to underground production, annual output is expected to climb to about 30,000 tonnes of nickel equivalent, with a mine life of more than 30 years. Atlantic Nickel is owned by Appian, and IFC is investing on the same terms as other investors.

Appian is spending $600 million from this year through 2030 on the underground transition, the company’s base metals head said in an interview in March.

“Minerals are essential for building industries, creating jobs and driving economic growth,” Makhtar Diop, IFC’s managing director, said in Tuesday’s statement. “Partnering with companies like Appian will help bring more private capital to places that need it the most, expanding access to critical resources and helping local communities benefit from the development of their mineral wealth.”

All investments will be subject to IFC’s performance criteria and environmental, social, and governance standards, which meet or exceed international best practices in responsible mining.

This marks the first time that the IFC has created a fund with a metals and mining private equity investor. IFC and Appian have been working together for 10 years, and two of their joint investments in African rare earths and gold projects resulted in mines being built.

Appian, which manages about $5 billion in assets, has brought 12 mining projects into production since 2016. That’s more than the five biggest international mining companies combined over the same period, according to the private equity firm.