Row rect Shape Decorative svg added to bottom Enabling mining development to support South Africa’s economic growth Absa | Corporate and Investment Banking > Insights and Events > Enabling mining development to support South Africa’s economic growth SHARE Absa CIB acts as joint mandated lead arranger, hedge provider, account bank and facility agent for West Wits Mining’s Qala Shallows Gold Project Absa Corporate and Investment Banking (CIB) has supported West Wits Mining Limited, an Australian Securities Exchange- (ASX-) listed mining company, in securing senior debt and cost overrun funding for the development of its flagship Qala Shallows Gold Project in Gauteng, South Africa. The transaction comprises R875 million in senior debt and R90 million in cost overrun debt funding, with Absa contributing R437.5 million and R45 million respectively. The funding marks an important milestone for West Wits as it progresses from prospecting miner to lead developer, by reinforcing its ability to execute a large-scale mining project in one of South Africa’s most established gold-producing regions. Located in the Witwatersrand basin, the Qala Shallows Gold Project is expected to support long-term mining activity, local employment and regional economic development. The project is anticipated to create approximately 1 000 jobs over its 18-year lifespan, while contributing to infrastructure development, including water and electricity access that will benefit both the mine and surrounding communities. As joint mandated lead arranger, hedge provider, account bank and facility agent, Absa CIB provided a comprehensive funding and risk management solution to support the project’s delivery. The transaction brought together Absa CIB’s resource and project finance, structured trade and commodity finance, risk solutions, account bank and agency capabilities to help enable a complex greenfield mining development in a challenging funding environment. By supporting West Wits Mining in bringing the Qala Shallows Gold Project closer to production, Absa CIB continues to enable capital deployment into sectors that are strategically important to South Africa’s economy. This transaction reflects our commitment to supporting sustainable growth, job creation and long-term value creation across the mining sector. For more information, contact the Head of Mining and Metals Finance: Mpho Mofokeng https://www.cib.absa.africa/wp-content/uploads/2020/07/file_example_MP3_700KB.mp3 Related Articles DEALS Absa supports Redefine’s international growth Absa supports Redefine’s international growth through €106 million sustainability-linked financing transaction Read more DEALS Absa supports Waco Africa’s growth ambitions with strategic funding solution Absa Corporate and Investment Banking (CIB) has successfully supported Waco Africa with a comprehensive funding package designed to strengthen the group's growth trajectory and support its long-term strategic objectives. Read more DEALS Connecting African ambition to global expertise Absa CIB and UKEF Establish USD100 Million Trade Finance Programme. Absa Corporate and Investment Banking (Absa CIB) has entered into a strategic partnership with UK Export Finance (UKEF) to establish a USD100 million UKEF-backed headroom programme that will support African small and medium enterprises and corporates purchasing UK goods and services. Read more
