/ 3 May 2004

Mining sector gets $25m BEE boost

International industrial development group Florence Worldwide Finance (FWF) on Monday announced the launch of a $25-million programme aimed at helping black economic empowerment (BEE) companies to acquire and develop mining assets throughout South Africa.

”We expect that many BEE companies operating in the mining sector will be very interested in FWF. In addition to providing the financial backing they need to acquire and develop mining ventures, we also offer considerable financial, engineering and project management expertise,” FWF CEO Barak Lefler said.

FWF is a full partner in all the ventures it supports, providing assistance in finance, construction, operation and marketing. Typically, project development costs and capital expenditures are entirely covered by FWF, in exchange for a stake in the project.

Lefler added that FWF seeks to buy into existing BEE-owned mining enterprises, which need financial and project management support to expand their operations.

”In other cases, FWF may acquire mining assets from non-BEE owners, and bring in one of its BEE partners under preferred financial terms.”

FWF is an international industrial development company focusing on mid-scale industrial enterprises in the energy, mining, metallurgy and chemical industries. It focuses on mining assets that have completed extensive geological works and have proven reserves. The company does not require completed bankable feasibility studies. – Sapa