UK-based private equity firm Appian Capital Advisory and the International Finance Corporation (IFC) have launched a $1bn (£750.72m) fund focused on the development of critical minerals and metals projects in emerging markets.
IFC, a World Bank Group member, will contribute an initial $100m to anchor the fund, with further capital expected through the IFC Asset Management Company.
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The fund, which builds on the ten-year investment collaboration between IFC and Appian, aims to support responsible mining projects that are essential for energy access and industrial growth.
It will invest in equity, credit and royalties, targeting high-impact projects in emerging markets, particularly in Africa and Latin America.
Investments will adhere to IFC’s environmental, social and governance standards, ensuring compliance with international best practices.
Appian founder and CEO Michael Scherb said: “We are proud that IFC has entrusted Appian with the management of this landmark fund. This is a strong endorsement of our ability to identify and responsibly develop high-quality assets, unlocking long-term value for our partners.
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By GlobalData“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.
“Management teams supported by the fund will now be backed by two leading institutions in our industry. We look forward to advancing this partnership to accelerate responsible and sustainable resource development globally.”
The fund’s first investment will be in the Santa Rita nickel-copper-cobalt mine in Brazil, owned by Atlantic Nickel, an affiliate of Appian.
This project, which is currently transitioning to underground production, is expected to produce around 30,000 tonnes of nickel equivalent annually over a 30-year mine life.
IFC will invest on equal terms with other investors, based on valuations by Citi and Standard Chartered.
It is IFC’s first fund partnership with a metals and mining private equity investor and the first mining-focused fund dedicated to emerging markets.
The fund will finance projects across various stages to foster economic growth and social benefits in host countries through job creation and capacity building, according to the press release.
It aligns with IFC’s mandate to promote private sector development while achieving financial returns and development impact.
IFC managing director Makhtar Diop said: “IFC is delighted to partner again with Appian on this innovative investment vehicle. Minerals are essential for building industries, creating jobs and driving economic growth.
“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.”
In April this year, Appian completed the sale of Brazil-based mining company Mineração Vale Verde to China-based Baiyin Nonferrous for up to $420m (2.99bn yuan).
