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Natural resources industry eyeing GCC investors

Dubai, November 25, 2013

With the current downturn in the capital markets, the paradigm to finding access to capital for investment in Aftrica's natural resources has moved towards emerging markets like the Middle East which has some of the most dynamic investors, said experts.

As Middle Eastern and African nations are currently witnessing significant investments in infrastructure development, there is a boost in the demand for metals including aluminium, iron, copper and nickel among others, they stated.

According to a report from Pricewaterhouse Coopers, the ongoing infrastructure projects in the region is valued at over $2.62 trillion.

In addition, there is also sustained demand for diamonds, gold and precious stones, with Dubai serving as one of the important global trade hubs, said experts.

While gold trade was valued at $70 billion in 2012 and is expected to cross $100 billion this year, diamond trade too has gained significantly over the years and was valued at over $40 billion last year, they added.

Pella Resources, headquartered in Guernsey, a possession of the British Crown, is an African-focused natural resources and energy group which has a strong track record in exploration and mine development.

Early last week they signed an agreement with Naru Capital to access GCC-based investors. They will be working together on two key projects in the coming months.

Alufer Mining is developing an advance stage bauxite mine in Guinea. The bauxite market has been transformed in recent years, with China increasing global refining capacity by almost 50 per cent since 2006. The result has been a substantial increase in bauxite demand and rising prices.

Alufer's project is just 15 km from the coast, and with low capital and operating costs, and under two years for construction is well positioned to capitalise on the changing market fundamentals.

Targeting first production in 2015, Alufer aims to be a significant bauxite producer, delivering strong cash flows in the short term and drawing maximum benefit from the buoyant bauxite market.

Another affiliate company Aurigin is exploring and developing new gold districts in Africa. Aurigin owns gold exploration licences in Tanzania, Burkina Faso and two large, high potential exploration blocks in Ethiopia, one of which is in a joint venture with a major gold producer.

Aurigin is also targeting other pre-production projects for acquisition in the near term, it added.

Adonis Pouroulis, the founder for Pella Resources said: "We are excited to work with Naru Capital in bringing solid investment opportunities to GCC investors. As a group we have built up a track record with certain GCC investors in executing mining projects and we are now  seeking to expand our co-operation with the region."

"The opportunities will be aimed at building on the natural affinity between the GCC and Africa and will seek to bring investment opportunities to the region in a structured and risk-managed manner," he added.

Pella executive director Ben Smit said the group has worked  with Naru Capital and Naseba on several occasions over the past two years, from investor events to now entering agreements on GCC road shows.

"We have been impressed by the focussed and professional manner in which each initiative has been executed and we look forward to further successful collaborations not only with Naru but also with a fast growing GCC investor community," stated Smit.

On the tieup, Naru Capital director Fabien Faure said: "We are proud that one of the leaders in natural resources in Africa, Pella Resources has engaged us to organise a private investor road show in Saudi Arabia promoting the jewel of opportunities they have access to."

"Having enjoyed a working relationship with Pella for the last two years resulting in several successful investor meetings, Pella engaged us further. Because of Pella's extensive reach in Africa and the high level relationships they have with the related governments, Pella's partnership with Naru capital will help the company meet investors in the Middle East," he added.-TradeArabia News Service




Tags: GCC | investor | natural resources |

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