Finance Will Be Available for Sound Mining Projects

Source:

Top mining banker Don Newport of Standard Bank said that the following factors affected the availability of finance, but that it was still available for those which met some increasingly strict banking criteria: Political Risk; Funding Mix; Resource and Reserve credibility; Commodities prices; Cost criteria (capital and operating) and perceived infrastructure needs affecting the ultimate viability of the project.

Speaking at a Mining Finance Masterclass, organised by MinSouth, the AMA and corporate lawyers Simmons & Simmons yesterday in London, top mining banker Don Newport of Standard Bank gave a good sized audience the benefit of his views on the current lending and debt situation facing the mining sector. While he pointed to difficult times ahead he did see some light at the end of the tunnel. Standard Bank is one of the few banks which specialises in the natural resources sector as one of its key areas of interest so Newport's views carry particular weight.

"The reality is how banks see things." Said Newport in his introduction and then pointed to a number of reports on projects being cut back and put on hold (using a series of quotes from recent Mineweb articles as examples), which he reckoned were sowing the seeds for the next bull market.

He said that the following factors affected the availability of finance, but that it was still available for those which met some increasingly strict banking criteria: Political Risk; Funding Mix; Resource and Reserve credibility; Commodities prices; Cost criteria (capital and operating) and perceived infrastructure needs affecting the ultimate viability of the project.

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