BUSINESS REPORTER
Africa’s leading infrastructure solutions provider Africa Finance Corporation (AFC) will invest US$3m in Nyanza Light Metal’s 80,000tpa titanium dioxide pigment (TiO2) plant in South Africa.
The investment, which makes AFC a co-developer and early stage investor, will go towards the completion of the project development activities that will take the US$550 million project to financial close in the first half of next year.
Nyanza’s CEO Donovan Chimhandamba said his company was “, delighted” to have AFC come aboard “our flagship project”, a milestone that supports commitment to developing an impactful mineral beneficiation and diversified chemicals manufacturing plants on the continent.
“This investment sets up Nyanza as Africa’s largest titanium value addition industrial complex. Nyanza’s pioneering journey into mineral beneficiation is a trail blazing initiative that will hopefully be a model for value addition in minerals processing across the continent,” Chimhandamba said.
In addition to its role as a co-developer, AFC is also a co-mandated lead arranger alongside the African Export- Import Bank who has co-funded the project.
The project, in Richard’s Bay Industrial Development Zone in KwaZulu Natal Province has received strong support from the South African government through its Department of Trade Industry and Competition (DTC), given its high socio-economic impact. Since 2020, the DTC has co-funded the feasibility studies with the sponsors, Arkein Capital Partners and DBF Capital Partners. Athari Capital Partners also acted as the lead transaction advisor to Nyanza Light Metals.
AFC’s senior director and head of Project Development and Technical Solutions, Amadou Wadda said, “AFC is proud to be part of this landmark deal for South Africa and Africa as it is closely aligned with our investment strategy which focuses on the in-country value-accretive beneficiation of Africa’s natural resources.”
He said South Africa being one of the world’s largest producers of titanium ore and this makes the project a key example of moving Africa higher up the value-added manufacturing supply chain while creating local jobs and driving economic development on the continent.
South Africa is the world’s second largest producer of titanium ores but imports almost all its value-added titanium products.
In March 2022, Nyanza completed the construction of the first phase of the project. This culminated in the commissioning of the Product Testing and Development Centre with a capacity of 700tpa of titanium dioxide pigment.
The centre’s production will be offered to paint and pigment market players to test and co-develop different paint formulations based on Nyanza’s pigment quality while the 80,000tpa main plant is being constructed.
“Financial close for the US$550m main pigment plant is expected to be achieved in the first half of 2023 with production from the main plant to ramp up from early 2025. Nyanza’s current focus is on appointing the right EPC contractor to construct the main plant.” Chimhandamba said.
