Amid difficult market situations, junior coal miners in Africa face challenges in securing funding, with about 70% experiencing constraints in exploration and manufacturing owing to inadequate financing, stated coal procurement and mining improvement firm Alpha Assets and Investments CEO Selim Kaymak, citing statistics from a Mining Expertise report.
Throughout a presentation on the Junior Mining Indaba on Might 22, Kaymak mentioned the implications of a difficult coal mining marketplace for junior miners. In his presentation, he cited a Minerals Council South Africa statistic that junior coal miners are vital gamers in South African coal manufacturing, contributing as much as 30% of South Africa’s general output.
He posited that junior coal miners play an important function in assembly vitality demand and supporting financial improvement however face quite a few challenges.
“In comparison with giant, established miners, the size of operations and restricted sources could make it difficult to entry the funding wanted for enlargement and improvement . . . Collaborating with bigger coal miners may also help junior miners achieve entry to a bigger market and achieve recognition,” he stated.
Kaymak added that it was essential for junior coal miners to discover different financing choices for enlargement and improvement. This might embody partnerships with bigger mining corporations or looking for funding from personal fairness or enterprise capital companies specialising within the mining trade.
Authorities assist by way of programmes, grants or incentives may additional enhance monetary sources for juniors, he stated.
