S&C Advises on Financings for African Mining Projects

January 10, 2020

S&C's Hong Kong office guided two sponsor clients in obtaining financing for their mining operations across Africa.

Kinross Gold secured $300 million in multi-source financing for the Tasiast gold mine in Mauritania, one of the country's largest employers and private sector contributors to government revenues. The financing was provided by the World Bank's International Finance Corporation (the IFC's largest-ever investment in Mauritania), Export Development Canada, ING Group and Société Générale. Toronto-based Kinross is one the world's largest gold producers, with mining operations and projects in Brazil, Chile, Russia, Mauritania, Ghana and the United States. “The completion of this facility underscores the attractive foreign investment climate in Mauritania,” said J. Paul Rollinson, Kinross president and CEO.

Kenmare Resources announced the signing of new secured debt facilities comprising a $110 million term loan facility and a $40 million revolving credit facility with a group of South African commercial bank lenders together with Emerging Africa Infrastructure Fund Limited. One of the leading global producers of titanium minerals and zircon, Kenmare operates the Moma titanium minerals mine in northern Mozambique. Finance director Tony McCluskey said that the new debt facilities “provide additional financial flexibility and are more suitable for Kenmare's position as an established producer.”
This latest financing marks the continuation of a longstanding relationship between Kenmare and S&C. S&C acted as international legal counsel to Kenmare on its initial project financing for Moma in 2004 and on several significant matters thereafter.

Hong Kong-based partner Jamie Logie led the S&C teams in Hong Kong, London and New York for both matters, which included Silvia Brünjes, Sean Ruscitto, Angus Hayhow and Andrew Thomson for Kenmare, and Benjamin Kent, Michelle Vickers and Louis Grandjouan for Kinross.