As global demand for minerals accelerates  – driven by the Just Energy Transition, infra-structure development and technological growth – the ability of smaller mining firms to efficiently raise capital from the market will be central to sustaining supply, advancing responsible mining and supporting broader economic development.

In this context, capital markets play a critical role in unlocking the next generation of mining projects. Market-based funding allows smaller miners to match the right type of capital to the specific risk profile, development stage  and lifespan of their assets. Structured investor profiling, combined with project-specific assessment, enables a more precise alignment between mining companies and investors whose objectives, risk appetites and ESG [environmental, social and governance] priorities are compatible.

This is where JSE Private Placements (JPP) plays a critical role in closing the funding gap by connecting high-potential private companies with institutional and private investors.

‘JPP uses a structured investor profiling framework that categorises investors by risk appetite, investment horizon and sector preferences,’ says Samuel Mokorosi, the JSE’s Head of Origination and Deals.

‘For mining, we prioritise institutional investors, such as trade players, alternative asset managers, pension funds and insurance companies, for long-duration projects. We work with private equity and specialist mining funds for capital-intensive ventures, as well as DFIs [development finance institutions] and impact investors for projects with socio-economic benefits. Our matching process considers project stage, for example, exploration vs production; capital requirements; and ESG compliance to ensure alignment with investor mandates.’

Mokorosi says investor interest typically clusters around the following types of financial instruments: equity for early-stage exploration and growth capital; convertible debt or hybrid instruments for mid-stage projects, offering downside protection with upside potential; and structured/senior debt for mature operations with predictable cash flows.

‘Recent trends indicate a growing appetite for royalty/streaming-based agreements, particularly for critical minerals. Historically, a significant share of investment interest in South African mining deals comes from global investors, driven by demand for commodities, portfolio diversification and exposure to resource-rich jurisdictions.

‘Local investors, primarily institutional players such as pension funds, insurers, family offices and HNWIs [high-net-worth individuals], account for the remaining portion, often through structured mandates or co-investment models.

‘JPP helps issuers attract both local and international investor bases by standardising disclosure to meet international reporting norms and facilitating ESG alignment to appeal to global capital pools.’

He says JPP helps mining companies navigate regulatory requirements during the capital-raising process by offering compliance checklists aligned with SA mining and financial regulations, as well as integration with legal and advisory partners for licensing, environmental approvals and exchange control compliance and investor-ready documentation templates to streamline due diligence.

Mokorosi says JPP is seeing recent trends in investor demand for certain commodities shaping capital flows into the mining sector via the JPP platform.

‘Current trends include critical minerals, such as copper, lithium, cobalt and rare earths. These are being driven by strong global demand linked to the Just Energy Transition. These trends have led to increased deal flow for battery metals and structured financing for ESG-compliant projects.

‘Other sought-after commodities include PGMs [platinum group metals] due to their use in industrial applications and, of course, gold, which is viewed as a hedge in volatile global markets.’

He says the JPP platform ensures technical, geological and financial data shared by mining companies remains secure while also meeting investor expectations for transparency.

‘JPP employs encrypted and secure data rooms for document sharing, role-based access controls to limit sensitive information exposure and audit trails and compliance monitoring to maintain transparency. This ensures confidentiality without compromising investor due diligence.’

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