The International Finance Corporation (IFC) and private equity firm Appian Capital Advisory have launched a $1 billion fund to invest in critical minerals projects across Africa and Latin America, the companies announced on Tuesday.
The fund, anchored by an initial $100 million commitment from IFC — a member of the World Bank Group — will target projects involving nickel, copper, cobalt, and rare earth elements, which are vital for clean energy and digital technologies.
This marks IFC’s first collaboration with a private mining investor, underscoring the growing interest among development finance institutions in mobilizing private capital for the mining sector.
“They’re trying to deploy more capital into our space, but it’s a very difficult and challenging sector,” said Michael Scherb, founder and CEO of Appian, noting that the firm has previously worked with IFC on rare earth and gold projects in Africa. “This is a much more formalized partnership.”
Appian, which manages about $5 billion in assets, will oversee the fund’s investments and co-invest alongside its existing and future funds. The first investment will be in Atlantic Nickel’s Santa Rita mine in Brazil — a nickel-copper-cobalt project expected to produce 30,000 metric tons of nickel annually over 34 years.
As countries and companies race to secure critical mineral supplies, the fund aims to enhance supply chain resilience and promote sustainable industrialization in developing economies.
Scherb added that Appian is also exploring the development of a downstream refinery for the Santa Rita mine in Brazil. The firm, which already produces graphite in Brazil, operates a graphite refinery in the United States that recently received a $125 million grant from the U.S. Department of Energy.
“We have expertise in both upstream and downstream operations,” Scherb said. “You could see us partnering with governments more on that basis.”
Source:Africa Publicity
