South African mining mogul Neal Froneman has disclosed that one of the proposed joint venture units of Sibanye-Stillwater, a multinational precious metal mining group, has received a conditional commitment for a proposed loan of up to $700 million from the U.S. Department of Energy (DoE).
The unit, a subsidiary of ioneer, Sibanye-Stillwater’s proposed joint venture partner at the Rhyolite Ridge lithium/boron project in Nevada, will use the funds to support the development of the project. The loan will be provided through the DoE’s Advanced Technology Vehicles Manufacturing (ATVM) loan program to support the Biden-Harris Administration’s critical minerals strategy and domestic production of critical minerals in the United States.
In addition to Sibanye’s expected equity contribution to secure its 50-percent stake in Rhyolite Ridge, the proceeds from the proposed loan are anticipated to fund a substantial part of the preliminary project capital. The loan is the first-ever provided by the DoE to finance the processing component of a project where lithium is extracted and refined on-site.
Froneman stated that Sibanye-Stillwater is expected to contribute about $490 million in equity funding to Rhyolite Ridge, which will supply refined lithium to the U.S. auto industry, among other sectors. He stated: “The proposed loan represents a significant step towards further de-risking funding and ultimately progressing Rhyolite Ridge to production.”
“If finalized, this loan will ensure that the project can be swiftly advanced once the necessary permits have been granted and the outstanding conditions fulfilled,” the South African mining mogul added.
Froneman’s stake surges to $26 million, making him one of JSE’s richest investors
Sibanye-Stillwater is a multinational precious metal mining company with operations in South Africa. It is involved in gold and base metal mining, as well as projects in South Africa and the Americas.
Froneman, a leading South African mining mogul who played a crucial role in Sibanye-Stillwater’s growth into one of the world’s leading primary producers of platinum, palladium, and gold, holds a 0.074-percent stake in the precious metal mining group.
The market value of Froneman’s stake in the group has risen by more than nine percent since the start of the year, to R440 million ($26 million) at the time of writing this report. The surge cements his position as one of the richest investors on the Johannesburg Stock Exchange.
