Sibanye, led by South African executive Neal Froneman, secures $557.4-million green loan for Finnish project

Feyisayo Ajayi -

Key Points

  • Sibanye-Stillwater secures $557.4-million green financing for Keliber lithium project, advancing its commitment to clean energy.
  • ING Groep NV, European Investment Bank, and an export credit agency, with production expected in 2025.
  • Project funding highlights Sibanye’s strategic role in clean energy transition and strengthens its position in the global lithium market.

Sibanye-Stillwater, a multinational precious metal mining company led by South African executive Neal Froneman, has secured a green financing package worth $557.4 million to advance its Keliber lithium project in Finland. This milestone reflects the company’s commitment to aligning its operations with the global shift toward green energy.

The €500-million ($557.4 million) loan, obtained through Sibanye’s subsidiary Keliber Technology Oy, will be used to fund the final capital expenditure needed for lithium mining, processing, and refining facilities across Kaustinen, Kronoby, and Kokkola in Finland.

Sibanye-Stillwater secures strategic project funding

Arranged by ING Groep NV, the financing package includes contributions from a diverse group of lenders, including a tranche guaranteed by an export credit agency (ECA), funding from the European Investment Bank (EIB), and commercial bank participation. Production is expected to commence in 2025.

Neal Froneman, CEO of Sibanye-Stillwater, expressed satisfaction with the support from the diverse group of financiers, emphasizing the project’s strategic importance in Europe’s clean energy transition. “The Keliber lithium project’s funding package offers cost-effective, long-term solutions, improving liquidity and operational capabilities, showcasing its viability and ESG credentials,” Froneman said.

Neal Froneman steers Sibanye-Stillwater through challenges

Under Neal Froneman’s leadership, Sibanye has demonstrated resilience despite challenges such as job cuts, impairments, and losses. The company has solidified its position as a global leader in precious metals, with a focus on platinum, palladium, and gold. The successful green loan for the Keliber project not only ensures its future but also highlights Sibanye’s pivotal role in advancing global clean energy initiatives.

The total capital expenditure for the Keliber project is estimated at €667 million ($743.15 million), supported by a €250-million ($278 million) equity raise and an 80-percent guarantee from Finnvera, Finland’s state-owned ECA. This positions Sibanye-Stillwater to capitalize on the rapidly expanding lithium market, driven by the global transition to electric vehicles.