RMB Namibia continues to promote economic sustainability through strategic investments in mining and green hydrogen.
RMB Namibia, a leading Namibian bank, is continuing to invest in the country’s mining sector, and is exploring various investment opportunities, according to reporting by Chamwe Kaira of the Windhoek Observer. These include extending the life of mines, private power projects, and capital equipment replacement. According to Jason Shikalepo, Head of Investment Banking at RMB Namibia, the bank has been supporting the mining industry since its inception, providing essential banking, funding, and risk management services to numerous mining operations in Namibia.
Diverse commodity investments
Shikalepo highlighted the bank’s involvement in financing mining operations across a range of commodities, saying, “In recent years, we have arranged and funded mining operations involved in diamond, uranium, gold, and zinc commodities, to mention but a few.”
Pioneering green hydrogen projects
In addition to traditional mining investments, RMB Namibia is also taking a leading role in facilitating green funding solutions for the burgeoning green hydrogen industry. Recognizing the significant economic opportunities presented by green hydrogen, “We continue to partner the various hydrogen players to co-create funding solutions suitable for the different phases of project development”, said Shikalepo.
The economic impact of mining investments
Understanding the critical role of the mining sector in Namibia’s economy, RMB Namibia is dedicated to ensuring the economic sustainability and global competitiveness of the country’s mining assets. Shikalepo underscored this commitment by stating, “We recognise the significant economic importance of the mining sector to the Namibian economy and society, as such take very seriously our role in ensuring the economic sustainability and global competitiveness of Namibian mining assets.”
Major investment in QKR Navachab Mine
RMB Namibia recently extended a significant syndicated loan to QKR Navachab mine, facilitating a US$155 million loan for the mine’s expansion. As the initial mandated lead arranger, underwriter, and coordinator, RMB, in collaboration with syndicate banks, is providing funding for expansion capital equipment, working capital, and risk management solutions. These efforts aim to de-risk the mine’s future operations and scale up its gold output significantly.
Enhancing economic sustainability
The multifaceted solution offered by RMB is crucial for the critical ramp-up of mining and processing activities at QKR Navachab mine. This expansion is expected to make a substantial contribution to Namibia’s economic sustainability. Beyond financing, RMB and the banking syndicate are also providing risk management solutions to optimize the mine’s exposure to commodity prices, currency fluctuations, and major operating expenses.
“This deal stands out as one of the largest resources transactions structured and executed by a Namibian financial institution. It underscores RMB’s ability to deliver complex, market-leading solutions bringing together stakeholders from across the financial ecosystem fostering shared prosperity for our clients and the communities in which they operate,” Shikalepo remarked.
Supporting local economies
By enabling the expansion of Namibia’s second-largest gold mine, RMB is reinforcing its commitment to the economic sustainability of the Karibib region. Extending the mine’s lifespan will secure jobs and provide vital support to numerous small- and medium-scale enterprises operating in the area.
RMB Namibia’s strategic investments in mining and green hydrogen projects exemplify its dedication to fostering economic growth and sustainability in Namibia, ensuring long-term benefits for the nation’s economy and its people.
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