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JSE Opens Doors for Critical Mineral Miners to Fund Green Energy Future

How the JSE can help critical mineral miners to fund their entry into the green energy space

by Motoni Olodun

The Johannesburg Stock Exchange (JSE) is offering a unique opportunity for critical mineral miners to access capital and tap into the growing demand for green energy solutions.

Critical minerals are essential for the development of modern technologies, such as electric vehicles, wind turbines, solar panels, and batteries. They include copper, magnesium, lithium, nickel, cobalt, rare earths, and many more.

According to the JSE business development manager Patrycja Kula-Verster, South Africa has an abundance of these minerals, both in existing mines and in unexplored or abandoned ones. She said that the JSE can facilitate capital raising for companies that want to enter or expand in the critical minerals mining space, as well as provide them with exposure to local and international investors.

In a Zoom interview with Engineering News & Mining Weekly, Kula-Verster said that the global demand for critical minerals is growing significantly, driven by the need for energy security and the transition to a low-carbon economy. She cited the example of Australia, which added four more minerals to its critical minerals list last year and created a new strategic materials list that includes copper, nickel, aluminum, phosphorous, tin, and zinc.

She said that the JSE can help companies raise capital through various options, such as initial public offerings (IPOs), private placements, follow-on equity raisings, or debt capital markets. The JSE also has a private placement platform that can assist companies that are not ready to list yet or are looking for pre-IPO funding.

She emphasized that the JSE is not only for large miners but also for junior miners who have viable projects and business plans. The JSE has deep and liquid capital markets, both retail and institutional, that can attract offshore investments as well.

She then encouraged companies to run some models look at the optimum funding sources, and determine whether an IPO makes sense or whether a private placement is more appropriate. The JSE is open to providing guidance and support throughout the process, as well as ensuring compliance with the regulatory framework.

According to Patrycja, by listing on the JSE, companies can benefit from the franchise of the 137-year-old exchange, which has a reputation for excellence and innovation. She said that the JSE is also a member of the World Federation of Exchanges and the United Nations Sustainable Stock Exchanges initiative, which promote high standards of governance, transparency, and sustainability.

She said that the JSE is committed to facilitating access to capital for critical mineral miners and established miners, and to unlocking the potential of South Africa’s rich mineral resources. This can contribute to the development of the South African economy, as well as to the global efforts to combat climate change and achieve the Sustainable Development Goals.

She concluded by saying that the JSE is ready to welcome critical mineral miners to its platform and to help them to achieve their growth and impact objectives. She said that the JSE is confident that critical mineral mining can be a game-changer for South Africa and the world and that it can pave the way for a greener and brighter future.

Source:  Mining Weekly

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