DUBAI, UAE, November 21, 2013 /PRNewswire/ —
· Natural resources industry looking to GCC for investment
· Two key investment opportunities include independent bauxite projects in Guinea and gold projects in Ethiopia , Burkina Faso and Tanzania .
· Dubai is one of the most important global trade hubs for diamonds, gold and precious stones
As Middle Eastern and African nations are currently witnessing significant investments in infrastructure development, there is a boost in the demand for metals including aluminium, iron, copper and nickel among others. According to a report from Pricewaterhouse Coopers, the value of ongoing infrastructure projects in the region is valued at over US$2.62 trillion.
In addition, there is also sustained demand for diamonds, gold and precious stones, with Dubai serving as one of the important global trade hubs. While gold trade was valued at US$70 billion in 2012 and is expected to cross US$100 billion this year, diamond trade too has gained significantly over the years and was valued at over US$40 billion last year.
With the current downturn in the capital markets, the paradigm to finding access to capital has moved towards emerging markets like the Middle East which has some of the most resilient, entrepreneurial, dynamic and liquid investors.
Pella Resources Limited, headquartered in Guernsey, a possession of the British Crown is an African-focused natural resources and energy group which has a strong track record in exploration and mine development. Early last week they signed an agreement with Naru Capital. to access GCC-based investors. They will be working together on two key projects in the coming months.
Alufer Mining is developing an advance stage bauxite mine in Guinea. The bauxite market has been transformed in recent years, with China increasing global refining capacity by almost 50% since 2006. The result has been a substantial increase in bauxite demand and rising prices. Alufer’s project is just 15km from the coast, and with low capital and operating costs, and under 2 years for construction is well positioned to capitalise on the changing market fundamentals. Targeting first production in 2015, Alufer aims to be a significant bauxite producer, delivering strong cash flows in the short term and drawing maximum benefit from the buoyant bauxite market.
Another affiliate company Aurigin is exploring and developing new gold districts in Africa. Aurigin owns gold exploration licenses in Tanzania, Burkina Faso and 2 large, high potential exploration blocks in Ethiopia, one of which is in a joint venture with a Major Gold producer. Aurigin is also targeting other pre-production projects for acquisition in the near term.
Adonis Pouroulis, Founder for Pella Resources said “ We are excited to work with Naru Capital in bringing solid investment opportunities to GCC investors. As a group we have built up a track record with certain GCC investors in executing mining projects and we are now seeking to expand our cooperation with the region. The opportunities will be aimed at building on the natural affinity between the GCC and Africa and will seek to bring investment opportunities to the region in a structured and risk-managed manner. “
Ben Smit, Pella Executive Director said “We have worked with Naru Capital and Naseba on several occasions over the past 2 years, from investor events to now entering agreements on GCC road shows. We have been impressed by the focussed and professional manner in which each initiative has been executed and we look forward to further successful collaborations not only with Naru but also with a fast growing GCC investor community.
“We are proud that one of the leaders in natural resources in Africa, Pella Resources has engaged us to organise a private investor road show in Saudi Arabia promoting the jewel of opportunities they have access to.” explained Naru Capital, Director, Fabien Faure.
“Having enjoyed a working relationship with Pella for the last two years resulting in several successful investor meetings, Pella engaged us further. Because of Pella’s extensive reach in Africa and the high level relationships they have with the related governments, Pella’s partnership with Naru capital will help the company meet investors in the Middle East.”