- Company name: Anglo Khula Mining Fund
- Contact telephone number: +27 11 638 4172
- Postal address: P O Box 61587, Marshalltown, 2107
- Email address: firstname.lastname@example.org
Website address: http://www.anglozimele.co.za
The Anglo Khula Mining Fund was launched as a R40 million joint partnership between Anglo Zimele, Anglo American’s black empowerment initiative, and Khula Enterprise Finance Ltd, a development finance institution established by the Department of Trade and Industry. The Fund is aimed at assisting small scale, black-owned junior mining companies with funding and technical support for high risk exploration and pre-feasibility phases of mining projects, bringing them to commercially bankable positions.
Launched in 2003, the Anglo American Khula Mining Fund is a joint initiative between Anglo American and Khula Enterprise Finance Limited, a government-owned entity that promotes small and medium enterprise development.
The fund, which focuses on promoting mining-related investments, is managed by Anglo American Zimele. It is based on an effective and replicable business model that aims to boost the South African mainstream economy and support the South African government’s initiatives by helping emerging black-owned mining operations with commercially viable prospects.
Applications to the fund must be presented in the form an investment proposal, accompanied by a
formal business plan and a thorough due diligence report of the prospect. This should be conducted
by an independent and suitably accredited consultant and may include the following:
- A reserve statement signed by a qualified geologist.
- A proposed work programme detailing the proposed drilling programme to upgrade the
- reserve classification to proven or probable status, whichever is applicable.
- A detailed mine plan, signed by a qualified mining engineer.
- An assessment of the environmental impact of the proposed operations.
- A detailed processing plan signed-off by an engineer or metallurgist specialising in the
- appropriate mineral.
- A detailed marketing plan supported by sufficient market research or agreements with agents
- or clients.
- Details of the management team, including the curriculum vitae of the individuals involved.
- A detailed financial model reflecting the mine, processing and marketing plan on a monthly basis for the first three years of operations and annual cash flows for the life of the operations.
This should include:
- major economic assumptions
- price assumptions
- identification of major cost drivers
- environmental liability provision
- tax calculations, including secondary tax on companies
- working capital movements
- financing assumptions
- A strategic plan of the company, including a proposed exit strategy for the fund and future
- fund-raising ideas.
- Details regarding the corporate structure and BEE status of the company.
The business plan
Your business plan should include:
- An executive summary
- Purpose and objectives
- Proposed financing
- The market and marketing plan
- The historical development of the company
- A description of its products or services
- Financial statements and forecasts
- Capitalisation of the firm
- Biographical sketches of key owners and employees
- Principal suppliers and customers
- Risk identification, problems anticipated and other pertinent information
- Value offering