A venture set up in Abu Dhabi Global Markets, which is being backed by Abu Dhabi Catalyst Partners, plans to provided finance worth $500 million for mining projects in emerging markets within the next three to five years.
Alphastream Partners, a joint venture between two investment bankers running UK-based Portman Partners and ADCP, will provide debt and equity funding to companies developing mines for precious metals, industrial metals and rare earth elements.
"We've targeted $500m over the next three to five years both in the form of debt and equity," co-founder Prashant Francis told The National.
He did not disclose the amount of funding Alphastream Partners received from Abu Dhabi Catalyst Partners, but said the company also plans to raise debt to acquire royalties or commodities streams generated from the projects it funds. The company does not plan to finance exploration projects, focusing instead on ventures with proven reserves.
Demand for metals such as lithium, nickel and cobalt has soared in recent years due to their increased use in batteries required to power electric vehicles. If the clean energy transition develops at a pace to meet the Paris Agreement's climate goals, demand for graphite, cobalt and nickel is likely to grow about 20-25 times current levels by 2040, the International Energy Agency said in a report last month. Demand for lithium is expected to grow over 40 times.
"There is no shortage of resources worldwide, and there are sizeable opportunities for those who can produce minerals in a sustainable and responsible manner," Fatih Birol, executive director of the IEA, said.
Lithium prices are up 69 per cent so far this year and cobalt prices are up 39 per cent, but both remain below 2018 peaks.
Although companies like Canada's Franco-Nevada currently fund mining projects in return for a cut of the royalties or commodities generated, most are focused on developed markets, Mr Francis said.
"For the EV revolution to become successful, money has to go into the mining space because these minerals are going to become a bottleneck to achieving the energy transition," he added.
"Even though we are at the start of potentially a big commodity bull cycle [and] there is a lot of capital going into markets, it's still very selective. Debt financing is still relatively constrained in terms of the markets we are looking at."
Alphastream Partners will primarily focus on funding projects in Africa, Asia and South America, Mr Francis said.
Alphastream co-founder Reyhaan Aboo said that its partners plan to "build a company that sits at the crossroads of East and West".
"We see strong tailwinds for commodity markets as the global economy emerges from the pandemic lull and believe that we are well positioned to fund miners to take advantage of this opportunity.”
ADCP is a $1 billion joint venture between Abu Dhabi sovereign fund Mubadala Investment Company and New York-based investment company Falcon Edge Capital. It has been backing a number of investment firms to help them build a presence in the UAE capital's financial free zone.
“AlphaStream is another unique proposition that will further enhance the reputation of the ADGM ecosystem to act as a location of choice for innovation," James Munce, ADCP's chief executive, said.
Scoreline
Al Wasl 1 (Caio Canedo 90 1')
Al Ain 2 (Ismail Ahmed 3', Marcus Berg 50')
Red cards: Ismail Ahmed (Al Ain) 77'
Killing of Qassem Suleimani
Directed by: Craig Gillespie
Starring: Emma Stone, Emma Thompson, Joel Fry
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UAE currency: the story behind the money in your pockets
Suggested picnic spots
Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes
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Killing of Qassem Suleimani
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- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
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What are the regulations?
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Killing of Qassem Suleimani
The specs
Engine 60kwh FWD
Battery Rimac 120kwh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry
Power 204hp Torque 360Nm
Price, base / as tested Dh174,500
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Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
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Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
