Africa Finance Corporation (AFC), a provider of infrastructure solutions, has joined Nyanza Light Metals’ $550 million, 80 000 t/y titanium dioxide pigment plant in South Africa as a codeveloper and early-stage investor.
The AFC will make an initial $3 million investment to complete project development activities that will bring the project to financial close in the first half of 2023. Production from the main plant is set to ramp up from early 2025.
Aside from its role as a codeveloper, the AFC is also a co-mandated lead arranger, alongside the African Export-Import Bank, which has co-funded the project.
Nyanza completed the first phase of the project’s construction in March, which is located in the Richards Bay Industrial Development Zone in KwaZulu-Natal. This culminated in the commissioning of the product testing and development center (PTDC) with a capacity of 700 t/y of titanium dioxide pigment.
According to Nyanza, this will be the first project of its kind in South Africa and the African continent, producing titanium dioxide pigment for international and South African manufacturers of products including paints, plastics, pharmaceuticals, and building materials.
South Africa imports almost all of its value-added titanium products despite being the world’s second-largest producer of titanium ores.
According to Nyanza, the project has received strong backing from the South African government’s Department of Trade, Industry, and Competition, which, since 2020, has co-funded the feasibility studies with the sponsors—Akein Capital Partners and DBF Capital Partners.
According to Nyanza CEO Donovan Chimhandamba, the AFC’s commitment to the project is a significant step forward in Nyanza’s commitment to developing impactful mineral beneficiation and diverse chemical manufacturing plants in Africa.
“With this investment, Nyanza will become Africa’s largest titanium value-added industrial complex. The pioneering journey of Nyanza into mineral beneficiation is a trailblazing initiative that, hopefully, will serve as a model for value addition in minerals processing across the continent “he claims
AFC senior director and project development and technical solutions head Amadou Wadda says this “landmark deal” is closely aligned with the AFC’s investment strategy, which focuses on the in-country value-accretive beneficiation of Africa’s natural resources.
“South Africa’s being one of the world’s largest producers of titanium ore makes this project a key example of moving Africa higher up the value-added manufacturing supply chain whilst creating local jobs and driving economic development on the continent,” he says.
While the 80 000 t/y main plant is being built, the PTDC’s titanium dioxide production will be offered to paint and pigment market players to test and co-develop different paint formulations based on Nyanza’s pigment quality.
According to Chimhandamba, Nyanza’s current focus is on selecting the best engineering, procurement, and construction contractor to build the main plant.
