Former Gold Fields CEO Chris Griffith is leading a private equity team to raise $1bn for investments in Africa's critical minerals. Griffith, who stepped down from Gold Fields in December 2022, was approached by private equity investors looking to capitalize on the growing demand for these minerals. He is working alongside Colin Coleman, a former Goldman Sachs banker, Sam Jonah, and colleagues from Ghana and South Africa. The team is in the early stages of fundraising.
Griffith's new venture comes after his failed attempt to merge Gold Fields with Canada's Yamana Gold in 2022. The $6.7bn all-share takeover fell through due to a rival bid from Agnico Eagle and Pan American Silver. Griffith reflected on the failed deal, stating that it would have been a valuable addition to Gold Fields' portfolio. At the time, the gold price was $1,700 per ounce, now over $2,000 higher.
Since Griffith's departure, Gold Fields has made significant deals, including the acquisition of Osisko Mining for $1.58bn and Gold Road Resources for $2.6bn. The surge in gold price has helped Gold Fields' share price nearly double in value, reaching R605bn on the JSE. Griffith expressed pride in the South African mining industry's global reputation, producing high-quality professionals.
Several South African mining executives have taken on prominent roles globally. BHP appointed Brandon Craig, while Natascha Viljoen became the first female president and CEO of Newmont. Glencore and Anglo American are also led by South African executives, Gary Nagle and Duncan Wanblad, respectively. Wanblad is expected to retain his role following Anglo American's proposed merger with Teck Resources.
Griffith discussed his initial plans to retire, which were disrupted by the private equity investors' approach. He emphasized that the team is in the early stages of fundraising and is working to set up the private equity business. The team aims to capitalize on the growing demand for critical minerals in Africa.
The critical minerals market has gained significant attention in recent years due to increasing demand and limited supply. Africa is rich in critical minerals, including cobalt, lithium, and graphite. Griffith's team aims to invest in projects that will benefit from the growing demand for these minerals.
Griffith's experience in the mining industry, combined with the team's expertise, positions them well to identify valuable investment opportunities. The team's goal is to create a diversified portfolio of critical mineral assets in Africa, capitalizing on the continent's vast resources.
Key points
- Chris Griffith is leading a private equity team to raise $1bn for investments in Africa's critical minerals.
- Griffith's new venture follows his departure from Gold Fields after a failed merger with Yamana Gold.
- The team aims to capitalize on the growing demand for critical minerals in Africa, with a focus on creating a diversified portfolio of assets.
