Johannesburg, South Africa — MININGREVIEW.COM — 20 April 2010 – Pallinghurst Resources “’ the Channel Islands-based company listed on the Johannesburg and Bermuda stock exchanges “’ is on a fund-raising roll, with Dutch pension manager Algemene Pensioen Groep (APG) the latest to come on board.
Reporting this development from here, miningmx.com says APG has committed US$250 million (R1. 875 billion) to Pallinghurst for investments in its projects in the South African mining sector, of which US$50 million (R375 million) is earmarked for platinum subsidiary Platmin.
This follows the recent decision by Singapore sovereign wealth fund Temasek to commit US$100 million (R750 million) to Platmin, as well as a further US$50 million (R373 million) in Platmin’s upcoming equity placement.
Miningmx.com reports that the importance of the investment was underscored by the presence of Minister of Economic Development Ebrahim Patel Pallinghurst press conference.
Pallinghurst CEO Arne Frandsen commented: “This money is being committed to us for investment in a number of mining ventures in South Africa. We have given APG no guarantees on likely returns and the money has been committed for a minimum of 10 years. This is long term money that cannot be swiftly removed from the country,” he pointed out.
“APG is responsible for managing the money of some four million Dutch pensioners and workers, so its decision to invest in South Africa despite various recent negative headlines is highly significant,” Frandsen continued.
Patel described APG as a “typically prudent Dutch investor” and was encouraged by the fact that it had decided its money was safe in South Africa.
Frandsen added that APG’s decision had also been taken against the background of the debate over possible nationalisation in the South African economy. “It was not seen as a threat because South African government policy is very clear in respect of nationalisation,” he commented.