Confirmed this week — 2015 was a record year for natural resource investment. With data from private equity analysts Preqin showing that resource funds raised $63 billion during the past year.
And this week we got news about two more big sources of funding for mining and energy projects.
The government of Oman led things off — announcing plans for a new fund to invest in the mining industry.
Oman sovereign wealth vehicle, its State General Reserve Fund will cooperate with other state funds and private investors to create the new fund, officials reported. With the venture to be called Mining Development Oman, having total capital of $260 million — making it a sizeable venture. Related: Petro Currencies Under Fire As Oil Keeps Sliding
Officials said the fund will look to take partial stakes in mining projects. And that it will consider investments on a local, regional, and international scale — suggesting we could see this strategic investor popping up worldwide.
And that wasn’t the week’s only good news for resource developers. With China also announcing the start-up of a major new fund — this one aimed at energy and infrastructure investments.
Government agency China Insurance Regulatory Commission announced Tuesday that 27 insurance companies across China, along with 15 asset management firms, have combined investments to create the new fund — known as China Insurance Investment Ltd. Related: Saudi Arabia Throws Down The Gauntlet, But To Whom?
The fund has big capital — having reportedly raised $6 billion as part of its launch. And it’s already starting to deploy this cash, taking a stake in Russia’s Yamal liquefied natural gas (LNG) project.
No details were given on how much the fund is contributing to Yamal or what share of the project it will receive — but the deal shows that the new vehicle is moving fast in making investments.
The fund was said to be focusing specifically on “overseas assets”, with regulators noting it will also help finance port projects in Sri Lanka, Turkey and Djibouti. Regulators also said the fund might take stakes in clean energy projects.
All of which is worth noting for resource developers in a variety of sectors worldwide. There’s always money somewhere — for the right projects.
Here’s to following the cash
By Dave Forest
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