Africa to Pilot Bond Aimed at Formalising Artisanal Mining
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A sustainability bond aimed at integrating artisanal miners into formal supply chains will be piloted this year by Canada-based advisory firm Veridicor and Zambia’s Metalex Commodities, the firms said. The proposed “stakeholder prosperity bond” is designed to professionalise artisanal miners rather than push them off land, according to Metalex finance director Rob Karpati.
The debut issuance would raise between $100 million and $200 million by year-end to help Metalex integrate artisanal and small-scale miners through regulated offtake agreements, shared infrastructure and equipment investment. The bond’s returns would be linked to predefined social and environmental outcomes rather than production output.
Potential investors include European sustainability bond funds, impact and mining investors, banks and wealthy individuals focused on sustainability, the firms said. Industrial mines would sit at the centre of each bond structure to support repayment, while interest rates would adjust according to social and environmental performance.
Metalex founder and chief executive Ayo Sopitan said the structure would allow the company to run larger programmes integrating artisanal miners into its supply chain. He said the company aims to source about 30% of its ore from trained, licensed local miners.
The model is planned for further use in Democratic Republic of Congo and Ghana. In Africa, artisanal mining often operates informally near company-run mines, affecting profits, increasing pollution and depriving governments of revenue.
