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RCF Sponsors AICD in Support of Board Diversity

RCF proudly announced the sponsorship of Australian Institute of Company Directors (AICD) Western Australia’s 2019 Director Pipeline Program (DPP) at the 2018 DPP Wrap Reception held in Perth on 6 September 2018.  Launched in 2011 by the West Australian Division of the AICD, the DPP aims to create a pipeline of “board-ready” executive women in the WA business community, and to complement AICD’s national board diversity initiatives.

The program runs from February to September each year and provides the opportunity to extend networks with other senior executives and directors, raise their profiles through exclusive events and functions, and attend a range of workshops and professional development programs.  The 2018 participants included 44 women from a wide range of organisations, industries and backgrounds.

Barbara Gordon, RCF’s co-Legal Counsel, Australia spoke at the reception about RCF’s encouragement of diversity at the board level of WA companies.  As of 6 September 2018, 38%[1] of RCF’s ASX listed investments have women on their boards, including one in the role of Chair.  This compares favourably to 21.7%[2] of ASX All Ordinaries boards having women directors as at 30 June 2018.  Globally, 27%[3] of RCF’s investments have female directors.

“This diversity and strengthening of board skill sets is something RCF has been actively working on and we continue to be open to ideas that will help us to identify talent for our portfolio company boards.“ said Ms Gordon.

 

AICD released a Gender Diversity Progress Report[4] on 7 September 2018 indicating the boards of Australia’s largest companies are drawing closer to achieving 30% female representation by the end of 2018.

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Caption: 2018 Director Pipeline Program Wrap Reception held in Perth on 6 September 2018

[1] Source: RCF internal data, 6 September 2018

[2] Source: AICD website, 7 September 2018

[3] Source: RCF internal data, 6 September 2018

[4] Source https://aicd.companydirectors.com.au/advocacy/board-diversity/gender-diversity-momentum-continues-asx-200-boards

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Alufer Mining Ltd’s Bel Air Project – Strengthening Long-Term Community Development

Resource Capital Fund VI L.P. is an investor in Alufer Mining Ltd, a private company nearing the completion of construction at its Bel Air bauxite project in the Republic of Guinea. This video, which was funded by the International Finance Corporation and directed by a young African film producer, highlights the strategic partnerships which have been developed between Alufer and local communities to develop skills and sustainable businesses which aim to strengthen long-term community development.

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Interview with RCF Partner and General Counsel, Cassie Boggs

Cassie Boggs is the General Counsel at RCF. Cassie joined in January 2011 and is responsible for all legal matters involving RCF and all of its funds.

I joined RCF, succeeding its first General Counsel, Brian Dolan, to manage all the legal matters related to the management company and all of our funds. I am the head of the legal department which comprises eight people: five in Denver and three in Perth. In Denver, we have a Staff Counsel, the Chief Compliance Officer, a Compliance Analyst, an Executive Assistant for the whole group, and myself. In Perth, we have two senior lawyers who act as Legal Counsel, Australia, in addition to a EA/legal assistant.

As RCF is a Registered Investment Advisor, it is governed by US securities laws. Therefore, RCF needs a compliance function, and this is a function that continues to grow.

The Staff Counsel, Matt Thompson, and I predominately work with the deal teams out of North & South America, while investment work for deals generated out of our Australian office is the responsibility of the Australian Legal Counsel. As lawyers, we are involved in all of RCF’s investment deals, including assisting with legal and country due diligence, documenting the deals, and negotiations when required.

We have worked on a number of large deals, and a big part of my job has both a legal and business component to it.  In addition, the legal group assists the finance, tax, HR and the COO on a variety of matters affecting the management company.

Cassie has a specific focus on country due diligence, political risk and corruption risks. She works hand in hand with the investment teams in these areas.

In addition to assisting the investment teams with legal due diligence, I also assess and assist in managing political and corruption risks, in part because of my background.  I lived and practised law in a variety of jurisdictions, including Kazakhstan, Pakistan, Indonesia, London and Tanzania, so I have had practical experience in those and surrounding countries in identifying and assessing the types of risks that have the potential to impact our funds’ investments and RCF’s reputation.

Cassie was previously an international partner at the law firm of Baker & McKenzie, where she worked in the firm’s San Francisco, Almaty, Kazakhstan, and Chicago offices. She travelled extensively for work as her professional career has had a specific focus on the global natural resources sector.

Over the last 35 years, I have had the opportunity to work on a lot of natural resources related transactions all over the world, which has been a great job for a girl from Aurora, Colorado who thought her law practice was going to be focused only on the American West. I am a fifth-generation Coloradoan, and since Colorado has a long history of mining, it was very natural for me to start working within the natural resources space with a particular interest in mining. I was a partner at Sherman & Howard in Denver where I began my career before moving to Baker McKenzie, an international law firm with offices all over the world. The company asked me to assist with the opening of its office in Almaty, Kazakhstan in 1994, since much of the anticipated work would be for mining and oil and gas clients. From Kazakhstan, I then worked in Indonesia. Both Indonesia and Kazakhstan were big mining jurisdictions.

During my time at the firm, I learned a lot about different legal systems outside of North America, where the majority of business is done by the relationships people have as there is often no independent judicial system that people trust and the words in a contract are not necessarily always upheld. Therefore, my experience taught me a great lesson in understanding how people do business around the world.

After Baker & McKenzie, in 2005 Cassie joined Barrick Gold Corporation, moving from a lawyer role to a business role.

After Baker & McKenzie, I joined Barrick Gold as Vice President, Corporate Development, where I moved from a legal role to a business role. I was brought into their Corporate Development group to facilitate transactions, but my work expanded to assisting in the management of acquisitions and certain of the company’s assets.

When I was at Barrick Gold, we took over Placer Dome, and that’s when the firm became the largest gold company in the world. This was a huge transaction and a fascinating one.

I was also involved in negotiating agreements with the Government of Pakistan, and at one point, I was the CEO of our Pakistan Joint Venture, trying to develop a mining project, so I spent a year in Pakistan, living in Islamabad.

Back then, Barrick Gold was winding up its African assets to list them into a separate company. So for a period of time, I was the regional head of the African business unit, and from there I helped put together the listing of what became African Barrick Gold, now Acacia Mining. After that, I was its first General Counsel before I moved to Toronto, and then subsequently back to Denver.

Cassie joined RCF after having spent many years abroad, and the firm has grown significantly since she first joined.

My encounter with RCF was through Brian Dolan who was the previous General Counsel, and who introduced me to James McClements.

I was attracted to the firm as I saw private equity as a very interesting sphere. Private equity has transformed the resources sector by offering a new opportunity to raise capital in a different way than offered by banks.

RCF has more than doubled in size since I joined the firm. When I started, there were approximately 20 people in the Denver office and less than 50 people worldwide, while now there are over 50 in North America and more than 90 globally. Since I came on board, we have added an office in Santiago, and an office opened just before I joined in Toronto. So, in a relatively short space of time, RCF went from having three offices to five.

After many years abroad, Cassie was keen to get back to Denver.

Working at RCF was a chance for me to also come back to Denver after almost 20 years, which is where I am originally from.

I am a skier and an outdoor person, I love Denver’s weather, it has four seasons. The city is the right size, and it’s where I grew up. I’ve lived in a lot of great places, so when I thought of the place where I wanted to settle, Denver was home.

Cassie has an undergraduate degree (Economics) and a law degree from the University of Denver and a Masters degree in Resource Development from Michigan State University. Cassie is also a recipient of the prestigious Thompson G. Marsh Award from the University of Denver.

In the United States, you have to gain a four-year university degree before going into law. Afterwards, it’s three years of law school. My undergraduate degree was in Economics.

In November of last year, I was awarded the Thompson G.Marsh Award from the University of Denver. This was a great honor as it recognizes a law school graduate for their accomplishments. I am proud to be the first woman to receive this recognition.

Women in leadership positions

When I started practising law, 50% of the people I went to law school with were women. Not all of those people become partners in law firms, and there is a much smaller percentage of women who become partners in law firms. Certainly, in the mining and natural resources industry, you don’t come across as many women as you would in other fields. By the same token, when I practised in Indonesia most of the law firms were run by Indonesian women. While even Pakistan, which doesn’t have a society where women are at the forefront, appointed a woman Prime Minister earlier than many other countries in the world did. You don’t see as many women in the mining field, but personally, this has created a lot of opportunities for me.

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Blast Movement Technologies wins 2017 Premier of Queensland’s Export Award

Blast Movement Technologies wins 2017 Premier of Queensland’s Export Award

Blast Movement Technologies (BMT), a joint investment of Resource Capital Fund VI L.P. (RCF VI) and Jolimont Global Mining Systems, has won the 2017 Queensland Export Award (Minerals and Energy category). This marks the fourth consecutive year that BMT has won the prestigious award, recognising excellence in export and innovation.

Blast Movement Technologies was introduced to RCF via the relationship with Jolimont, and has been part of RCF VI portfolio since 2015.

Resource Capital Funds is proud of BMT’s performance, and considers the award an endorsement of BMT’s and Jolimont’s efforts in marketing the technology.

The award highlights the importance of innovative technology blasting solutions to optimizing processes while reducing ore loss and dilution. RCF is proud to support a technology which directly benefits the mining industry.

“It is a surprise and honour to be recognised again for our innovation and export focus”, said Jacques Janse, CEO of Blast Movement Technologies. “In 2017 we expanded our teams in Africa and the Americas. A new sales and support office in Accra (Ghana) enables us to better support our customers throughout Africa. We have also increased the number of consultants in the Americas and expect to see a growth in our customer base in 2017/18.”

https://www.tiq.qld.gov.au/awards/winners/2017-export-award-winners/

 

About BMT

Blast Movement Technologies (BMT) helps resource companies significantly increase ore yield and minimize dilution through a unique solution that accurately measures 3-dimensional blast movement.

BMT’s blast movement monitoring (BMM) system is designed and manufactured in Brisbane and exported to customers throughout Australia, Africa, Europe, North and South America.

BMT works with the top nine gold producers and the top three, Barrick, Newmont and AngloGold Ashanti, have adopted the BMM system as their corporate standard for grade control. The BMM System has been fully implemented at more than 80 mines, in 34 countries, for use in all commodities, including copper, gold, iron ore, nickel, platinum, silver and zinc.

www.bmt.com.au/

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Caption: Blast Movement Technologies’ Brisbane team were winners at the 2017 Premier of Queensland’s Export Awards

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Alufer Mining rapidly advancing the Bel Air project in Guinea

Alufer Mining rapidly advancing the Bel Air project in Guinea

Alufer Mining Ltd. is an independent private mineral exploration and development company headquartered in London, with significant bauxite assets in the Republic of Guinea, in West Africa. Bauxite is the main commercial mineral from which aluminium oxide is extracted, which in turn is smelted to form aluminium metal. The company is focused on the development of the Bel Air project, which is expected to commence production in 2018. Significant capital has been invested in exploration since January 2011 and substantial work programmes have been identified both at Bel Air and at Labé, which was Alufer Mining’s original bauxite asset.

The mining industry in Guinea accounts for over 70% of the country’s exports (African Business Magazine, March 2017). Guinea has deposits of bauxite, iron ore, gold, and diamonds all with significant geological potential. Guinean bauxite reserves contribute to 94% of Africa’s reserves and 25% globally. Bauxite from Guinea has certain qualities which make it useful to Chinese refineries. Medium and long term bauxite demand is high, driven by growth in key sectors including transportation, construction, and consumer products.

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RCF Involvement

RCF has built a strategic partnership with Alufer Mining. RCF’s Fund VI was originally approached by Alufer in May 2011 for funding to conduct exploration on Bel Air, but declined due to the early stage of the project. RCF kept in contact with the Company over the next two and a half years and began to look seriously at the Project again in Q4 2013, upon the completion of its 2013 Feasibility Study. In 2013, the original management team of Alufer Mining approached RCF representative, Mike Price, in London with an intriguing project proposal. RCF was extremely interested in this project for a variety of reasons. Firstly, RCF believed the envisioned project in Guinea would have a lot of material to offer, aside from having potentially one of the biggest bauxite resources in the world. Secondly, RCF identified that the Bel Air project had an attractive logistical advantage. Generally, the majority of bauxite deposits are inland. However, the Bel Air project was unique in that it is located right on the coast. Thirdly, the deposit was of a good quality, therefore from a mining perspective, RCF believed it would be relatively easy to mine and anticipated it also could be easily exported straight away. In conducting its initial due diligence RCF identified that the company first needed to complete fundamental work to get to a satisfactory feasibility study, followed by the actual construction of the project.

As such, RCF became a key financier of the construction of the Bel Air project through its initial November 2015 investment in Alufer via a $10 million bridge loan funding completion of the Definitive Feasibility Study (“DFS”) of the Project.  After the company’s early 2016 completion of the feasibility study, RCF further extended the bridge loan and an additional $4 million was provided to the Company in September 2016.

Successful completion of project financing was completed in December 2016 in collaboration with the finance institution Africa Finance Corporation (AFC), and with specialist mining investor, Orion Mine Finance.  After significant negotiations with the Company led by RCF, a project financing package was agreed upon by the investment groups to provide US$110.0M in a combination of equity and convertible debt.

Construction activities commenced in 2017, resulting in the growth  from 15 employees to 1000 employees – over an estimated 15 month construction period.

At present, along with its ongoing financial assistance, RCF continues to assist in the facilitation of new appointments to the Company’s management team and governance committees to strengthen the expertise required for the ongoing work to fast track the project. As part of the financing package, RCF developed an independent board of directors and three separate committees:

  • The first committee is the Project Development Committee, which is chaired by RCF’s Allan Brownrigg, and oversees the construction and monitors the contractors, ensuring the project is on time and on budget.
  • The second committee is the Environmental, Social and Governance (ESG), chaired by RCF’s Allison Forrest. Community relations are fundamental as the project employs many local people and the Government of Guinea also being a major shareholder in the project.
  • The final committee is the Marketing Committee, encompassing the process of setting the offtake agreements for the purchase of materials, which is chaired by RCF’s Mason Hills.

 

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The significance of the project in Guinea

This project is very significant for the Guinean Government, who holds a 25% stake in the mine. The project is a milestone that will contribute to the development of the mining sector in Guinea, helping create around 3,500 direct and indirect jobs during its construction phase. Alufer Mining plans to extract bauxite using surface equipment that limits the negative impact on the environment and local communities; and transport will be undertaken with trucks to be loaded onto barges that deliver to vessels at sea.

The $205 million deal is one of the largest foreign investments in the country since the 2014 Ebola crisis.

The project is anticipated to be completed in September/October 2018. It has a nameplate capacity of 5 million tonnes per annum but can be easily scaled to 10 million tonnes per annum. It is one of the major projects of the Guinean Government and is of national significance, both in terms of the employment and community benefits it brings to the country.

RCF conducted significant risk work and took due diligence measures with the project. In 2014 the largest outbreak of Ebola hit multiple countries in West Africa, with Guinea, Sierra Leone and Liberia suffering most. Furthermore, Guinea historically had a reputation for corruption that had pervaded, in particular, the mining sector, as evidenced the international scandal involving the Simandou Project.  RCF General Counsel Cassie Boggs and RCF representative Mike Price first visited Guinea in May 2014 to conduct preliminary country due diligence in an effort to assess country risk. While in the country, RCF met with Ambassadors from the US, UK, South Africa, the Guinean Minster of Mines, Deputy Chief of Staff to the President, Mining Advisor to the President, the IFC, and along with other Guinean governmental, international-affairs, and business representatives. In parallel, RCF also engaged a London based law firm with significant experience in West Africa and Guinea to assist in certain legal due diligence, and a political risk consultant with extensive experience in Guinea to review and update political risks, conduct inquiries and to consider certain specific issues regarding the application and enforcement of environmental standards and regulations in Guinea, corruption issues, and issues of general political stability.

After the conclusion of its diligence, RCF was pleased to find that President Conde and Minister of Mines Kerfalla had demonstrated decisive governmental leadership in combating corruption, by requiring an unprecedented level of transparency in regards to the review and issuance of mining licenses, including the publication of all mining agreements on the Internet. RCF continues to monitor the country’s anti-corruption climate along with Alufer’s actions in Guinea through internal due diligence and third party consultants to ensure it maintains its strict procedures and complies with all local and international laws.

In February 2016, the Guinean Government and Alufer Mining signed the Mining Convention for the Bel Air bauxite project, and in his address, Prime Minister of Guinea Mr. Mamady Youla, commented “Efforts since 2010 to boost economic activity in developing countries have ended up paying off and the signing of the bauxite project Bel Air is a good example. This is a strong signal to the international community and investors. After two years of courageous struggle against Ebola, the fight against the epidemic is finally won, and the development of Guinea can resume vigorously”.

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Interview with RCF Partner and Investment Team Leader, Mason Hills

Mason Hills is a Partner and Investment Team Leader at RCF. Mason is originally from Perth, Western Australia, and started his career in law

I studied economics at the University of Western Australia before going on to do a graduate law degree at Murdoch University.

After graduating, I went to work for a commercial law firm focused on practicing in corporate and securities law, and project financing, in the resources sector. While I was there, I spent a year working at the Federal Court of Australia as an associate to a Judge. When I returned from working with the Judge, I continued my career in the project finance section of the law firm until 1999.

In 1999, myself and one of the partners of the law firm at the time, decided to start our own practice with a focus on project finance, and we acted predominantly for borrowers and smaller lenders.

Mason has advised RCF since 1999 and joined in an in-house capacity in 2006

In 1999, a year after RCF’s founding and the launch of its first fund, RCF I, the organization was actively pursuing investments in Australia. I already had a relationship with some of the principals of RCF from my previous firm, so when they required legal work in Australia, it was a natural fit. So from 1999 until 2006, I worked as outside counsel for RCF.

In 2006, I joined RCF as their in-house lawyer in Australia. While my role was primarily legal work, my prior business relationships and established contacts in the Australian mining industry started to approach me about potential investment deals RCF could become involved with, and I found myself actively involved in leading transactions rather than doing pure legal work.

I was fortunate to be made a partner in 2009, and my focus changed dramatically from legal work to managing investments and the investment process.

Mason works on a number of deals and looks at 2-3 new opportunities on a weekly basis for RCF

As an investment team leader, I am generally responsible for 4-5 material transactions and a number of smaller transaction deals in my portfolio that I manage with my team on a day to day basis. They are the core transactions we work on. At present within those core transactions, there are two projects which have required greater team bandwidth just due to the size and complexity of them, and the work load required.

In my team we have four people – two Canadians, a Kiwi (New Zealander) and me, an Australian – all working out of the Denver office.

Regarding new projects, as a team, we look at and evaluate roughly two to three new opportunities on a weekly basis.

Mason has travelled extensively in order to oversee deal projects

There is a large amount of travelling involved with my role. I would estimate I travel around four to five months of the year. I do go back to Perth two to three times a year as RCF has an office there, and this works out well as I still have a lot of family in Perth. I also spend a fair amount of time in London, especially due to the fact that the Alufer Mining Bel Air project, a project I am currently working on, has its management team based there.

In 2012 Mason moved to the RCF office in Denver, Colorado, together with his family

In 2012, RCF thought it would be a good idea if I spent a couple of years in Denver. I moved over with my kids and enrolled them in school over here, and luckily they love it!

The lifestyle and the environment are great, and it is a good place to live. My kids enjoy their school, and my eldest daughter has just started college at Colorado University Boulder. Recently, there has been a large migration of people moving to Denver, and the city has significantly expanded. A lot of people move to Denver for the lifestyle, for the mountains, skiing and the hiking during the summer. The present intention for us is definitely to stay here.

Being involved in mining means I am often involved in a new project in an undeveloped region.  New developments touch many aspects of the communities nearby – and often provide better quality infrastructure for them (like roads, education and healthcare) – and sometimes in ways that can’t be measured with economic statistics.  I find it very rewarding being part of that process – and I take a deep interest in assisting the local communities that our projects impact.