Sibanye-Stillwater, managed by South African executive Neal Froneman, has obtained $557.4 million in green financing for its Keliber lithium project in Finland. This milestone demonstrates the company’s dedication to aligning its operations with the global shift toward green energy.
The €500 million ($557.4 million) loan, secured through Sibanye’s subsidiary Keliber Technology Oy, will be used to pay the final capital expenditure required for lithium mining, processing, and refining facilities in Kaustinen, Kronoby, and Kokkola, Finland.
ING Groep NV arranged the financing package, which includes contributions from a varied collection of lenders, including an export credit agency (ECA)-guaranteed tranche, funding from the European Investment Bank (EIB), and commercial bank involvement. Production is planned to begin in 2025.
Sibanye-Stillwater CEO Neal Froneman expressed satisfaction with the wide collection of lenders’ backing for the project, underlining its strategic relevance in Europe’s clean energy transition. “The Keliber lithium project’s funding package offers cost-effective, long-term solutions, improving liquidity and operational capabilities, showcasing its viability and ESG credentials,” Froneman told reporters.
Under Neal Froneman’s leadership, Sibanye has exhibited perseverance in the face of problems such as employment layoffs, impairments, and losses. The corporation has cemented its position as a global leader in precious metals, with a particular emphasis on platinum, palladium, and gold. The successful green loan for the Keliber project secures its future while also highlighting Sibanye’s critical role in furthering worldwide clean energy initiatives.
The overall capital investment for the Keliber project is estimated at €667 million ($743.15 million), with a €250 million ($278 million) equity raise and an 80 percent guarantee from Finnvera, Finland’s state-owned ECA. Sibanye-Stillwater is now well-positioned to profit on the rapidly developing lithium industry, which is being driven by the global switch to electric vehicles.
