The Industrial Development Corporation (IDC) in South Africa claimed today (9th December) that it is being forced to step in to save mining projects because funding contributors are scaling down their commitments.

Ufikile Khumalo, Head of the IDC's resources business unit, explained that the body has received a number of co-funding applications from some of the country's top four banks in relation to three projects they had already committed to.

Although he would not reveal the names of the projects, he also confirmed that he expects more similar moves to be made in the coming months due to the current slump in commodity prices.

However, the IDC has set aside R60 billion for mining and resource projects for the next five years as it looks to save projects under threat from delays or being scrapped altogether as a result of banks pulling out.

"We will probably overspend the R60 billion budget, not necessarily on the same projects we had budgeted for," said Mr Khumalo.

"Once the (global) recession has been dealt with, it will be smooth sailing for resources. It has happened in the past, it will happen again."

Since January 2008, the price of platinum has plummeted from over $2,250 per oz to the current trading levels of under $800 per oz.



Source:

IDC steps up mine investments (09/12/08)
http://www.miningmx.com/mining_fin/909637.htm