Anglo American Platinum commits to $200 million (c. R2.6 billion) venture capital funds
managed by AP Ventures LLP focused on increasing demand for PGMs
Anglo American Platinum announces that its wholly-owned subsidiary, Anglo Platinum Marketing
Limited, has subscribed for interests in two UK based venture capital funds, with
a total aggregate commitment of $100 million (about ZAR1.3 billion).
Anglo American Platinum’s
commitment to the Funds is matched by a $100 million commitment from South Africa’s Government
Employees Pension Fund represented by the Public Investment Corporation SOC Ltd.
The Funds will be managed through an independent fund management business, AP Ventures LLP,
led by two experienced former APML executives. The Funds have been established to invest globally
in companies which support the development of innovative and competitive technological uses of
Platinum Group Metals (PGMs).
The first Fund will hold certain of APML’s existing investments which have been made under APML’s PGM Investment Programme. The second Fund will be established to make new investments.
Developing the market for PGMs has been a long-standing strategic priority for Anglo American
Platinum, having established the Programme in 2009. Through the Programme, Anglo American
Platinum committed US$10m, ring-fenced for local RSA beneficiation, to provide start-up capital to
entities that use PGM-based technology in their products and processes. As the market developed, the
Programme’s size and mandate expanded, adopting a direct funding approach to leverage networks
and attract third party funding, making US$60 million of early stage and growth capital investments.
“Developing the market for PGMs is a strategic priority for Anglo American Platinum and this investment
with AP Ventures is a key initiative. Having enjoyed success and built a strong track record as part of
Anglo American Platinum’s PGM Investment Programme we have taken the decision to separate the
fund’s activities into an independent structure that will attract additional outside investment and allow
AP Ventures to increase the scale of its activities,” says Chris Griffith, Anglo American Platinum Chief Executive Officer, while commenting on Anglo American Platinum’s decision to spin the Programme off to independent management.
“The launch of AP Ventures is an exciting new development which will support the growth of PGM
technologies and increase PGM demand. Through this transaction, we are hoping to facilitate the
application of cutting-edge technological advances and broad innovative thinking to address mining’s
major challenges. It is a clear example of the use of collaborative partnerships to connect people for
the betterment of the industry and we are grateful to have had the support of the Public Investment
Corporation in bringing the Funds to fruition,” says Griffith.
“Through our investment in the independent AP Ventures Fund, the PIC is funding technology innovation and furthering demand for PGMs, which will ensure the industry has a sustainable future. As a leading global institutional investor, this investment further demonstrates our support of the United Nations Sustainable Development Goals. My view is this investment will stimulate and sustain the demand for PGMs in the long term, benefitting our clients and preserving the long-term mineral wealth for all South Africans. In addition, the potential for localisation of these technologies in South Africa, contributes to sustaining jobs in the PGM mining sector and planning for creation of jobs in the manufacturing sectors. The PIC is already a significant investor in the platinum mining industry and regards the long-term sustainability of the industry as being critical to long-term returns of its portfolios,” says Dr Daniel Matjila, Public Investment Corporation Chief Executive Officer.