Infrastructure solutions provider the Africa Finance Corporation (AFC) has become a codeveloper and early-stage investor in titanium dioxide pigment manufacturer Nyanza Light Metals’ $550-million 80 000 t/y titanium dioxide pigment plant in South Africa.

The AFC is making an initial $3-million investment which will go towards the completion of the project development activities that will take the project to financial close in the first half of 2023. Production from the main plant is set to ramp up from early 2025.

In addition to its role as a codeveloper, the AFC is also a co-mandated lead arranger along with the African Export-Import Bank which has co-funded the project.

In March, Nyanza completed the construction of the first phase of the project, which is located in Richards Bay Industrial Development Zone in KwaZulu-Natal. This culminated in the commissioning of the product testing and development centre (PTDC) with a capacity of 700 t/y of titanium dioxide pigment.

Nyanza states that its project will be the first of its kind in South Africa and the African continent producing titanium dioxide pigment for international and South African manufacturers of products including paints, plastics, pharmaceuticals and building materials.

Despite being the world’s second-largest producer of titanium ores, South Africa imports almost all of its value-added titanium products.

Nyanza reports that the project has received strong support from the South African government through its Department of Trade, Industry and Competition, which, since 2020, has co-funded the feasibility studies with the sponsors – Arkein Capital Partners and DBF Capital Partners. Athari Capital Partners also acted as the lead transaction adviser to Nyanza.

Nyanza CEO Donovan Chimhandamba says the AFC’s commitment to the project is a milestone that supports Nyanza’s commitment to developing impactful mineral beneficiation and diversified chemicals manufacturing plants in Africa.

“This investment sets up Nyanza as Africa’s largest titanium value-addition industrial complex. Nyanza’s pioneering journey into mineral beneficiation is a trailblazing initiative that will hopefully be a model for value addition in minerals processing across the continent,” he says.

AFC senior director and project development and technical solutions head Amadou Wadda says this “landmark deal” is closely aligned with the AFC’s investment strategy, which focuses on the in-country value-accretive beneficiation of Africa’s natural resources.

“South Africa being one of the world’s largest producers of titanium ore makes this project a key example of moving Africa higher up the value-added manufacturing supply chain whilst creating local jobs and driving economic development on the continent,” he says.

The PTDC’s titanium dioxide production will be offered to paint and pigment market players to test and co-develop different paint formulations based on Nyanza’s pigment quality, while the 80 000 t/y main plant is being built.

“Nyanza’s current focus is on appointing the right engineering, procurement and construction contractor to construct the main plant,” Chimhandamba says.