Appian in talks with EBRD, others, on critical minerals funds

Appian Capital Advisory, a London-based private equity firm, is engaged in discussions with the European Bank for Reconstruction and Development (EBRD) and other entities to secure funds for investing in critical minerals projects, according to an executive from the firm speaking to Reuters. The EBRD confirmed these talks on Thursday, though the potential investment amount has not been disclosed.

This move follows Appian's $1 billion joint fund with the International Finance Corporation (IFC), which has served as a model for future transactions, said Paulo Castellari, Appian's CEO for critical minerals. In response to Beijing's export curbs on permanent magnets last year, Western nations are striving to diversify their supply chains for critical metals essential to various industries, from automotive to defense.

Governments, sovereign wealth funds, and development organizations are allocating billions of dollars to this sector, increasingly relying on specialized private equity firms like Appian to manage their capital allocation effectively. Castellari highlighted that Appian's partnership with the IFC has facilitated their establishment of connections with European institutions and development agencies, and he anticipates further partnerships to follow.

With 14 mine projects built over the past five years, Appian has demonstrated its capability to deliver projects on time, within budget, safely, and responsibly, bolstering their credibility for new collaborations. Appian aims to deploy $5 billion to $7 billion globally within the next 12 to 24 months, with a significant portion allocated to Africa.

However, policy uncertainties are steering investment toward Latin America. Appian also plans to explore investments in processing assets, given that processing has emerged as a significant bottleneck for critical minerals like rare-earth magnets.