Harbinger Capital has actively reduced investment in Australian miners as it turns its attention to Africa.
The move has seen the hedge fund boost its investment in African projects, after being rumoured to be behind the dropping of 45 million Murchison Metals shares onto the market, a few days after it drastically reduced its stake in Fortescue Metals from 16.2% down to only 4.2%.
It made this move as it sees Africa as the last “untapped resource frontier left on earth and over time we’re going to work towards making more investments there,” managing director Lawrence Clark said.
Australian based miner Gulf Resources has also looked to Africa as the geographic focus of their industrial minerals assets.
“Years have passed since investors updated their view of Africa’s promise and the time is ripe for multinationals to rethink sub-Saharan opportunities,” Gulf managing director Scott Reid told
This is certainly a view more junior miners are coming to following the proposed Resources Super Profit Tax.
“Now that the RSPT that has been proposed in Australia it makes companies perhaps look further afield for identifying new assets. Given that our East African Vermiculite in Uganda is about to come into production, we feel that our African focus has Gulf ideally placed now that there is the potential for the Super Tax to come into play,” Reid added.
Cape Lambert managing director Tony Sage agreed, telling that with the current uncertainty surrounding the new tax a lot of Australian mining companies are looking to potential projects, with Cape Lambert investing in a number of projects throughout West Africa, South America and the Central Asian Republics.
This tax will make the mining industry lose out in the long run, Sage said.