On 12 February 2025, Noah Law MP, the Chair of the All-Party Parliamentary Group for Critical Minerals, welcomed over 60 members of the finance community and critical minerals sectors to the Houses of Parliament for a meeting on finance and risk appetite. Noah opened the meeting by highlighting the significant challenges faced by the financial industry in supporting the critical minerals sector. He emphasised the geopolitical risks facing supply chains, the limited capital available for startups, and the necessity of responsible finance and investment for the sector's growth.
What Are Investors Looking For?
Simon Gardner-Bond from TechMet, a European-based investment firm focusing on the CM supply chain, underscored that investors prioritise profitability, reliable jurisdictions, and strong management when evaluating projects. He stressed that while government funding is important, private capital is essential to bridge the supply gap noting how private finance has partnered with the U.S. government to launch significant investment into their domestic sectors and supply chains. Simon also called for streamlined planning and permitting processes in the UK to attract more investment, as project delays and elongated profit horizons play a large role in hindering a project’s investment potential. Noah Law and Fiona Clouder (former UK Ambassador to Latin America and the Caribbean) echoed Simon’s sentiments, emphasising the need for rapid action, infrastructure investment and continuous pressure on the Government to develop and execute a coherent strategy.
Alternative Financing Models
Richard Greenfield, with over two decades of experience in investment banking, shared his insights on the evolving financing landscape, including alternative models like equity, debt, royalty financing and green bonds. He highlighted challenges such as market volatility, ESG considerations and limited transparency in mineral pricing. Sean Burnage, Regional Head - Origination and Client Coverage at UK Export Finance (UKEF), explained UKEF’s role in supporting overseas buyers of UK goods and services through guarantees, thereby encouraging banks to fund critical mineral projects. The UKEF facilitates trade across multiple continents including Europe, Asia, North America, South America, Africa and Oceania. Both speakers agreed on the necessity of nurturing private capital and the role of the government in mitigating early-stage risks.
Finance, ESG and Community Value
Anders Alfredson from Standard Bank highlighted that CM investment can drive sustainable growth, provided ESG standards are upheld. He shared examples from the Democratic Republic of Congo (DRC) and Zambia where mining operations are powered by renewable energy ,contributing to local economic and social development. Anders called for responsible capital at scale and emphasised the UK's potential to export its skills and services to the global mining industry. Stephen Hall (Chair, Minor Metals Trade Association) raised concerns about the poor working conditions in some mining regions on the continent, while Baroness Northover stressed the importance of investors prioritising ESG-centred approaches and promoting responsible practices in the industry.
Group Discussion: Unlocking Risk Appetite
Participants, including Nicholas Huffels (CEO, Mount Isa Minerals) and Lilly Wilson (Investment Associate, Orion Resource Partners) stressed the need for greater risk appetite from financiers and more government support to mature critical mineral projects. Discussions also covered the importance of updating the UK's critical minerals list on a yearly basis, addressing export bans from China, and leveraging offtake agreements to remove bottlenecks in supply chains. Tom Attenborough (London Stock Exchange Group) highlighted the potential of redirecting dormant capital in cash ISAs into productive investments, while Jeremy Wrathall (CEO, Cornish Lithium) encouraged investment in the UK critical minerals sector, citing abundant opportunities such as lithium and tin in Cornwall and tin and tungsten in Devon.
Conclusion
The APPG for Critical Minerals Finance Meeting underscored the pressing need for greater financial support, both from the government and the private sector, to ensure the UK remains competitive on the global stage. Key takeaways included the necessity of streamlining planning and permitting processes, fostering innovative financing models, and maintaining high ESG standards. Collaborative efforts among stakeholders, along with proactive government strategies, will be vital in unlocking the full potential of the UK's critical minerals industry and securing its leadership status in the multilateral campaign to develop alternative and responsible critical mineral supply chains.
If you’d like to know more about the Critical Minerals APPG or attend future events, please contact Jeff at jeff@criticalmineral.org or Eileen at eileen@criticalmineral.org.
Chair: Noah Law MP; Vice-Chair: Baroness Northover; Officer: Noah Law MP
Article by Elliott Trickey, CMA (UK)
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