FG Gold has surpassed a significant milestone by securing a $330 million senior debt financing agreement for Sierra Leone’s ground-breaking Baomafun Gold Project. Notably, this financing is supported by Africa’s two major development finance institutions (DFIs), the African Finance Corporation and the African Export-Import Bank. This effort will be Sierra Leone’s first large-scale commercial gold mine and is poised to have a major economic and development impact.
In an exclusive interview with CNBC Africa, FG Gold Executive Chairman Oliver Andrews highlighted the collaborative efforts and strategic partnerships that helped drive the project forward. Mr. Andrews highlighted the important role played by the Government of Sierra Leone in creating an environment conducive to the project’s success. Additionally, the risk-taking attitude demonstrated by African DFIs further strengthens our confidence in this African-led mining venture.
“Government readiness to support this project was central to the realization of this project. Combined with Africa’s DFIs’ desire to support and lead African-led projects, they not only recognized the potential this mine had, but also the potential for its impact to ripple across the continent,” Andrews explained. This pioneering gold mining project is resource rich, with a total of 6 million ounces of gold and reserves of over 2 million ounces.
Africa’s mining industry has traditionally seen young exploration companies reach out to stock markets as far away as the Australian and Canadian exchanges. But FG Gold’s approach changes the narrative, securing early funding from within Africa to validate and advance projects. Elaborating on the importance of locally sourced capital, Oliver Andrews said: “The early entry of African capital is game-changing. It means our support is local and we can quickly adapt and respond to the needs on the ground for our projects.”
Thirty percent of the project’s construction is complete and first gold production is expected by the end of 2026. The groundbreaking funding has ensured that FG Gold moves forward with confidence towards achieving this important milestone. “With this funding secured, we are confident – or secretly confident – that we can win our first gold medal by 2026,” Mr Andrews said.
A highlight of the Baomafun Gold Project is its deep commitment to preserving what Mr Andrews calls ‘African DNA’ within its operating framework. This brings together a diverse workforce from across the continent, with senior management positions filled by skilled professionals from countries such as Nigeria, Ghana and Tanzania. Local empowerment is another focus, demonstrated through training programs and prioritizing local recruitment.
Beyond the mining operations, FG Gold said the project is expected to deliver lasting local benefits and contribute 10% to Sierra Leone’s GDP. The company is working on a broader economic impact strategy, involving local businesses through procurement and infrastructure development. Notable community developments include building roads and bridges that significantly reduce travel times between rural communities, connecting rural communities with broader markets and opportunities, and bringing electricity to previously unpowered areas.
Highlighting the social and economic ripple effects, Mr Andrews added: “This road and the infrastructure we have built will strengthen local trade and contribute to the growth of local communities. This goes beyond FG Gold, this is part of our commitment to nation building in Sierra Leone.”
FG Gold’s long-term ambitions include extending this model to new regions in Africa, with the ambition to build a continental mining platform that prioritizes African development and community partnerships. “We’re not here to just establish another gold mine,” Andrews insisted. “Our goal is to redefine the mining landscape across Africa and ensure that broader community and government partnerships benefit the entire continent.”
Oliver Andrews’ vision for FG Gold represents a broader shift towards sustainable and inclusive resource use in Africa, charting a new path to prosperity for the continent through homegrown efforts.
