Author: Mr. Jean Marais, Founder & Group Executive Chairman, Sanodea Group, Rooted in Africa. Connected to the World.
Presence: Africa, Europe, Middle East, Asia, North America
Executive Summary
Partnerships in mining define the future of mining. Across Africa, billions of dollars in projects have been delayed or cancelled due to weak stakeholder alignment, social unrest, and financing constraints. Mines cannot succeed by engineering alone; they must succeed through trust, transparency, and shared value.
This case study presents Sanodea Resources – Connect’s flagship partnership framework, developed through multi-country engagements. It shows how structured agreements between governments, investors, operators, and communities translate into measurable outcomes: faster access to capital, reduced project stoppages, increased local employment, and stronger social licences. When partnerships are designed and governed properly, they not only stabilise projects but unlock growth, resilience, and legitimacy.
“Partnerships in mining are not public relations — they are the operating system of Africa’s mines of the future.”
1. The Strategic Imperative
Africa’s mineral endowment is unmatched, yet the ability to convert resources into sustainable national wealth depends on partnership. The drivers are clear:
- Capital conditionality: Investors demand ESG compliance and governance before releasing funds.
- Community empowerment: Communities insist on jobs, equity, and infrastructure.
- Government expectations: Beyond royalties, states require skills transfer, local content, and public value.
- Operational stability: Operators need predictability; conflict-driven stoppages destroy competitiveness.
In this environment, partnerships are decisive for survival and competitiveness.
2. The Cost of Partnership Failures
Common breakdowns include:
- Transactional agreements ignoring long-term community benefit.
- Governments prioritising short-term fiscal gains without building skills.
- Investors overlooking social risks, leading to capital lock-in.
- Operators treating compliance as a cost centre rather than a value driver.
Evidence: Over $25 billion in African mining project value has been lost in the past decade due to disputes, protests, and suspensions rooted in poor partnership design.
3. The Sanodea Resources – Connect Partnership Framework
Sanodea Resources – Connect applies a structured model:
- Mandate Alignment — Map government policy, investor expectations, operator objectives, and community priorities.
- Outcome-Linked Contracts — Tie agreements to measurable KPIs: local employment, royalties, ESG milestones.
- Digital Transparency — Dashboards and reporting to track delivery and build trust.
- Capital Mobilisation — Link ESG-aligned projects to concessional finance, DFI support, blended capital.
- Independent Governance — Third-party monitoring and Sanodea oversight to enforce accountability.
4. Case Studies (Anonymised, Africa-Wide)
Case Study 1 — West African Gold Investment: Stabilising a Delayed Project
Challenge: $200M operation stalled due to protests over unmet local content.
Sanodea Resources – Connect approach: Tripartite agreement binding government targets, investor milestones, and community apprenticeship quotas.
Results: Operations resumed within 6 months; local employment +25%; investor secured $50M green finance top-up.
Case Study 2 — East African Critical Minerals: Unlocking Capital Confidence
Challenge: ESG reporting gaps blocked access to institutional investors.
Sanodea Resources – Connect approach: ESG-linked financing model, independent reporting dashboard, carbon credit mechanism.
Results: $120M raised from DFIs; long-term offtake secured with a global EV manufacturer.
Case Study 3 — Southern African Multi-Mine Community Partnership
Challenge: Recurring protests and royalty disputes across multiple sites.
Sanodea Resources – Connect approach: Shared community development fund, digital royalty tracking, and a joint skills academy.
Results: Disputes resolved; 2,000+ youth and women trained; attrition rates dropped significantly.
5. Measurable Outcomes
- $120M+ capital raised through ESG-linked financing.
- +25% growth in local employment within affected projects.
- 2,000+ trained in mining skills via community academies.
- 60% reduction in project stoppages tied to disputes.
- Improved financing spreads through verified ESG performance.
6. Strategic Value for Stakeholders
- Governments: Stable royalties, skills transfer, community stability.
- Investors: Lower risk, ESG-linked finance, stronger returns.
- Communities: Jobs, infrastructure, decision-making participation.
- Operators: Stable production, lower costs of conflict, stronger licence to operate.
7. Sanodea Resources – Connect — Our Role
Sanodea Resources – Connect acts as:
- Convener: Bringing governments, investors, DFIs, operators, and communities together.
- Designer: Structuring partnerships with outcome-based metrics.
- Integrator: Embedding digital tools for transparency.
- Catalyst: Mobilising capital and aligning interests for measurable delivery.
Through partnerships with technology firms, universities, and ESG specialists, Sanodea ensures local ownership and capacity transfer.
Conclusion — Partnerships as the Operating System of Future Mines
Mining’s future cannot rest on geology alone. The decisive advantage lies in partnerships — structured, measurable, and accountable. In ten years’ time, the most competitive mines will be those that connect governments, investors, and communities in shared value frameworks.
Sanodea Resources – Connect has shown that when partnerships are properly designed and governed, they stabilise projects, unlock capital, and create legitimacy.
Sanodea Resources – Connect: Partnerships that Deliver.
Figures 1: Mine Management, Community Leaders, Government officials and Investors working together, connecting.
Figures 2: Community / villages’ citizens living and working together with the mining operations, living peacefully together, connecting.
References
- African Development Bank. Building Partnerships for Sustainable Resource Projects. 2023.
- Deloitte. Global Mining Outlook. 2023.
- International Finance Corporation. Partnership Models in Extractive Industries. 2022.
- KPMG. ESG and Investment Trends in African Mining. 2023.
- PwC. Mine 2024: The Future of Mining in a Sustainable World. 2024.
- Sanodea Group. Partnership Design & Stakeholder Transformation Reports. 2015–2025.
- World Bank. Community Engagement in Mining: Lessons for Africa. 2023.
