ADB to finance critical minerals development

THE Asian Development Bank (ADB) said it launched the Critical Minerals-to-Manufacturing Financing Partnership Facility, which is designed to help countries in Asia and the Pacific to develop critical-mineral supply chains.

ADB President Masato Kanda said critical minerals will shape the next industrial era.

“Asia and the Pacific should be more than a source of raw materials. The region should also capture the jobs, technology, and value these minerals provide,” he said in a statement on Sunday.

“This facility is about urgency and fairness: building responsible supply chains now so our developing member countries can compete in advanced manufacturing and create opportunities at home,” he added.

The facility, which is aimed at moving the region beyond mining into higher-value industries, will be in two parts — a grant window and a catalytic finance window.

“The grant window will fund early project work, including feasibility studies, environmental and social assessments, technical assistance and knowledge sharing,” the ADB said.

For the grant window, Japan has committed $20 million, while the UK has committed $1.6 million.

Meanwhile, the catalytic finance window “is designed to bring in co-financing and risk-sharing from other financing partners.”

Korea Eximbank and the Korean Trade Insurance Corp. signed a $500-million memorandum as the facility’s first partner, the ADB said.

The newly-launched facility is a component of the ADB’s strategy of supporting responsible and sustainable critical minerals-to-manufacturing value chains across the region.

In the Philippines, the bank is currently supporting the critical minerals roadmap and regulatory reform. — Justine Irish D. Tabile