Falcone's Harbinger Jumps On Resource Investing In Africa, "The Last Frontier"

Harbinger’s MD, Lawrence Clark has been investigating natural resource projects in 15 African countries.

“Africa is the last untapped resource frontier left on earth,” Clark told Business Day.

Right now, Harbinger only has three investments in Africa:

  • 22% stake in Sable Mining Africa (holds coal and uranium deposits in SA and Botswana and plans to buy iron-ore assets)
  • 45% of African Medical Investments (runs hospitals)
  • Not yet disclosed% in African Minerals (an iron-ore explorer that agreed last month to sell a 12.5% stake to China Railway Materials Commercial Corporation to help fund a Tonkolili iron-ore project in Sierra Leone.)

They’ll wait until those do well before investing more.

“Over time we’re going to work towards making more investments, but we’re only going to do so with great caution.”

And Harbinger will only invest in projects that they’ve seen with their own eyes.

“The dollar value of our African investments, to date, has been very small as an overall percentage of our portfolio,” Clark said.

“We’re doing a hell of a lot of work on small dollars right now to get comfortable that we’re making the right investments.”

Investing in natural resources is a trend we’ve seen for a while now. Farms, gold, gold mining, and more farms are among the popular natural resource investments, which are good hedges against inflation.

Now check out 15 countries sitting on a fortune of metals and minerals –>

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