Multinational commodities company Trafigura signed an offtake agreement in April 2026 with Ghana’s Heath Goldfields for the Bogoso-Prestea Gold Mine, committing to purchase around 700,000 ounces of gold. The deal provides immediate commercial certainty for the project while improving its financing profile by guaranteeing a long-term buyer, addressing one of the sector’s most persistent constraints: access to capital.
The move reflects a broader trend across Africa’s mineral sector whereby projects are turning to offtake agreements to secure capital and advance production. As Africa accelerates the development of its estimated $8.5 trillion in untapped mineral wealth, offtake agreements are emerging as an effective tool to unlock financing and de-risk projects.
This dual function – market assurance and capital enablement – is increasingly central to Africa’s mining financing landscape. By reducing demand risk, offtake agreements help unlock debt and equity financing that would otherwise be difficult to secure in early-stage or restart projects.
Similar structures are being replicated across the continent. In Sierra Leone, an offtake-backed arrangement involving Trafigura and FG Gold Limited helped unlock financing for the Baomahun Gold Project, marking a critical step in de-risking one of the country’s flagship mining developments and enabling financial close for large-scale gold production.
In the battery minerals space, NextSource Materials extended its offtake agreement in March 2026 with Mitsubishi Chemical Corporation to supply graphite from the Molo project in Madagascar. The arrangement provides predictable long-term demand for 9,000 tons per annum of graphite, while simultaneously supporting project financing and expansion plans tied to global battery supply chains.
Similarly, Bannerman Energy has secured offtake agreements with North American utilities for uranium from its Etango project, providing multi-year revenue visibility from 2029 to 2033 and strengthening the project’s long-term investment case.
These transactions reflect a broader structural shift in African mining finance: offtake agreements are no longer just sales contracts, but core instruments of project development, risk allocation and capital mobilization. For other markets seeking finance and long-term buyers, these examples demonstrate the viability of offtake contracts – not only for project commissioning phases but as tools for early-stage development.
Notably, in South Africa, where the government is targeting R2 trillion in investment to unlock its critical minerals potential, offtake structures could play a central role in de-risking projects. Similarly, in the Democratic Republic of Congo, which holds an estimated $24 trillion in untapped mineral wealth, offtake agreements could accelerate the monetization of its vast copper, cobalt and strategic mineral reserves.
Against this backdrop, the upcoming African Mining Week (AMW) Conference and Exhibition – taking place from October 14–16 in Cape Town – will showcase how offtake-driven financing models can be scaled to accelerate project delivery and strengthen Africa’s position in global minerals supply chain. Uniting stakeholders from across the entire African mineral value chain, the event offers a platform to examine strategic financing, mechanisms to accelerate production and positioning the continent at the forefront of global mining investment.
Distributed by APO Group on behalf of Energy Capital & Power.
