A Vancouver mining conglomerate has committed $100-million (U.S.) to a new charity initiative by former U.S. president Bill Clinton and financier Frank Giustra that aims to fight poverty in developing countries affected by the resource industry.
The Lundin Group of Companies said it will pledge the funds to the Clinton Giustra Sustainable Growth Initiative through its own philanthropic arm called Lundin for Africa.
The bulk of the $100-million donation will be aimed at social development projects in Africa, where the Lundin Group has extensive mining and oil and gas interests.
Lundin Mining Corp., whose chairman is Lukas Lundin, the scion of a family resource empire founded by his late father Adolf, owns a stake in the massive Tenke Fungurume copper project in the Democratic Republic of Congo.
“This will help us increase the depth and capability of Lundin for Africa,” said Paul Conibear, a director of Lundin For Africa and a Lundin Group executive.
Mr. Conibear said Lundin for Africa has raised several million dollars so far for its work in African countries including Ethiopia, Sudan, Uganda, Sierra Leone, the DRC and Cameroon, but expects that by teaming with the new Clinton and Giustra initiative its charity efforts will be more effective.
“They bring experience and statesmanship,” Mr. Conibear said, adding that Lundin for Africa hopes to help fund projects in Ghana and possibly Zambia.
Mr. Clinton and Mr. Giustra, a reclusive Vancouver multi-millionaire who made his fortune putting together mining industry deals, unveiled their new foundation at an event in New York last month. The initiative hopes to fund sustainable development projects such as hospitals, education, social services and infrastructure in parts of the developing world where the mining industry operates.
The foundation won the backing of more than two dozen mining companies, brokerages and law firms, who committed to supporting the initiative with financial contributions.
The Lundin Group's pledge is the largest yet by a company and matches the $100-million donations each made by Mr. Giustra and Mexican businessman Carlos Slim.
“When Frank Giustra brought forward the idea of having the world's mining sector pull together in support of alleviating poverty and building sustainable local economies in developing countries, I knew it would only succeed if the industry was serious about being actively involved,” Mr. Clinton said in a statement.
“Today's generous support by the Lundin Group is to be applauded because it demonstrates the potential of this global initiative to capture the imagination and support of the mining sector. The fact that more and more companies are joining us gives me confidence that while we've only just begun, we're headed in the right direction.”
Mr. Giustra said he expects the Clinton Giustra endeavour to complement the aid work Lundin for Africa is already carrying out.
“The Lundin contribution sends a strong signal that the resource sector is prepared to step up and take the initiative off the drawing board and turn it into a reality for developing countries around the world,” he said in a statement.
© The Globe and Mail
