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The latest tailings retreatment project of Pan African Resources is ahead of schedule and below budget.

The Mogale Tailings Retreatment (MTR) Project, located to the west of Johannesburg, near Krugersdorp, on Gauteng's West Rand, is expected to produce 60 000 oz a year over a 21-year life of mine, at a forecast all-in sustaining cost (AISC) of less than $900/oz, London- and Johannesburg-listed Pan African reported on Monday.

"Exceptional progress has been made with the MTR Project's construction, which is nearing its final stages," CEO Cobus Loots stated in a Johannesburg stock exchange news service announcement.

Plant commissioning and first gold production at the below-budget MTR is anticipated well ahead of schedule in October 2024, with steady state production expected during December.

Pan African is not only creating 500 jobs for mostly local personnel but also helping to remove many years of environmental scarring brought about to the west of the City of Gold, where mining of the precious metal began in the 1880s, leaving behind a number of eco-social challenges.

"I can assure you we'll work to our ethos of making a positive difference to the site in the years ahead," Pan African chairperson Keith Spencer declared assuredly at the Mogale Tailings Retreatment sod-turning, covered by Mining Weekly in July last year, when attention was drawn to the West Rand location of the MTR project having, over many decades past, produced more than 2 000 t of gold from numerous deep underground shafts and tunnels, with some mines in the area deeper than 3.5 km from surface.

Apart from removing the unsightly and dangerous tailings, there will be the added benefit of filling in abandoned underground tunnels with re-mined waste material to eliminate illegal mining. The rehabilitated ground can be put to better economic use for factories, industry and housing.

Moreover, an independent feasibility study for a new solar plant at the MTR operation is expected to be completed before the end of September.

Solar plants are already a standard feature at Pan African's other operations. At its Fairview gold mine, a key part of the Barberton Mines complex in Mpumalanga, construction and mechanical assembly, including installation of the solar trackers for the mine's 8.75 MW solar photovoltaic generating plant, have been completed, enabling the commencement of the required test work to ensure that the facility complies with operating standards and regulatory requirements. First power generation is anticipated in the next month. This solar plant is expected to provide 15% of Barberton Mines' energy requirements, with annual electricity cost savings of $2.4-million, at current Eskom tariffs.

Evander Mines' and Barberton Mines' solar photovoltaic generating plants are now funded by a $19.4-million, five-year green loan facility, which became effective in June. This facility provides for an accordion option of $13.9-million to enable the group's future renewable energy funding requirements.

Pan African has again delivered into its production guidance, while further improving safety rates, it stated in its operational update for the year to June 30, which was accompanied by the announcement of group financial manager Marileen Kok taking over from retiring Deon Louw as group financial director.

The 6.2%-higher annual production of 186 039 oz was within guidance with the average achieved gold price of $2 021/oz ore R1 215 827/kg.

Barberton Mines produced 71 470 oz, Evander Mines underground: 40 869 oz, Elikhulu 54 812 oz, and Barberton Tailings Retreatment Plant (BTRP) 18 888 oz.

AISC for the reporting period is expected to be $1 350/oz, at an average exchange rate of R18.71 to the dollar.

The all-in sustaining production costs at the Elikhulu and BTRP tailings retreatment operations were described as being "some of the lowest in Southern Africa".

Commissioning of the ventilation shaft hoisting system at Evander underground during the start of the 2025 fi...

Mining Weekly Editor Martin Creamer discusses the Minerals Council South Africa's support of beneficiation where the economics make sense; Seriti Resources advancing into wind energy through Seriti Green and which may be further advanced by an entry into solar power; and Kumba Iron Ore being pleased with the new multi-party government’s commitment to continued reform of iron-ore logistics.

Anglo American Platinum, which is in the process of demerging from the Anglo American group, this week expressed confidence in the demand outlook for the platinum group metals (PGMs).

The Johannesburg Stock Exchange-listed platinum group metals (PGMs) is being set free to advance unfettered as an independent pure PGMs play.

It will do so with the added benefit of a secondary listing in London and carrying with it mining, processing and marketing know-how gathered over many decades.

"What we're particularly excited about is really the demand outlook for PGMs," an upbeat Anglo Platinum CEO Craig Miller commented to Mining Weekly in an exclusive interview, in which prime emphasis was placed on feet-on-the-ground, shoulder-to-the-wheel determination to achieve the utmost operational excellence from high calibre assets.

"Not only can we drive greater value from the current performance of our assets, but these assets also have fantastic optionality into the future, and we're continuing to invest into this optionality in a disciplined way," Miller outlined amid PGMs not only continuing to play a critical role in catalytic converters in internal combustion engine (ICE) vehicles and hybrid ICE plus battery electric powered vehicles, but also the far-reaching opportunities that are continuously presenting themselves as the world becomes cleaner and greener to combat climate change.

"PGMs can play a very significant part in that transition, and ultimately their utilisation in that greener world.

"That's probably more pronounced in terms of how PGMS can be used in the generation of green hydrogen and from renewable energy being converted green hydrogen," he said referencing the deployment of green hydrogen into many different sectors.

These sectors include hard-to-abate industries, such as the cement industry or the steel industry, but also mobility, of a heavy- and light-duty kind, utilising PGM-enabled green hydrogen powered by PGM-enabled fuel cells.

"That's really is the exciting opportunity for us. To capture a very significant portion of future demand, you would need round about one car in 10 to be a fuel cell electric vehicle car, which has no emissions, is powered by green hydrogen, and is entirely green.

"That will then result in round about six-million to eight-million ounces of PGM demand, and that, really, is just one of the applications where PGMs can be used in the future, which makes us so excited about what PGMs can bring, and therefore, the excitement around what a standalone, independent company will be once we've completed the demerger", which is expected before the end of 2025.

Mining Weekly: Why are you optimistic that the present low price of platinum is not a long-term problem?

Miller: There have certainly been some lower price environments. Certainly, we experienced that in in 2023 but I just need to take you back to 2021 and 2022 when, as a result of constraints in supply as a result of covid and the issues that we had in getting supply around the world,, we had record prices for PGMs. In that environment, a lot of our customers were concerned around supply, and went out and bought additional metal. They've been working through that inventory and we think they're probably back to more normalised inventory levels, so we should see some pickup in buying of PGMs. We're starting to see a narrowing of the anticipated surpluses in palladium and rhodium to more balanced environments, and platinum even growing in deficit. It's on that basis that I think you'll start to see some form of price correction in months to come.

Why is the word hybrid constantly cropping up in relation to PGMs and mobility?

A hybrid vehicle is probably the best of both worlds. You have a pure battery electric vehicle, which is just powered by a battery, and you have an ICE vehicle, which is powered by gasoline. A hybrid has both a gasoline engine and a battery. If you're going on short distances, you'll probably use the battery. If you're goin...

By the end of 2025, the new Anglo American is going to be focused 100% on copper, iron-ore and crop nutrient mining.

By that time, the demerged Johannesburg Stock Exchange-listed Anglo American Platinum will have a secondary listing in London, and on their separate ways will be Anglo's De Beers, steelmaking coal and nickel businesses.

What is described as simplification and transformation will have taken place, which prompted this comment from upbeat Anglo CE Duncan Wanblad: "We'll be in a substantially more resilient financial position, with considerable growth optionality embedded within the portfolio." (Also watch attached Creamer Media video.)

Plus points are that its copper mines in South America provide an organic pathway to 30% near-term production uplift, and the iron-ore mines of South Africa and South America benefit from through-the-cycle cash generation potential as a consequence of lump and direct reduction iron (DRI) price premiums.

With its Woodsmith project, the new Anglo will also have a food security option, which it believes encompasses one of the best megatrends of today's markets.

"As a result, we believe that this business will be valued much more positively by the market," an upbeat Wanblad told investment analysts amid commitment to transform the business over the next 18 months.

"The new Anglo has an incredibly powerful investment case, one that is far more focused with high quality set of portfolio assets, which means growth optionality that we already own.

"With our assets housed in a much simpler structure going forward, we can deliver material cost savings, and transform our Ebitda margin.

"We're confident that we're reshaping this company to be a more financially resilient one, driving improved through-the-cycle performance that will maximise value recognition by the market," Wanblad highlighted during the Johannesburg- and London-listed company's half-year results presentation covered by Mining Weekly.

Legal technical accounting and commercial work streaming and engaging with some buyers is underway.

"Alongside that, we have a team focused on the organisation design work to make sure that we are ready to execute as soon as each of these processes is complete, without any concerns to business continuity, or on delivering our efficiency targets.

"We then have a very tight team at the centre of all of this, to make sure that we manage all the critical interdependencies across all of these processes."

Starting with the disposal of the steelmaking coal in Australia, Anglo reported that it is "moving at full speed with the sale process".

"At Nickel, our intervention to limiting price pressure on cash flow has already delivered some results and we're well positioned to progress with our preferred option of a sale.

"At Anglo Platinum, we're well on track for a 2025 execution. Teams are working together to be able to deliver the separation as effectively and as efficiently as possible.

"Whilst our prior experiences with the likes of Mondi and Thungela was for the demerger process to take more than 18 months, we're well set to move more quicker given that Anglo Platinum already has listed company processes, systems and governance structures in place.

"That significantly accelerates this particular process, although it is important to flag that there are some complex separation pieces of work that will need to be done, as many of the functions are very closely integrated with a with a greater Anglo group.

"We want to make sure that Anglo Platinum gets done in the right way and set this business up to deliver its tremendous potential too.

"Success involves getting the separation right plus ensuring that the right actions are taken in managing flow back proactively.

"Alongside its primary listing remaining on the Johannesburg Stock Exchange, we're therefore looking at the potential of a secondary listing of Anglo Platinum on the London Stock Exchange and these processes are now underway," Wanblad outlined....

Diversified mining company Anglo American, which is in the process of restructuting itself, on Thursday delivered $5-billion underlying half-year earnings for the six month to the end of June.

"I'm very encouraged by a strong operational performance that delivered steady volumes and a 4% improvement in unit costs, while still facing weak cyclical markets for platinum group metals and diamonds," Anglo American CE Duncan Wanblad stated.

The Johannesburg- and London-listed centenarian company reported that it is on track to reduce annual costs by $1.7-billion and reduce capital spend by $1.6-billion over the 2024-2026 period.

"We are moving at pace to create a much more agile and structurally profitable mining company," Wanblad added in a media conference covered by Mining Weekly.

The new Anglo will be focused on its copper and Iron-ore businesses, while maintaining its growth optionality in crop nutrients.

It reiterated its committed to completing the key elements of this transformation, which involves the demerging of Anglo American Platinum and De Beers by the end of 2025.

It reiterated its target of creating a simpler, higher valued mining company with extensive growth options and considerable strategic flexibility.

The operational focus delivered half-year margins in earnings before interest tax depreciation and amortisation (Ebitda) of 53% in copper and 43% in iron-ore.

The $5-billion half-year earnings had a collective Ebitda margin of 33%.

South Africa's Kumba Iron Ore in the Northern Cape was described as continuing to perform strongly while collaborating with State logistics enterprise Transnet on rail reliability, while iron-ore subsidiary Minas-Rio in Brazil achieved its strongest first half production for several years.

The steelmaking coal business in Australia has also improved its production and cost performance, though the incident at Grosvenor will set production back, Anglo cautioned.

The process of divesting the steelmaking coal business is continuing with Anglo reporting strong interest from a large number of potential new owners.

The 4% improved unit costs improved were described as reflecting weaker currencies, operational improvements and effective cost control.

The development of the Woodsmith crop nutrient project has been slowed down and a joint venture partnership sought.

SOUTH AFRICAN RENEWABLES

In addition to its 2030 operational emissions reduction target, Anglo is targeting carbon neutrality across its operations and a halving of Scope 3 emissions by 2040.

Anglo said that it has managed to reduce Scope 1 and 2 and greenhouse gas emissions in the six months to below what they were in the prior period.

In South Africa, its jointly owned renewable energy venture with EDF Renewables - Envusa Energy - has completed the project financing for the first three wind and solar projects.

These three renewable energy projects, known as the Koruson 2 cluster and located on the border of the Northern Cape and Eastern Cape, are designed to have a total capacity of 520 MW of wind and solar electricity generation.

Managed operations in South America are already supplied with 100% renewable electricity and the managed operations in Australia are scheduled to move to renewablesupply from 2025.

At this stage, 60% of the global grid supply for the current Anglo portfolio would be drawn from renewable sources.

Minerals Council South Africa, whose members account for 90% of this country's yearly mineral production by value, supports beneficiation where the economics make sense.

"Therefore, we welcome the call for a more conducive policy environment for beneficiation processes," Minerals Council CEO Mzila Mthenjane stated in a media release to Mining Weekly.

However, the council emphasised the need for careful and strategically informed consideration of an export tax or other restrictions on primary raw mineral exports.

Favoured is a 'carrot' as opposed to a 'stick' approach to achieving higher levels of mineral beneficiation in South Africa, which, the council said, would entail removing the binding constraints that have curtailed mineral beneficiation since the onset of the electricity crisis more than a decade ago, while at the same time creating a more conducive policy environment for primary mineral extraction.

With no guarantee of boosting beneficiation, the 'stick' approach of export taxes would hurt the primary mining sector and undermine the pursuit of inclusive economic growth, which is the stated primary objective of the new Government of National Unity.

The council was responding to comments by Mineral and Petroleum Resources Minister Gwede Mantashe that the government should intervene through a range of measures to encourage value-addition or beneficiation of the country's minerals to boost employment.

In a speech that was delivered as part of the debate on President Cyril Ramaphosa's Opening of Parliament address, Mantashe said these measures could include taxing primary mineral exports, an incentive scheme for beneficiation processes, such as a finite tax holiday, or an electricity tariff linked to commodity prices.

Under conditions where South Africa did not have a comparative advantage to beneficiate a certain mineral - such as specific technical expertise in a particular field of beneficiation; abundant, cheap electricity; a modern, cost-competitive manufacturing base; or globally competitive labour - the unintended consequences of export restrictions might entail lower mining production as the erosion of returns on primary extraction were eroded, the release noted.

In addition, local and offshore interest might be curtailed in investing in exploration and existing mining operations generally, and specifically for those minerals suitable only for the export market or where committed supply contracts were in place.

In contrast to the stated aim of increasing employment through beneficiation, these adverse impacts would negatively affect existing jobs and new employment opportunities, the fiscus through reduced taxes, and current account balances, and South Africa's relevance in global commodities markets.

Because of the risks involved, careful consideration must be given to commodities where beneficiation makes economic sense given South Africa's geographical location relative to markets and comparative advantages of this country's rich geological endowments, and the beneficiation processes in South Africa or neighbouring countries that make up the Southern African Development Community.

"In addition, our favoured approach to encourage beneficiation would include, firstly, a coherent, efficient and stable regulatory environment that encourages investments in exploration, through transparent and expedited processes leading to the construction of new mines and expansion of existing operations for a longer life and sustainable jobs," said Mthenjane.

"This will unlock significant growth opportunities for South Africa, expanding its role into the production of critical minerals and supply to enable the transition to a low-carbon future, both domestically and abroad.

"Secondly, protecting existing beneficiation activities, such as precious metals refining, ferrochrome, manganese alloys and steel manufacturing, will be critical to developing a nationwide 'construction site' as Ramaphosa says, and inclusive economic develo...

The commitment of South Africa's new multi-party government to continued reform of this country's iron-ore logistics was hailed on Tuesday by Kumba Iron Ore.

Speaking during the presentation of half-year results covered by Mining Weekly, Kumba CEO Mpumi Zikalala spoke of the current public-private partnership model having the potential to create powerful logistics reform. (Also watch attached Creamer Media video.)

"The good thing is that the independent technical assessment is being finalised to come out in the third quarter," Zikalala said in response to Morgan Stanley analyst Brian Morgan during question time.

The transparency of the new Transnet leadership was highlighted as providing an opportunity for significant collective public-private logistics upliftment.

"We're encouraged by the statements that are coming out from the likes of the new Minister of Transport, Barbara Creecy, and there's clearly continuity because we have been working with the various teams and that includes the team in the Presidency because ultimately, they are driving the work around the National Logistics Crisis Committee," Zikalala stated in response to Barclays' Ian Rossouw.

The improved outlook follows the Kumba business being challenged by the decline in logistics performance.

"We've proactively sought ways to mitigate the impact by optimising our operating model, as well as collaborating with Transnet, the Ore Users Forum, as well as the National Logistics Crisis Committee to improve logistics performance.

"However, rail's poor first-half performance impacted our sales. In the first quarter, sales fell by 9% compared with the fourth quarter of 2023."

During April, Kumba, together with its Ore Users Forum partners, assisted Transnet with the repairs on a stacker reclaimer at the Port of Saldana.

This was followed by a five-day proactive mini shut of the port and rail.

Improvements made as a result of the stacker reclaimer repairs, coupled with work performed during the mini shut, translated into a 12% increase in sales in the second quarter.

Unfortunately, Kumba did not see the same performance uplift on rail after the mini shut.

This does, however, demonstrate the powerful impact of partnerships and the difference that this can make when it comes to logistics performance.

"In the second half, our priority is supporting Transnet as it prepares for its annual maintenance shutdown, which will take place at the beginning of the fourth quarter."

Before then, the independent technical assessment is expected to be completed. This assessment aims to expedite delivery of critical projects through mutual collaboration between the Ore Users Forum as well as Transnet.

Reform under the leadership of the Presidency as well as the National Treasury through Operation Vulindlela is driving government and business collaboration, where practical interventions and reforms to freight logistics policy are taking shape. These reforms support private-sector participation and investment to improve the logistics network.

"We're also encouraged by the commitment from government that there will be an increased emphasis on implementation and delivery when it comes to the policy reforms," added Zikalala.

Kumba Iron Ore CFO Bothwell Mazarura outlined the work being done by the reconfigured Johannesburg Stock Exchange-listed Anglo American group company to reduce costs.

Since early 2022, iron-ore prices have averaged in a tight range of around $120/t. In the first half of this year, the benchmark price averaged $118/t with strong steel exports from China offsetting domestic demand on the back of weak property markets.

This meant that year-on-year, crude steel production decreased by 1%. Narrow mill margins in the first quarter forced mills to lower their capacity utilisation levels.

"Since then, we've seen an improvement in margins, resulting in increased steel output," Mazarura reported.

Iron-ore supplied from traditional and non-traditional sources increased owing to le...

Despite the current low-price cycle, the critical role that platinum group metals (PGMs) play in helping to form a foundation for cleaner greener world remains indisputable, Anglo American Platinum CEO Craig Miller highlighted at the company's presentation of solid half-year results on its journey towards divesting from the Anglo American group.

"Our market development efforts help ensure that our products have a sustainable and positive impact on the world. We're leveraging capabilities through these activities and capturing value from the adjacent value chains while diversifying sources of future PGM demand," added Miller, who expects Anglo Platinum to be a separate primarily Johannesburg-listed mining and marketing company by the end of next year. (Also watch attached Creamer Media video.)

Some key marketing progress that was made in the first half of this year includes the development by Platinum Guild International of Inoveo platinum, a proprietary platinum jewellery alloy, with the help of AI and digital technology.

Potential demand for the alloy represented more than 300 000 oz/y of platinum, it was stated during the half-year results presentation covered by Mining Weekly.

Owing to Inoveo being extremely well received in the US, a global expansion is now planned, starting in India.

In fuel cell electric vehicles (FCEV), Anglo Platinum is advancing the implemention of green-hydrogen taxi mobility in Europe, in partnership with Hype, the official taxi provider to the 2024 Paris Olympic Games. Expansion into Hamburg is now also imminent.

FCEVs offer a substantial opportunity of six-million ounces of platinum a year, if one in ten cars is an FCEV.

In batteries, extensive testing has been conducted at the Battery Innovation Center in Indiana, in the US, on Lion Batteries technology.

Early results show a 20% increase in energy density, and a 40% reduction in the cost of lithium sulphur batteries.

The next step is to explore product development, and further commercialisation pathways.

The potential yearly demand from Lion Batteries is considerable for palladium and platinum if this technology is adopted at scale.

In demand diversification in the US, Europe and China, Anglo Platinum has established three research development projects that will use PGMs and has developed technology for data centers and microchip processes to increase the speed and reduce their energy consumption.

"In a world of big data and artificial intelligence, this represents a substantial demand source for PGMs.

"We envisage many future opportunities turning risks into additional potential demands for our metals by leveraging the characteristics of PGMs and in new applications.

STANDALONE COMPANY

Regarding the demerger from Anglo American, Miller spoke of having the tools but needing to thrive as a standalone company.

"As a start, we have a credible platform, a world-leading endowment, world-class mines and strength across the value chain from technical upstream know-how, through well invested processing infrastructure to our global marketing capabilities.

"We have a fantastic team that has helped build the capabilities essential for leading PGM business in sustainability, innovation and market development," said Miller, who expressed optimism about the long-term PGM price outlook.

Although in the near-term prices are benefiting from the changing dynamics in the drive chain transitions, applications in addition to fuel cell technology batteries that can build growth over the longer term, include medical and semiconductor technologies.

LIKE FAVOURITE CHILD LEAVING HOME

Especially in the light of the challenging commodity prices, Anglo Platinum chairperson Norman Mbazima acknowledged the efforts across the company to deliver the change necessary for Anglo Platinum to achieve its full potential.

"Real change is often very hard to achieve but the benefits of that change are starting to come through in our performance and we should see the benefits continuin...

Platinum group metals (PGMs)mining and marketing company, the Johannesburg Stock Exchange primary-listed Anglo American Platinum, highlighted on Monday that it is working to deliver a responsible and orderly separation from the secondarily-listed Anglo American by the end of next year.

"Our management team and Independent board is already working alongside a dedicated team with Anglo American to achieve this," Anglo Platinum CEO Craig Miller outlined.

"We're looking forward to being the PGM leader, as a standalone entity. We have the mines, as well as the world class processing facilities together with that our marketing," Miller added during a media briefing covered by Mining Weekly.

Expressing optimism about the demand outlook for PGMs, he enthused about the key role that PGMs play in creating a greener world - "whether in internal combustion, hybrid or hydrogen electric vehicle drivetrains".

He described the automotive demand outlook for PGM-containing catalytic converters as being firmer as production plans and sales of pure battery electric vehicle vehicles stall, with PGM-containing hyrids gaining market share.

He noted that the largest automakers had extended their timeframes for internal combustion engine production and included various forms of hybrid vehicles in their product offering.

Additionally, there are a growing number of uses for PGMs - from new battery technologies to emerging medical technologies. Even alkaline electrolysers were not being boosted by PGM inputs, he confirmed in response to Mining Weekly.

Miller predicted that the planned demerger from Anglo American would create a more focused PGM independence that would optimise the company's business, assets, and people.

"We will build upon our strong foundations across the PGM value chain, which include industry-leading mineral endowments, world class mines, well established and fully invested processing infrastructure and globally recognised marketing capabilities.

"We are in parallel focusing on enhancing our leadership in sustainability, innovation and market development. All of this will still be from an organisation proudly based in South Africa. We are confident in the future and look forward to working alongside our stakeholders to continue building a highly successful PGM business that creates superior and sustainable value for the long term.

NET CASH

Anglo Platinum ended the first half of 2024 59 June 30 in a R14.5-billion net cash position and restructuring and cost savings measures being advanced.

Half-year refined PGM production was up 5% to 1.78-million ounces compared with the prior period, while metal-in-concentrate was a 5%-lower 1.76-million ounces.

Sales volumes increased 9% on inventory draw down while earnings of R12.3-billion were realised on a PGM dollar basket price of $1 442.

The all-in sustaining cost (AISC) of $957 per three-element (3E) ounce, as well ahead of the below-$1 050 target and on track to sustain cash generation through a low PGM price cycle.

Statutory employee restructuring consultation is complete and Mortimer Smelter is on care-and-maintenance.

ACTION PLAN

The Action Plan includes R10-billion annual cost savings from operating costs and stay-in-business capital from a 2023 baseline and R4.7-billion has been achieved in the first half of the year.

The measures are expected to result in a cash operating unit cost of R16 500 to R17 500 per PGM ounce, as well as an AISC of below $1 050 per 3E ounce in 2024.

Seriti Green, a Seriti Resources subsidiary, is progressing the country's first majority black-owned wind farm, the Ummbila Emoyeni project in Mpumalanga, which will also mark the province's pioneer wind energy facility.

This was highlighted by the group during the unveiling of the project to media and key stakeholders on July 17.

The R4.8-billion project is the first since Seriti Resources, one of South Africa's largest coal miners, announced its acquisition of Windlab and the subsequent launch of Seriti Green last year.

Seriti operates six large-scale, opencast and underground thermal coal mines, predominately supplying State-owned utility Eskom power stations.

The wind farm project forms part of the coal miner's strategy of diversifying its offering to more than coal, in a sustainable way, for it to play its role in the country's just energy transition (JET) journey.

Seriti Resources Group CEO and Seriti Green chairperson Mike Teke said the group would continue to develop its existing coal assets and would not be exiting them - given that phasing out of coal energy needed to be a long-term sustainable process - while simultaneously pursuing opportunities in green energy.

The Ummbila Emoyeni project is slated to be fully commissioned by 2027, by which time it will provide electricity to meet the needs of about 75% of Seriti's own operations, as well as supplying surrounding communities with electricity, through a wheeling arrangement.

The first phase of the construction of the 155 MW Ummbila Emoyeni wind energy facility is currently under way and will be completed by mid-July 2026.

The 155 MW project marks the first phase of a 900 MW project which Seriti Green aims to build over the next three years at an estimated cost of R25-billion. The 900 MW comprises 750 MW of wind power and 150 MW of solar power.

The overall project will also include 800 MWh of storage capacity.

About R1.5-billion of the R4.8-billion cost for Phase 1 will be spent on the grid infrastructure needed for the project.

About half of this infrastructure will be owned and maintained by Seriti Green, while the other half will form part of Eskom's national grid.

Seriti Green CEO Peter Venn noted that all of the equity in the project was being provided by Seriti shareholders RMB and Standard Bank.

He also highlighted the synergy between Seriti's coal business and its renewables business. "It is not about either coal or renewables, rather, it is about coal and renewables," he emphasised.

Venn averred that this allowed for Seriti Resources, which held the minerals rights over the project's land, to relinquish it for the project to be built. Moreover, the project was sourcing mine-impacted water from Seriti's nearby located New Denmark colliery asset, which Venn described as a circular economy stride.

Also, 10% of Seriti Green's workforce comes from the coal sector.

The project is also sourcing equipment from the local area, exploring options for local manufacturing of components, and features an on-site training simulator.

Venn stressed Seriti Green's focus on cross-skilling and upskilling people, from the coal sector and surrounding community, given that the wind farm would not be able to absorb the same number of employees as a coal operation.

Therefore, it was aiming to ensure that there was sustainable job creation in Mpumalanga in the long term, for when coal power stations were shut down. With the company set to build about 3 GW of projects in the area for about a decade to come, it was aiming for this to be a catalytic project for job creation in the region, Venn asserted.

The company also highlighted its focus on community and stakeholder engagement, which began in 2021, prior to construction starting on the project.

One of the things that materialised from this was the creation of a portal, in 2022, detailing to small and medium-sized enterprises and job seekers what is required for them to work on the project, so that they can prepare accordingly.

To...