Exxaro CEO Nombasa Tsengwa Announces Renewable Energy Plans Amid South Africa's Electricity Constraints

South African coal, energy, and ferrous markets company Exxaro is moving forward with its renewable energy plans, including a 68 MW solar power plant set to break ground this quarter. The project, worth between R1.52-billion and R1.56-billion, is part of the company's pipeline of opportunities, which includes a partnership with independent energy company Enertrag to develop wind and solar solutions for the mining industry in Mpumalanga.

Key Takeaways:

• Exxaro is investing in a 68 MW solar power plant, expected to break ground this quarter, with a budget of between R1.52-billion and R1.56-billion.
• The project is part of the company's pipeline of opportunities, which includes a partnership with Enertrag to develop wind and solar solutions for the mining industry in Mpumalanga.
• Exxaro's partnership with Enertrag has a potential pipeline of 700 MW, with a range of 370 MW to 975 MW.
• The company is exploring near-permitted sites to expand its energy market presence and has 8 wind and solar acquisition growth opportunities in progress.
• Exxaro is working to mitigate the impact of logistics constraints and electricity shortages on its operations, including collaboration with Minerals Council South Africa and Transnet management.

Statistics:

• 9 GW of renewable energy projects under development in South Africa, with the mining sector accounting for 6.5 GW.
• 41% increase in revenue to R46.4-billion in the 12 months to December 31.
• 78% increase in earnings before interest, taxes, depreciation, and amortisation (Ebitda) to R19 002-million in the 12 months to December 31.
• Ebitda margin of 80% in 2022 for Exxaro's wholly owned energy arm, Cennergi.
• 671 GWh of electricity generated by Cennergi in 2022.

Sources:

• Mining Weekly