REG - Anglo American PLC - Anglo American and EDF Renewables partnership

Anglo AmericanAnnouncement

04/10/2022 07:00

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RNS Number : 6401B  Anglo American PLC  04 October 2022

 4 October 2022
 Anglo American and EDF Renewables agree renewable energy partnership in South
 Africa to form Envusa Energy - launching 600MW of wind and solar projects in
 first phase

 

Anglo American in partnership with EDF Renewables announce their agreement to
form a new jointly owned company, Envusa Energy, to develop a regional
renewable energy ecosystem ("RREE") in South Africa.

 

In March 2022, the two companies signed a Memorandum of Understanding to
explore the ecosystem's development, designed to meet Anglo American's
operational power requirements in South Africa and support the resilience of
the local electricity supply systems and the wider decarbonisation of energy
in the country. The RREE is also expected to catalyse economic activity in
South Africa's renewable energy sector, supporting the country's broader just
energy transition.

 

As part of the agreement, Envusa Energy is launching a mature pipeline of more
than 600 MW of wind and solar projects in South Africa - a major first step
towards the development of an ecosystem that is expected to generate 3-5 GW of
renewable energy by 2030. This first phase of Envusa Energy's renewables
projects is expected to be fully funded - including by attracting debt
financing that is typical for high quality energy infrastructure projects -
and ready for construction to begin in 2023.

 

Envusa Energy is expected to supply Anglo American with a blend of renewable
energy generated on Anglo American's sites and renewable energy transmitted
via the national grid. This energy portfolio approach will aggregate energy
from geographically dispersed renewable generating assets and allocate this
energy optimally to meet the load demand for Anglo American's sites.

 

Nolitha Fakude, Chair of Anglo American's Management Board in South Africa,
said: "I'm delighted to confirm our ground-breaking partnership with EDF
Renewables to form Envusa Energy. This is a significant milestone in Anglo
American's global decarbonisation journey and another step forwards for South
Africa's clean energy future. We are making great strides towards our 2040
target of carbon neutral operations, while contributing to South Africa's just
energy transition through our responsible approach. We believe that the energy
transition presents a fresh opportunity for South Africa and the rest of the
region to build a clean and inclusive energy ecosystem that can create
significant new economic opportunities. I am very encouraged by our progress -
affirming Anglo American's commitment to South Africa's next phase of
development towards a low-carbon future."

 

Tristan de Drouas, CEO at EDF Renewables in South Africa, said: "We are very
pleased to be part of this very innovative venture and look forward to
bringing our global expertise in renewable energy infrastructure development,
design and delivery to Envusa Energy. This partnership with Anglo American
confirms our long-term perspectives in the country: this 600 MW first tranche
of projects will be added to the almost 1 GW that EDF Renewables will be
building or operating in the country by 2023 - including 420 MW of wind
projects in REIPPP Bid Window 5, whose PPAs were signed with Eskom and the
DMRE on 22 September 2022. Together, these projects further EDF Group's CAP
2030 strategy, which aims to double our net renewable installed energy
capacity worldwide (hydropower included) from 28 GW in 2015 to 60 GW by 2030."

 

The roll-out of the RREE will also serve as a clean energy source for the
production of green hydrogen for Anglo American's nuGen™ Zero Emission
Haulage Solution (ZEHS) - a planned fleet of hydrogen-powered ultra-class mine
haul trucks - significantly reducing on-site diesel emissions towards a carbon
neutral future while also supporting the development of South Africa's
Hydrogen Valley.

Through the formation of Envusa Energy, Anglo American and EDF Renewables are
committed to supporting South Africa's economic transformation and empowerment
goals. The process to identify an appropriate Black Economic Empowerment (BEE)
partner for Envusa Energy is expected to begin in the fourth quarter of 2022.

 

Furthermore, and in line with both companies' commitment to a just energy
transition, Envusa Energy is exploring a range of community partnership models
that will enable host communities to share in the benefits created by the
development of the RREE, along its value chain. The RREE is an opportunity to
help build a more collaborative and inclusive economy that places people and
the principle of shared prosperity at the heart of development. We expect that
the development of the ecosystem will generate a range of new economic
opportunities and contribute towards unlocking South Africa's growth and
development potential.

 

 

 

For further information, please contact:

 

 Media                                                                              Investors

 Anglo American

 UK                                                                                 UK

 James Wyatt-Tilby                                                                  Paul Galloway

 james.wyatt-tilby@angloamerican.com                                                paul.galloway@angloamerican.com (mailto:paul.galloway@angloamerican.com)
 (mailto:james.wyatt-tilby@angloamerican.com)

                                                                                  Tel: +44 (0)20 7968 8718
 Tel: +44 (0)20 7968 8759

                                                                                  Emma Waterworth
 Marcelo Esquivel                                                                   Emma.waterworth@angloamerican.com (mailto:Emma.waterworth@angloamerican.com)

Tel: +44 (0) 20 7968 8574
 marcelo.esquivel@angloamerican.com (mailto:marcelo.esquivel@angloamerican.com)

 Tel: +44 (0)20 7968 8891

                                                                                  Michelle Jarman

                                                                                  michelle.jarman@angloamerican.com (mailto:michelle.jarman@angloamerican.com)

 South Africa                                                                       Tel: +44 (0)20 7968 1494

 Nevashnee Naicker

 nevashnee.naicker@angloamerican.com

 Tel: +27 (0)11 638 3189

 Sibusiso Tshabalala

 sibusiso.tshabalala@angloamerican.com
 (mailto:sibusiso.tshabalala@angloamerican.com)

 Tel: +27 (0)11 638 2175

 Nompumelelo Kunene

 nompumelelo.kunene@angloamerican.com

 (mailto:nompumelelo.kunene@angloamerican.com)

 Tel: +27 (0)66 484 5522

 EDF Renewables                                                                     South Africa

 France                                                                             Sue Parker-Smith

                                                                                    communications@edf-re.co.za

 Manon de Cassini-Hérail                                                            Tel: +27 21 657 4200

 manon.decassini-herail@edf-re.fr

 Tel: +33 (0)6 29 48 43 40

 Eugénie Gai

 Eugenie.gai@edf-re.fr

 Tel: +33 0(6) 10 89 41 24

 

Notes to editors:

 

Anglo American is a leading global mining company and our products are the
essential ingredients in almost every aspect of modern life. Our portfolio of
world-class competitive operations, with a broad range of future development
options, provides many of the future- enabling metals and minerals for a
cleaner, greener, more sustainable world and that meet the fast growing every
day demands of billions of consumers. With our people at the heart of our
business, we use innovative practices and the latest technologies to discover
new resources and to mine, process, move and market our products to our
customers - safely and sustainably.

 

As a responsible producer of diamonds (through De Beers), copper, platinum
group metals, premium quality iron ore and steelmaking coal, and nickel - with
crop nutrients in development - we are committed to being carbon neutral
across our operations by 2040. More broadly, our Sustainable Mining Plan
commits us to a series of stretching goals to ensure we work towards a healthy
environment, creating thriving communities and building trust as a corporate
leader. We work together with our business partners and diverse stakeholders
to unlock enduring value from precious natural resources for the benefit of
the communities and countries in which we operate, for society as a whole, and
for our shareholders. Anglo American is re-imagining mining to improve
people's lives.

 

www.angloamerican.com (http://www.angloamerican.com)

 

 

 

 

EDF Renewables is an international leader in renewable energy, with a gross
installed capacity of 15.6 GW worldwide. Its development is largely driven by
wind (onshore and offshore) and solar photovoltaic power, and more recently
battery storage. EDF Renewables operates in majority in Europe and North
America but is continuing to grow by moving into promising emerging regions
such as Brazil, China, India, South Africa, Australia and the Middle East. EDF
Renewables develops, builds, operates and maintains renewable energy projects,
both for itself and for third parties.

 

Since 2011, EDF Renewables has established itself as a leading Independent
Power Producer in South Africa, having successfully developed a portfolio of
renewable energy projects. The subsidiary currently operates 142MW of wind
farms in South Africa and has been awarded over 800MW in new projects in 2021.

 

www.edf-re.co.za

 

Envusa Energy ("Envusa") is a jointly owned company formed by Anglo American
and EDF Renewables. The company will supply a blend of renewable energy,
generated on Anglo American's sites in the southern Africa region, and
renewable energy transmitted via the national grid. This energy portfolio
approach will aggregate the energy from the geographically dispersed renewable
generating assets and allocate the energy optimally to meet load demand for
Anglo American's sites in the region.

 

The name Envusa is inspired by the Nguni word, Vusa, which means "to awaken"
or "new beginnings" in other contexts.

 

 

Forward-looking statements:

This document includes forward-looking statements. All statements other than
statements of historical facts included in this document, including, without
limitation, those regarding Anglo American's financial position, business,
acquisition and divestment strategy, dividend policy, plans and objectives of
management for future operations (including development plans and objectives
relating to Anglo American's products, production forecasts and Ore Reserve
and Mineral Resource positions) and environmental, social and corporate
governance goals and aspirations, are forward-looking statements. By their
nature, such forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Anglo American or industry results to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.

 

Such forward-looking statements are based on numerous assumptions regarding
Anglo American's present and future business strategies and the environment in
which Anglo American will operate in the future. Important factors that could
cause Anglo American's actual results, performance or achievements to differ
materially from those in the forward-looking statements include, among others,
levels of actual production during any period, levels of global demand and
commodity market prices, mineral resource exploration and development
capabilities, recovery rates and other operational capabilities, safety,
health or environmental incidents, the effects of global pandemics and
outbreaks of infectious diseases, the outcome of litigation or regulatory
proceedings, the availability of mining and processing equipment, the ability
to produce and transport products profitably, the availability of transport
infrastructure, the impact of foreign currency exchange rates on market prices
and operating costs, the availability of sufficient credit, the effects of
inflation, political uncertainty and economic conditions in relevant areas of
the world, the actions of competitors, activities by courts, regulators and
governmental authorities such as in relation to permitting or forcing closure
of mines and ceasing of operations or maintenance of Anglo American's assets
and changes in taxation or safety, health, environmental or other types of
regulation in the countries where Anglo American operates, conflicts over land
and resource ownership rights and such other risk factors identified in Anglo
American's most recent Annual Report. Forward-looking statements should,
therefore, be construed in light of such risk factors and undue reliance
should not be placed on forward-looking statements. These forward-looking
statements speak only as of the date of this document. Anglo American
expressly disclaims any obligation or undertaking (except as required by
applicable law, the City Code on Takeovers and Mergers, the UK Listing Rules,
the Disclosure and Transparency Rules of the Financial Conduct Authority, the
Listings Requirements of the securities exchange of the JSE Limited in South
Africa, the SIX Swiss Exchange, the Botswana Stock Exchange and the Namibian
Stock Exchange and any other applicable regulations) to release publicly any
updates or revisions to any forward-looking statement contained herein to
reflect any change in Anglo American's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is
based.

 

Nothing in this document should be interpreted to mean that future earnings
per share of Anglo American will necessarily match or exceed its historical
published earnings per share. Certain statistical and other information about
Anglo American included in this document is sourced from publicly available
third party sources. As such it has not been independently verified and
presents the views of those third parties, but may not necessarily correspond
to the views held by Anglo American and Anglo American expressly disclaims any
responsibility for, or liability in respect of, such information.

 

Legal Entity Identifier: 549300S9XF92D1X8ME43

 

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