REG - Anglo American PLC - Envusa Energy completes project finance

Anglo AmericanAnnouncement

29/02/2024 07:00

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RNS Number : 8446E  Anglo American PLC  29 February 2024

 29 February 2024
 Envusa Energy completes project finance for 520MW of wind and solar projects
 in South Africa

 

Anglo American announces that its jointly owned renewable energy venture with
EDF Renewables, Envusa Energy, has completed the project financing for its
first three wind and solar projects in South Africa. The terms and structure
of this non-recourse project financing are typical of high-quality renewable
energy infrastructure assets. These three renewable energy projects, known as
the Koruson 2 cluster of projects and located on the border of the Northern
and Eastern Cape provinces of South Africa, will have a total capacity of
520MW of wind and solar electricity generation.

 

Themba Mkhwanazi, Anglo American's Regional Director for Africa and Australia,
said: "The successful project financing of these initial projects marks our
first major step towards addressing Anglo American's largest remaining source
of Scope 2 emissions - our electricity supply in Southern Africa. As we make
progress towards our 2040 carbon neutral operations commitment, we also see
the opportunity to enhance energy reliability and grid resilience in South
Africa. We expect that energy availability to help catalyse extensive
socio-economic activity, playing a critical role in unlocking South Africa's
economic development and growth prospects."

 

The projects - the Umsobomvu Wind project (140MW), the Hartebeesthoek Wind
project (140MW), and the Mooi Plaats Solar project (240MW) - form part of
Envusa Energy's mature pipeline of wind and solar projects in South Africa.
The renewable energy ecosystem that Envusa Energy plans to develop is expected
to supply a mix of renewable energy, generated both on Anglo American's sites
in the Southern African region, and from other sites from which renewable
energy will be transmitted via the national grid.

 

The Koruson 2 wind and solar projects benefit from outstanding yield
resources, coupled with a robust Eskom grid connection. This configuration
promises considerable electricity cost savings compared to existing tariffs.
Anglo American's three businesses in South Africa (Anglo American Platinum,
Kumba Iron Ore, and De Beers), have committed to 20-year offtake agreements
with Envusa Energy. These agreements will see Anglo American Platinum
receiving 461MW of supply, Kolomela mine 11MW, and Venetia mine 48MW. All
projects are to reach commercial operation during 2026. This inaugural phase
of contracts is expected to abate approximately 2.2 million tonnes per year of
carbon dioxide.

 

Nolitha Fakude, Chair of Anglo American's Management Board in South Africa and
Chair of Envusa Energy, said: "We are delighted with the progress we are
making in setting up Envusa Energy for long-term success as a major renewables
powerhouse in South Africa. Achieving financial closure for these three
high-quality renewable energy projects marks a crucial milestone in support of
Anglo American's global decarbonisation journey and bolsters South Africa's
pursuit of a resilient and clean energy future.

 

"We believe that the energy transition offers a unique opportunity to generate
substantial new economic opportunities as part of South Africa's journey
towards an inclusive, sustainable, and low-carbon economy."

 

Tristan de Drouas, CEO at EDF Renewables in South Africa, said: "Collaborating
with Anglo American to apply our extensive global expertise in renewable
energy infrastructure development, design, and delivery, has been immensely
rewarding. With Envusa Energy being developed as a jointly owned venture with
Anglo American, we have solidified our long-term commitment to South Africa's
transition to clean energy.

 

"The financial close of this initial cluster of projects is the first step
towards Envusa Energy's ambition to roll out 3 to 5 GW of wind, solar and
storage projects by 2030.

 

"These collective initiatives align seamlessly with EDF Group's CAP 2030
strategy. This strategy is ambitiously focused on doubling our net renewable
installed energy capacity globally (including hydropower) from 28 GW in 2015
to 60 GW by 2030."

 

In line with both companies' commitment to supporting a just energy
transition, Envusa Energy is exploring a range of black economic empowerment
(BEE) and community partnership models that will enable businesses and host
communities to share in the benefits created by the development of the
renewable energy ecosystem, along its value chain. The first of these
empowerment initiatives includes the incorporation of a 20% equity investment
by Pele Green Energy (Pty) Ltd (an established South African independent power
producer) into each of the three project companies delivering the development
of the Koruson 2 assets, alongside the establishment of a community trust to
manage the financial interests of local communities in the Koruson 2 assets.

 

Envusa Energy is also in the process of implementing the incorporation of a
BEE partner at the business level to further demonstrate our commitment to
supporting black economic empowerment. The development of the renewable energy
ecosystem presents 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.

 

 

 

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

                                                                                  Juliet Newth

                                                                                  juliet.newth@angloamerican.com (mailto:juliet.newth@angloamerican.com)
 Rebecca Meeson-Frizelle

                                                                                  Tel: +44 (0)20 7968 8830
 rebecca.meeson-frizelle@angloamerican.com

 (mailto:rebecca.meeson-frizelle@angloamerican.com)

 Tel: + 44 (0)20 7968 1374                                                          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

 South Africa :

 Sue Parker-Smith

 Sue.parker-smith@edf-re.co.za (mailto:Sue.parker-smith@edf-re.co.za)

 Tel : +27 (0) 82 551 1101

 France :

 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 copper, nickel, platinum group metals, diamonds
(through De Beers), and premium quality iron ore and steelmaking coal - 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)

 

 

 

 

 

In this document, references to "Anglo American", the "Anglo American Group",
the "Group", "we", "us", and "our" are to refer to either Anglo American plc
and its subsidiaries and/or those who work for them generally, or where it is
not necessary to refer to a particular entity, entities or persons. The use of
those generic terms herein is for convenience only, and is in no way
indicative of how the Anglo American Group or any entity within it is
structured, managed or controlled. Anglo American subsidiaries, and their
management, are responsible for their own day-to-day operations, including but
not limited to securing and maintaining all relevant licences and permits,
operational adaptation and implementation of Group policies, management,
training and any applicable local grievance mechanisms. Anglo American
produces group-wide policies and procedures to ensure best uniform practices
and standardisation across the Anglo American Group but is not responsible for
the day to day implementation of such policies. Such policies and procedures
constitute prescribed minimum standards only. Group operating subsidiaries are
responsible for adapting those policies and procedures to reflect local
conditions where appropriate, and for implementation, oversight and monitoring
within their specific businesses.

 

Disclaimer

This document is for information purposes only and does not constitute, nor is
to be construed as, an offer to sell or the recommendation, solicitation,
inducement or offer to buy, subscribe for or sell shares in Anglo American or
any other securities by Anglo American or any other party. Further, it should
not be treated as giving investment, legal, accounting, regulatory, taxation
or other advice and has no regard to the specific investment or other
objectives, financial situation or particular needs of any recipient.

 

Forward-looking statements and third party information

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, prospects and projects (including
development plans and objectives relating to Anglo American's products,
production forecasts and Ore Reserve and Mineral Resource positions) and
sustainability performance related (including environmental, social and
governance) goals, ambitions, targets, visions, milestones 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, unanticipated downturns in business relationships
with customers or their purchases from Anglo American, mineral resource
exploration and project development capabilities and delivery, recovery rates
and other operational capabilities, safety, health or environmental incidents,
the effects of global pandemics and outbreaks of infectious diseases, the
impact of attacks from third parties on our information systems, natural
catastrophes or adverse geological conditions, climate change and extreme
weather events, the outcome of litigation or regulatory proceedings, the
availability of mining and processing equipment, the ability to obtain key
inputs in a timely manner, the ability to produce and transport products
profitably, the availability of necessary infrastructure (including
transportation) services, the development, efficacy and adoption of new or
competing technology, challenges in realising resource estimates or
discovering new economic mineralisation, the impact of foreign currency
exchange rates on market prices and operating costs, the availability of
sufficient credit, liquidity and counterparty risks, the effects of inflation,
terrorism, war, conflict, political or civil unrest, uncertainty, tensions and
disputes and economic and financial conditions around the world, evolving
societal and stakeholder requirements and expectations, shortages of skilled
employees, unexpected difficulties relating to acquisitions or divestitures,
competitive pressures and 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
included in this document is sourced from third party sources (including, but
not limited to, externally conducted studies and trials). 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.

©Anglo American Services (UK) Ltd 2024.  (TM) and (TM) are trademarks of
Anglo American Services (UK) Ltd.

 

 

Legal Entity Identifier: 549300S9XF92D1X8ME43

 

EDF Renewables is an international energy company which develops, builds and
operates renewable power generation plants. As a major player in the energy
transition worldwide, EDF Renewables deploys, within EDF, competitive,
responsible and value-creating projects. In every country, our teams show
their commitment to local stakeholders every day, adding their expertise and
capacity for innovation to the fight against climate change.

 

At the end of 2022, EDF Renewables operates a net installed wind and solar
capacity of 11.4 GW (18.5 GW gross) worldwide. Mainly present in Europe and
North America, EDF Renewables is pursuing its development by taking a position
in promising emerging markets such as: Brazil, China, India, South Africa and
in the Middle East. Historically active in onshore wind and photovoltaics, the
Company is now strongly positioned on offshore wind and floating wind as well
as in new technologies such as energy storage, floating solar and
agrivoltaism.

For more information: https://edf-renouvelables.com/en/
(https://edf-renouvelables.com/en/)

 

In South Africa, EDF Renewables is a leading independent power producer, with
an installed capacity of 142MW and 1200MW under construction.

For more information: www.edf-re.co.za (http://www.edf-re.co.za)

 

 

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