REG - Tharisa PLC - Tharisa signs long term renewable PPA

TharisaAnnouncement

25/07/2024 07:00

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RNS Number : 7114X  Tharisa PLC  25 July 2024

Tharisa plc

(Incorporated in the Republic of Cyprus with limited liability)

(Registration number HE223412)

JSE share code: THA

LSE share code: THS

A2X share code: THA

ISIN: CY0103562118

LEI: 213800WW4YWMVVZIJM90

('Tharisa' or the 'Company')

 

THARISA ACCELERATES ITS DECARBONISATION STRATEGY VIA SIGNED WIND AND SOLAR
WHEELING AGREEMENT

Tharisa, the mining, metals, and innovation company dual-listed on the
Johannesburg and London stock exchanges, has entered into a long-term Power
Purchase Agreement ('PPA') for the procurement of wheeled renewable energy for
the Tharisa Mine, situated on South Africa's western limb of the Bushveld
Complex.

The 15-year agreement with Etana Energy Proprietary Limited ('Etana') will see
Etana provide up to 44% of the Tharisa Mine's electricity energy demand via
wheeled energy from wind and solar farms in the Western Cape and Northern Cape
using the existing electricity transmission grid. The wheeled energy is
planned to come on stream in 2026. This transaction will enable the Tharisa
Mine to better manage its power costs and benefit from the renewable energy
certificates arising from the transaction. This wheeled energy will complement
the Tharisa Mine's 40 MW solar power plant being developed by TotalEnergies
Renewables South Africa Proprietary Limited and Chariot Transitional Power
South Africa Proprietary Limited, which is designed to provide 30% of Tharisa
Minerals energy needs.

Importantly, the Etana PPA and the solar project will ensure that Tharisa
Minerals' drive to reduce its carbon footprint by 30% by 2030 is well within
reach while simultaneously guaranteeing pre-determined power costs for a
portion of power needs, with up to 76% of Tharisa Minerals' energy needs being
provided by renewable energy from 2026 onwards under these agreements.

Etana was granted an energy trading licence in May 2022 for a period of 25
years and is one of five companies to hold energy trading licences in South
Africa. Etana has signed and announced several other customer PPAs, including
from other mining ventures and property companies.

Lucien Matthews, Executive Special Projects of Tharisa, commented:

"This second major renewable energy project is the natural progression in our
quest to reduce our reliance on fossil fuel driven energy, and a major
component of creating the sustainable resources company of the future. With
established partners in the renewable energy space, I am certain we will not
only meet but exceed our carbon reduction targets both in quantum and in terms
of our set timeline of 2030.

I must commend the Tharisa team and our partners in the strategic and
commercial swiftness in attaining this significant outcome, as both these
aspects will ensure we maintain control on our operating costs base which is a
vital cog in our drive for sustainability of our multi-generational resource."

Evan Rice, CEO of Etana Energy commented:

"We are delighted to have been entrusted as Tharisa's partner to help realise
their ambitious sustainability objectives. This transaction demonstrates how
Etana can provide its partners with solutions that give them the comfort to
enter into long term agreements. This really is the added value that an
aggregator can bring to energy consumers looking to rapidly shift to low
carbon energy. We are grateful for Tharisa's partnership, which is helping us
achieve Etana's mission to unlock significant new renewable energy generation
capacity in South Africa, with benefits for our customers, the country and the
environment."

 

Paphos, Cyprus

25 July 2024

JSE Sponsor

Investec Bank Limited

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Investor Relations Contacts:

Ilja Graulich (Head of Investor Relations and Communications)

+27 11 996 3500

+27 83 604 0820

igraulich@tharisa.com (mailto:igraulich@tharisa.com)

Broker Contacts:

Peel Hunt LLP (UK Joint Broker)

Ross Allister / Georgia Langoulant

+44 207 418 8900

 

BMO Capital Markets Limited (UK Joint Broker)

Thomas Rider / Nick Macann

+44 207 236 1010

 

Berenberg (UK Joint Broker)

Matthew Armitt / Jennifer Lee / Detlir Elezi

+44 203 207 7800

 

About Tharisa

Tharisa is an integrated resource group critical to the energy transition and
decarbonisation of economies. It incorporates exploration, mining, processing
and the beneficiation, marketing, sales, and logistics of PGMs and chrome
concentrates, using innovation and technology as enablers. Its principal
operating asset is the Tharisa Mine, located in the south-western limb of the
Bushveld Complex, South Africa. The mine has a 13-year open pit life and is
strategically accelerating access to the vast underground resource which
extends for over 60 years. Tharisa is developing the Karo Platinum Project, a
low-cost, open-pit PGM asset located on the Great Dyke in Zimbabwe. The
Company is committed to reducing its carbon emissions by 30% by 2030 and the
development of a roadmap to become net carbon neutral by 2050. As part of this
energy transition, the 40 MW solar project adjacent to the Tharisa Mine is
well advanced. Redox One is accelerating the development of a proprietary iron
chromium redox flow long duration battery utilising the commodities we mine.
Tharisa plc is listed on the Johannesburg Stock Exchange (JSE: THA) and the
Main Board of the London Stock Exchange (LSE: THS).

 

About Etana Energy:

Etana Energy is a licenced electricity trader that supplies electricity
generated by renewable energy projects to businesses in South Africa, using
the national electricity grid. Etana's customers benefit from certified
low-carbon electricity at tariffs competitive with Eskom or municipal supply,
forward price certainty, flexible contracting terms and qualifying B-BEEE
expenditure.

 

 

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