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Envusa Energy completes project finance for 520MW of wind and solar projects in South Africa
Anglo American plc (the "Company")
Registered office: 17 Charterhouse Street, London EC1N 6RA
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
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
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 8718
Marcelo Esquivel Emma Waterworth
marcelo.esquivel@angloamerican.com Emma.waterworth@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0) 20 7968 8574
Rebecca Meeson–Frizelle Juliet Newth
rebecca.meeson-frizelle@angloamerican.com juliet.newth@angloamerican.com
Tel: + 44 (0)20 7968 1374 Tel: +44 (0)20 7968 8830
South Africa Michelle Jarman
Nevashnee Naicker michelle.jarman@angloamerican.com
nevashnee.naicker@angloamerican.com Tel: +44 (0)20 7968 1494
Tel: +27 (0)11 638 3189
Sibusiso Tshabalala
sibusiso.tshabalala@angloamerican.com
Tel: +27 (0)11 638 2175
Nompumelelo Kunene
nompumelelo.kunene@angloamerican.com
Tel: +27 (0)66 484 5522
EDF
South Africa :
Sue Parker-Smith
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
The Company has a primary listing on the Main Market of the London Stock Exchange and secondary
listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the Namibia Stock Exchange
and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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
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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/
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
Date: 29-02-2024 09:32:00
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