FIFI PETERS: Let’s get to that actually juicy funding, a giant funding, main funding, that was introduced at the moment by Rio Tinto, the second mining firm this week to announce a serious transfer within the renewable power house that can assist power its mines ultimately. It is partnering with France’s Voltalia to arrange the Bolobedu photovoltaic power plant that can provide as much as 300 gigawatt hours yearly to the nationwide power grid.
Earlier this week you’ll keep in mind that Anglo American introduced one thing comparable, speaking a couple of renewable funding, additionally with an organization that has French ties right here in South Africa.
We’ve acquired Werner Duvenhage, the managing director of the Richards Bay Minerals mine, which is owned by Rio Tinto, [with us]. Werner, thanks a lot on your time. Is this about decreasing your dependence on Eskom with the fixed power cuts, is it about decreasing your environmental footprint, or is it a mixture of each?
WERNER DUVENHAGE: Good afternoon, Fifi. I feel we will say it’s a little bit of each. First of all, it’s primarily as a result of we need to scale back our carbon footprint. That was the driving power. But in fact there are advantages that come with it, and that can make us much less reliant on Eskom as effectively.
FIFI PETERS: It’s fascinating to see the tempo of offers which can be being introduced by your sector proper now, simply ramping up in your renewables capability. One has to marvel in regards to the timing and whether or not it has something to do with the truth that regulation within the house has develop into a little bit extra beneficial of late.
WERNER DUVENHAGE: Yes. You know, Rio Tinto made some commitments a few years in the past, final 12 months particularly, round carbon abatement, with very clear targets for 2025, 2030 and past. We’ve been working truly for fairly some time on getting new renewable initiatives off the bottom and signed off into formal agreements. And it has definitely helped with the regulation adjustments; that has positively helped us to expedite this course of.
FIFI PETERS: So when it comes to getting this explicit challenge off the bottom, you do information that you’re set to start out with building subsequent 12 months, it will appear, and that will final a couple of 12 months. So when it comes to the paperwork and regulatory approvals, is that every one accomplished and dusted?
WERNER DUVENHAGE: It’s virtually accomplished and dusted. That’s why we’re not beginning this 12 months. There are just a few [things] they name the ‘financial flow’ that must be finalised within the subsequent couple of months. But Voltalia has banks on board, South African banks, which can be funding the challenge and have already accredited it. Most of the regulatory approvals are additionally in place. So not 100%, however very near it, and all the things is in place.
FIFI PETERS: And how a lot is that this all going to value?
WERNER DUVENHAGE: Well, Voltalia has not introduced the price of the challenge but, and hopefully they may achieve this quickly. But what I can inform you is that the charges we can be charged by Voltalia, together with the transmission price or the wheeling settlement price by Eskom, offers us charges which can be decrease than the present Eskom charges. So from our perspective it’s even financially an excellent final result.
FIFI PETERS: Talk to us virtually about how that is going to work – this 300GW hours yearly. Is this all for the Richards Bay Minerals mine?
WERNER DUVENHAGE: It’s all for the Richards Bay Minerals mine, the place we eat at the moment 1.3 terawatts to 1.8 terawatts of power. That’s simply lots of numbers, however about 10% of our carbon footprint can be diminished by this.
And what it means successfully is that this challenge is in Limpopo, the place it is going to feed into the grid, and people items can be given as a credit score to us right here in Richards Bay, on the operations.
And then there’s a charge for dealing with that switch. So theoretically it’s meant for us, however in observe it’s further power that goes into the grid, and we take the power from the identical [source].
FIFI PETERS: It sounds actually fascinating. But I’m additionally focused on a separate subject [that’s] a bit left area out of your announcement, however maybe doubtlessly related to your mines proper now. The labour scenario at Transnet – is that this a priority for you, the strike, and significantly if that strike lasts longer than many hope?
WERNER DUVENHAGE: It’s very vital to us and we’ve been monitoring it since early this morning. All our exports go through the port of Richards Bay, which is simply on our doorstep, and 95% of our product will get exported. So it’s actually, actually vital for us, particularly protecting in thoughts that we have been sitting with bottlenecks early within the 12 months that actually made it troublesome for us to get our product exported, and we’ve lastly simply caught up on that. We are very fearful about this case with Transnet.
FIFI PETERS: Yourselves and Thungela. It would appear, although, Thungela has introduced that it’s assured that will probably be capable of mitigate the worst-case state of affairs.
But Werner, thanks a lot on your time in taking the questions. Werner Duvenhage is managing director of Richards Bay Minerals.