Can you give an overview of Seriti and the company’s role in the South African mining industry?
Seriti is a 91% black-owned and controlled South African mining company co-owned by four anchor shareholders - Community Investment Holdings, Masimong Group Holdings, Zungu Investments Company, and Thebe Investment Corporation. These shareholders came together when the opportunity arose to acquire Anglo American’s coal assets in 2017. We successfully secured three collieries - New Vaal, New Denmark, and Kriel - which are dedicated to supplying coal to Eskom power stations. In the transaction, we were also able to acquire the New Largo asset, a resource of 585 million mt and the potential to become a large-scale, long-life coal mine, able to supply Eskom’s adjacent Kusile power station with around 12 million mt/y of thermal coal over 50 years.
Having operated these three mines successfully for three years, Seriti made an offer to acquire South32’s SA Coal Holdings Proprietary Limited (SAEC). Seriti sees it as a good opportunity to grow and enter the export market. SAEC been renamed Seriti Power.
Beyond coal, we will look for opportunities in, for example, manganese mining and others.
What investments is Seriti exploring to increase the company’s presence in the renewable energy space?
If the opportunity arises for Seriti to become a player in the alternative energy generation space, we will not hesitate to take it. South Africa will, however, continue to depend on coal-fired power for at least another 20 years. The energy transition will reduce local demand for coal, but the export market will continue to offer opportunities.