Press Releases

Mafube Coal, as part of its corporate social investment (CSI) programme, in partnership with Barloworld, handed over a newly constructed library to Beestepan Agricultural High School. The school is located on the Beestepan Broedery farm serving approximately 400 learners from Ward 7 and 9 of the Steve Tshwete Local Municipality. This is a significant project providing a learning space with resources to support and enhance learning. Mogodi Mahapa, mining manager at Mafube Coal said, “This library will play a crucial role in fostering informed learners and promoting access to information.

Learners will now have access to resources to conduct research and engage in a variety of learning activities that were previously inaccessible due to the lack of facilities in the area. This initiative demonstrates our commitment to improving access to quality education and skills development in communities where we operate. We look forward to seeing the positive impact that the library will have on the learners and the broader community.”

Lesego Ramatlhape, Head: Transformation, Diversity and Inclusion at Barloworld said: “We are proud to have partnered with Mafube Coal in developing this fully equipped facility that will help learners of this community with resources and provide study spaces, promoting literacy and a culture of social cohesion.” Ms Cathy Dlamini, MEC of the Mpumalanga Department of Education, expressed gratitude for the collaborative effort that marks the handover of the library. "Investing in education infrastructure in communities such as this one is highly crucial. The library will provide our learners with essential resources that will help them excel academically and enable them to achieve success and build a brighter future for themselves."

“Libraries remain essential in our schools and communities, even in the digital age. They provide crucial support for learning, and offer free educational resources, particularly for areas with network access challenges. This ensures every learner has the opportunity to succeed, regardless of the lack of access to Wi-Fi facilities or financial resources,” she said.

Councillor Mhlonishwa Masilela, Executive Mayor of the Steve Tshwete Local Municipality, highlighted the importance of the new facility for the learners in the Beestepan Broedery farm community. "The library is a much-needed addition to our community. This project is an excellent example of how private sector and local government can work together to make a lasting impact in our communities, particularly in rural areas where resources are limited," he said.

Local company Rospa Trading was commissioned to execute the project, which created 25 jobs, including seven full-time positions, three of which were held by women.

ENDS

Today, Thungela handed over a newly constructed art studio in the form of a modern hut, to Dr Esther Mahlangu at her home in Mthambothini, KwaNdebele, Mpumalanga. Affectionately known as Gogo Esther Mahlangu, the world-renowned icon has shared her bright and colourful patterns of the Ndebele nation across the globe for years. Her work of art has travelled far, from the walls of her village to famous galleries worldwide.

The art studio is a dedicated space where Gogo Esther can display her artistic legacy easily accessible to the community. The presence of her work will inspire future generations of talented creatives in the area. In addition, the art studio is a new addition to the tourism landscape of Mpumalanga, and it will hopefully encourage local tour guides and stimulate the tourism economy.

July Ndlovu, Thungela CEO, acknowledged the significance of supporting Gogo Esther's work, saying: “As South Africa celebrates Heritage month, Thungela is honoured to contribute to the legacy of an iconic figure whose work has put the Ndebele art on the global map. When the Mpumalanga Government made a call for us to build a structure for Dr Mahlangu, we heeded the call and came onboard.”

“This art studio will allow her to showcase her work to the local community and to tourists in this province. Here at her home, many will cherish and celebrate this rich Ndebele cultural heritage through her work.”

“Our involvement in this project stems from our deep-rooted presence in the Mpumalanga province, where all our South African operations are situated. In addition, as a business we are committed to respecting and preserving the culture, traditions, customs, and values of the communities where we operate.”

The opening of the art studio is a dream come true for Gogo Esther. She said, “This studio is not just for me, but for the entire KwaNdebele nation. Today, I am filled with gratitude, and I want to thank Thungela, the Mpumalanga government, our traditional leaders, and partners who were involved in making this art studio possible. This art studio will help inspire local youth, and particularly those interested in the arts. I also hope that tourists and visitors from other cultures will better appreciate our rich Ndebele culture as they interact with my work when they visit the studio.”

Gogo Esther has already started the journey to educating local youth about art. She has founded the Esther Mahlangu Art School in her village, dedicated to preserving and passing on traditional Ndebele painting techniques to younger generations, ensuring that the art form remains vibrant and relevant for years to come.

Thungela’s contribution to this initiative promotes the arts while supporting local entrepreneurship to help create economic opportunities that will benefit the community for generations to come.

ENDS

Thungela and the Council for Geoscience (CGS) have signed a memorandum of understanding (MoU) to advance research into emission reduction technologies, focusing on carbon capture, utilisation, and storage (CCUS). This collaboration aligns with Thungela’s advocacy for accelerated deployment of technologies including CCUS, that mitigate the emissions from coal combustion.

This strategic partnership aims to invest in geoscience-based solutions that support national priorities and international climate agreements, including South Africa’s nationally determined contributions (NDCs) under the Paris Agreement.

This MoU supports the country’s Just Transition Framework, adopted in 2022, paving the way for a diversified energy mix and aligns with climate and development goals. Through this partnership, the two organisations will collaborate on critical activities, including geological mapping, climate change research, and groundwater modelling. The goal is to produce impactful research and practical solutions that address both environmental and economic challenges.

July Ndlovu, Thungela chief executive officer, said: “We are committed to embracing technologies that reduce emissions from coal combustion, ensuring a sustainable global future. As a coal producer and exporter, we recognise the importance of adapting and mitigating emissions. Through this partnership, we will contribute to climate change efforts by developing and implementing geoscience-based solutions that support national priorities and international climate agreements.”

Mosa Mabuza, CEO of the Council for Geoscience, highlighted the importance of this new partnership, saying: “Less than two weeks ago, Minister Mantashe called for stronger public-private partnerships to help South Africa meet its climate commitments. Today’s signing represents a collaborative effort to drive research, development, and implementation of geoscientific programs. The Council for Geoscience is excited about this development, which brings together the expertise and resources necessary to tackle one of the most pressing challenges of our time: carbon emissions.

“By combining our expertise, Council for Geoscience and Thungela are setting the stage for significant advancements in carbon capture and sustainable resource management. This partnership reflects our joint dedication to addressing climate challenges and promoting scientific progress that benefits South Africa and beyond.”

Together, we are working towards a sustainable energy future and the ambitious target of achieving net-zero carbon emissions by 2050.

ENDS

Nkulo Community Partnership Trust (“Nkulo Trust” or the “Trust”) has made its maiden donation to communities hosting its founding company, Thungela. The donation of essential healthcare supplies seeks to strengthen healthcare services to the Witbank hospital, while the honeysucker truck will go a long way in improving sanitation services for the Steve Tshwete Local Municipality (STLM).

The Nkulo Trust is a community development vehicle established to create genuine impact, by investing in legacy-changing socio-economic development projects. The Trust has identified education and skills development, health, welfare and social orientation and growth in alternative economies as areas of focus.

The Witbank Tertiary Hospital is a critical facility serving the Gert Sibande and Nkangala districts. The hospital provides specialised services such as ear, nose and throat, ophthalmology, obstetrics and gynaecology, internal and family medicine, orthopaedics, neurosurgery, general surgery, anaesthesiology, critical care, maxilla facial and paediatrics. It admits twenty (20) high-care patients daily, many of whom require prolonged stays due to severe medical conditions. The Nkulo Trust’s donation of essential supplies and medical resources valued at approximately R6 million includes essentials that are instrumental to the strengthening the Hospital’s capacity to deliver high-quality care to critically ill patients.

Sasekani Manzini, MEC for the Mpumalanga Department of Health, said: “These supplies donated by the Nkulo Trust today, will go a long way in improving the level of care at the Witbank Tertiary Hospital, ensuring that our healthcare workers can focus on providing the best possible clinical care for members of the community.”

The Steve Tshwete Local Municipality operates two honeysucker trucks for unblocking sewerage drainage pipes, draining septic tanks, servicing pit toilets, providing sanitation services and managing wastewater treatment. One of these trucks has been experiencing severe breakdowns and needed an entire septic tank replaced, leading to substantial service delivery disruptions. The donation of a 16,000- litre honeysucker truck valued at over R2 million will ensure that municipality provides uninterrupted sanitation services to rural and remote communities that rely on mobile sanitation services.

Mpumi Sithole, Nkulo Trust’s interim chairperson, said: “From inception, the Trust has prioritised engaging and collaborating with communities to address real and pressing needs. When government made a clear call for private sector to collaborate on its programmes, as Nkulo Trust we responded with committing to working together to strengthen the healthcare system and working to guarantee quality healthcare and timeous sanitation services.”

She added: “The donations will contribute significantly to the overall health and well-being of the region’s residents.”

Speaking during the handover ceremony held in Middleburg, councillor Mhlonishwa Masilela, Executive Mayor of Steve Tshwete Local Municipality, expressed gratitude for the Nkulo Trust's contribution, noting its importance in supporting the outlying areas. "This donation comes at a critical time for our municipality,” he said. “The truck will help us maintain sanitation standards in areas that have long been underserved. It is through partnerships like this that we can address our community's most pressing needs and create a healthier, safer environment for all our residents.”

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KEY FEATURES

• Safety: Lowest total recordable case frequency rate (TRCFR) of 0.99 in South Africa, with significant safety progress in Australia.
• Production: Group export saleable production at 7.8Mt, with South Africa contributing 6.2Mt and 1.6Mt in Australia (on an 85% basis), exceeding initial estimates and leading to a guidance upgrade in Australia.
• Capital expenditure (capex): Group capex amounted to R1.5 billion, reflecting the disciplined execution of life extension projects in South Africa.
• Profit: Profit of R1.2 billion, including R419 million from Australia, demonstrating the benefits of the geographic diversification strategy.
• Total shareholder returns: Total shareholder returns of R441 million, consisting of an ordinary interim cash dividend of R281 million (R2.00 per share) and a share buyback of up to R160 million - in aggregate 47% of adjusted operating free cash flow.

Thungela Resources Limited (“Thungela” or the “Group”), a pure-play producer and exporter of thermal coal operating in South Africa and Australia, has announced its interim financial results for the six months ended 30 June 2024. The results demonstrate our track-record of disciplined execution of our strategic priorities as we build a long-life, competitive business. Our operational performance is in-line with 2024 guidance in South Africa and ahead of full year guidance in Australia. Capex for our two life extension projects remains on track and on budget. We remain steadfast in our focus on controlling the controllables.

The operating environment in the first half of the year was challenging with external factors such as weaker Richards Bay and Newcastle Benchmark coal prices and underperformance by Transnet Freight Rail (TFR). Thungela values the efforts made by Transnet's new leadership team to enhance operational performance and remains committed to continuing collaborating with TFR to improve rail performance.

July Ndlovu, CEO of Thungela, said: “Safety is our first value, and we have reinforced its primacy by establishing safety as a dedicated pillar in our strategic priorities framework. As always, we remain unwavering in our commitment to operating a business free from injuries and fatalities and we are pleased to report that our business has been operating for 18 months without loss of life. Our increased focus on accountability, safety culture and independent reviews on critical controls effectiveness, is delivering meaningful safety improvements. The Group’s TRCFR for the period under review improved to 1.75 compared to 2.53 in the comparative period.

The Group recorded an adjusted EBITDA of R2.1 billion and a net profit of R1.2 billion, with Ensham contributing R419 million to the net profit, showcasing that our geographic diversification journey into Australia is proving successful. Capex of R1.5 billion in the first half of the year was in line with the guidance for 2024, with R457 million spent on sustaining capital and R799 million spent on expansionary capital.

Our life extension projects in South Africa, Elders and Zibulo North Shaft are key to improving our long-term competitiveness and will extend the life of mine of our South African operations from the initial eight years at listing in 2021, to approximately 15 years.”

Operational performance

In South Africa, we achieved export saleable production of 6.2Mt, at a free on board (FOB) cost* of R1,189 per export tonne excluding royalties for the first half of 2024, at the lower end of our guidance for 2024.

In Australia, Ensham’s strong production delivered export saleable production of 1.9Mt (on an 100% basis), as the mine focuses on improving productivity and leverages from the Group’s operational expertise. FOB cost* was below guidance at R1,360 per export tonne excluding royalties. R285 million was spent on sustaining capital (on an 85% basis), in line with guidance for the full year.

Marketing capability

Thungela Marketing International, which was established in the United Arab Emirates, is now fully operational and is responsible for marketing our South African and Australian coal. This provides us with an opportunity to leverage our equity coal, by maximising value from the extraction of the resource in the ground to delivering the product to end-users and customers.

Thermal coal markets and rail performance

According to the International Energy Agency's coal update, global demand for thermal coal reached a record high of 8.7 billion tonnes in 2023 and is expected to remain stable in the coming years. Despite declining coal consumption in the United States and Europe, coal plays a vital role in global energy production for electricity, steel, and cement production. The growing demand from Asian countries surpasses global efforts to phase out coal, delaying the energy transition. Energy security is now a top priority amid geopolitical tensions and the risk of supply disruptions.

As we enter the winter season in the northern hemisphere, we expect gas and coal restocking to commence even though a number of countries had fairly high coal and gas stocks coming to the end of summer. TFR railed 47.3Mt on an annualised basis, compared to the 47.9Mt in 2023. The industry's ongoing support has enabled progress on some interventions, such as purchasing critical locomotive spares and providing security on the rail line. We believe that the correct building blocks are being implemented by TFR, and we expect to see improved rail performance during 2025.

Capital allocation

In June 2024, we completed the repurchase of ordinary shares for a consideration of R441 million, representing 2.35% of the issued share capital. This demonstrates our commitment to shareholder returns and acknowledges the diverse preferences of our shareholder base.

We invested R742 million in sustaining capital, leading to an adjusted operating free cash flow of R936 million. Additionally, we continued to invest in securing the future and competitiveness of our business through life extension projects, with an additional R799 million spent on expansionary capital. In Australia, we contributed R855 million to an investment vehicle to secure financial guarantees for Ensham rehabilitation liabilities.

We also made the required annual contribution of R188 million to the green fund in South Africa, enhancing our environmental liability coverage. The Group’s net cash position was R6.7 billion at 30 June 2024. This figure includes cash in Australia amounting to R815 million pending the settlement of the Japanese Reference.

The board remains committed to our dividend policy, which is to distribute a minimum of 30% of adjusted operating free cash flow* and has accordingly declared an interim ordinary cash dividend of R2.00 per share. In addition, the board has approved a share buyback of up to R160 million, subject to favourable market conditions, which in aggregate amounts to a total return of R441 million to shareholders, representing 47% of adjusted operating free cash flow for the first half of 2024. The share buyback is expected to be completed during the second half of 2024 and is pursuant to the authority obtained at the Group’s most recent annual general meeting in June 2024.The Sisonke Employee Empowerment Scheme and the Nkulo Community Partnership Trust will collectively receive a further R31 million.

Emphasising the significance of our life extension projects in South Africa, we continue to reserve R1.7 billion to fund the completion of these projects. As a result of the dividend declaration and share buyback, the cash buffer will reduce to approximately R4.4 billion, which is within the range of R3 billion to R5 billion. The Group holds undrawn credit facilities of R3.2 billion, enabling us to maintain sufficient liquidity and balance sheet flexibility in the current market conditions.

Looking ahead

Ndlovu concluded: “Our promise that everyone returns home safely everyday is unconditional and sacrosanct. It infuses all activities in our business. We remain focused on controlling the controllables. Our strategic positioning and disciplined capital allocation ensures we capitalise on long-term fundamentals supporting coal demand globally. We are optimistic about the future and remain committed to deliver on our purpose – to responsibly create value together for a shared future – and that Thungela delivers value for our people, communities and shareholders over the long term.

Footnote:

Group financial results for the six months ended 30 June 2023 do not include the financial results of the Ensham Business as the effective date of the Ensham acquisition was 31 August 2023.

*Alternative performance measures are not defined or specified under the IFRS Accounting Standards and are used by management to monitor our performance and improve the comparability of information between reporting periods.

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Thungela’s Zibulo Colliery officially handed over newly built and refurbished facilities to the Zamelani Abadala Centre for the Aged as part of their social and labour plan (SLP). The centre provides care and support for 120 elderly people in the Lebohang and Leandra communities in the Govan Mbeki Municipality. In addition, the dedicated volunteers also provide home-based care for over 60 elders who are unable to visit the centre.

At the centre, the elderly are served with nutritional meals, and are encouraged to exercise and participate in sports activities, adult education, and crafts in a relaxed and safe environment. The R3.2 million centre boasts a consultation and examination room where the Department of Health and Social Development provides healthcare and social services. It also has a fully equipped kitchen, bathing facilities, offices for on-site caregivers, a dining hall, and a greenhouse for vegetable gardening.

This SLP is in line with our impact goal of enhancing services and improving the quality of life within host communities. The construction of the centre was awarded to a host community supplier, Nothas Enterprise. More than 20 community members were employed during the construction of the centre. Eight other local companies carried out various other services including landscaping, plumbing, glass fitting, electric work, security and transportation.

Eugene Moremi, Zibulo Colliery general manager, said: “These facilities have not only transformed the physical space of the centre, but has also brought renewed hope, dignity, and comfort for the elderly residents. For many, the centre is more than just a place of care, it’s a community where they can find companionship and support. We could not have done it alone and are grateful for the collaboration that has brought this project to life. This is how we are creating value together, for a shared future.”

During his keynote address at the ceremony, executive mayor of the Govan Mbeki Municipality, Councillor Nhlakanipho Zuma, stated, “This refurbishment project at the Zamelani Abadala Aged Group Centre highlights the importance of investing in our communities. We are grateful to Thungela for not only improving the living conditions of our elderly residents but also for empowering local enterprises and contractors from our municipality to do the same.”

In expressing his appreciation, Abednego Lukhele, chairperson of Zamelani Abadala Aged Group, remarked on the significance of the newly developed facilities. He noted the project as an achievement not only for the elderly but also the staff of local volunteers who support them. “The upgrades of the facilities will allow us to deliver essential services with dignity and respect to our elderly and also promote a sense of belonging,” said Lukhele.

Previously, the centre operated from two four-room houses, which included a simple office, storeroom, kitchen, and bathroom facilities, with a separate small dining hall for men. An asbestos building served as a dining hall, which required the residents to split into groups for meals and indoor activities.

ENDS

KEY FEATURES

• Total Recordable Case Frequency Rate (TRCFR) remained at 1.40 for the South African operations.
• Profit of R5.0 billion, includes R448 million contribution from Ensham for the four months since completion of the transaction. 
• Strong cash generation and balance sheet position maintained, with adjusted operating free cash flow of R6.8 billion and net cash of R10.2 billion.
• Declared final dividend of R10.00 per share, bringing total dividend for the year to R20.00 per share, amounting to R2.8 billion in dividends relating to 2023.
• Share buyback of up to R500 million announced, bringing total returns to shareholders to R3.3 billion.
• Delivering on our commitment to share value with a total distribution of R312 million to the Nkulo Community Partnership Trust and the Sisonke Employee Empowerment Scheme for 2023.

Thungela Resources Limited (“Thungela” or the “Group”), a leading South African thermal coal exporter with an international footprint, has announced its financial results for the twelve-month period ended 31 December 2023. Thungela has demonstrated a resilient performance that underpinned strong cash generation and a robust net cash position, which supports total returns to shareholders of R3.3 billion relating to 2023, equivalent to 49% of adjusted operating free cash flow, significantly higher than the minimum of 30% per the dividend policy.

Commenting on the results, July Ndlovu, CEO of Thungela, said: “Safety is our first value. Although we have maintained a consistent TRCFR for our South African operations, we cannot waiver in our commitment to operating a business free from fatalities and injuries. As reported previously, our colleague Breeze Mahlangu regrettably passed away in February 2023.”

“In 2023, Thungela experienced significant transformation with the acquisition of Ensham in Australia, a key milestone in the Group’s geographical diversification pathway, the approval of an extension to the life of our flagship Zibulo Colliery, and the continued execution of the Elders project. These advancements have set Thungela on a path towards a more competitive portfolio, and a longer-life business.”

“Our financial performance reflects agility in responding to market challenges, including weaker coal prices and continued rail under performance. Despite these challenges we have generated an adjusted EBITDA of R8.5 billion, adjusted operating free cash flow of R6.8 billion, and ended the year with a net cash position of R10.2 billion.”

“Since listing, the Group has consistently fulfilled its promise to distribute a minimum of 30% of our adjusted operating free cash flow to shareholders. The board has declared a final ordinary cash dividend of R10.00 per share. Together with the interim dividend of R10.00 per share, this brings our total dividend distribution to R2.8 billion for the year. When taking into account the R500 million share buyback, this means that we are returning 49% of adjusted operating free cash flow to our shareholders, affirming Thungela’s commitment to delivering attractive shareholder returns.”

Building a sustainable and long-life business across multiple geographies

The acquisition of a controlling interest in the Ensham business is a significant step in Thungela’s geographic diversification strategy, extending its footprint beyond South Africa and enhancing its coal resource base by approximately one billion tonnes. This move opens-up new markets, notably Japan and Malaysia, diversifying the customer base and providing exposure to the Newcastle benchmark coal price.

Thungela has further solidified its international presence by establishing Thungela Marketing International (TMI) in Dubai. This move is designed to market the coal produced by its South African and Australian assets; it also gives Thungela direct access to seaborne markets. Through TMI, the Group is set to enhance its relationships with customers, reflecting its intention to stay attuned to their needs, the global commodities market, and to position itself as a coal producer with an international footprint.
Maximising value from existing assets will also be critical to shaping the future business. Through the Elders and Zibulo North Shaft projects, Thungela is transforming into a long-life business with a competitive portfolio measured by all-in sustaining cost.

Our ESG performance

Building on the momentum generated by its strategic initiatives, Thungela continues to spike on the social component of ESG. We have made further contributions of R156 million to the Nkulo Community Partnership Trust and the Sisonke Employee Empowerment Scheme, bringing total contributions to these trusts for the year to R312 million.

In parallel, addressing environmental stewardship, the Group has undertaken remediation efforts, including the commissioning of a fish breeding facility, to restore aquatic life following the unfortunate environmental incident at the Kromdraai site in February 2022. Thungela has committed to executing remediation measures and averting a reoccurrence, with an end goal of achieving full ecological revival that reflects a return to pre-incident biodiversity and water quality levels.

Managing the impact of continued poor rail performance

Inconsistent and constrained performance by Transnet Freight Rail (TFR) has again severely affected the South African coal mining industry. In 2023, TFR railed 47.9Mt of thermal coal to the Richards Bay Coal Terminal (RBCT), marking a 4.8% decline compared to 2022.

Thungela continues to work closely with industry players and Transnet to remedy rail performance. Through the RBCT, industry collaborated with TFR to strengthen security measures by deploying additional security on the coal line for the past 18 months. RBCT is also helping Transnet acquire the critical spare parts, necessary for the maintenance of locomotives, from alternative suppliers.

The cost of the spares and security deployment is recovered by the coal exporting parties through the mutual cooperation agreement signed between TFR and RBCT (representing the coal exporting parties). Further collaborative efforts will address critical systems, such as signaling, to improve overall performance.

We have responded to TFR’s persistent poor performance by curtailing production at our underground mines, renting sidings to improve our distribution patterns and driving efficiencies at our rapid loading terminals. Acting swiftly and decisively in the face of rail challenges has allowed us to benefit from additional trains when they are available, and to rail 12.3Mt of export saleable volumes in 2023.

Outlook

Export saleable production guidance for South Africa in 2024 is set between 11.5Mt and 12.5Mt based on expected rail performance. FOB cost per export tonne is expected to be between R1,170 and R1,290 excluding royalties. Including royalties, the range is between R1,180 and R1,300 per tonne. Sustaining capital expenditure is expected to be between R900 million and R1,100 billion. Expansionary capex is expected to be between R1,600 million and R1,900 billion on the Elders and Zibulo North Shaft projects.

For the Ensham Business, export saleable production guidance is between 3.2Mt and 3.5Mt (on a 100% basis) based on our plans to ramp up production. FOB cost per tonne is expected to be between AUD130 and AUD140 excluding royalties. Including royalties, the range is between AUD150 and AUD160 per tonne. Sustaining capital expenditure is expected to be between AUD40 million and AUD70 million (on an 85% basis), based on historical sustaining capex spend.

Looking ahead, despite near-term headwinds, Thungela remains committed to delivering on its strategic priorities to take advantage of the long-term fundamentals supporting coal demand and stronger coal prices in key markets. In the short term, a sustainable solution to ensure efficient and reliable rail performance in South Africa is critical, and we will continue working with TFR to remedy the state of rail in South Africa.

Ndlovu concluded: “We will continue to evaluate our portfolio with a focus on strengthening our competitiveness and optimising capital allocation to maximise shareholder returns.”

Ends

Today, Thungela celebrates an innovative fish breeding facility at the Loskop Dam Nature Reserve in Mpumalanga, commissioned to restore aquatic life in the Wilge-Olifants river catchment following the unfortunate uncontrolled release of mine-impacted water from Khwezela Colliery’s Kromdraai site on 14 February 2022.

Thungela committed to rehabilitating the areas affected by this overflow and took full accountability to do what was necessary to restore the ecosystem. Through partnerships with the relevant stakeholders, Thungela developed a rehabilitation plan approved by the Department of Water and Sanitation, which included various activities aimed at restoring the environment, with particular emphasis on enhancing biodiversity to levels beyond those prior to the incident.

Through close collaboration with the Mpumalanga Tourism and Parks Agency (MTPA) and leading aquatic scientists in South Africa, Thungela embarked on a path to execute the plan successfully. Amongst the activities contained in the plan was to speed up the recovery of the fish population to restore biodiversity in the Wilge-Olifants River catchment, which resulted in the commissioning of the fish breeding facility we are unveiling today.

July Ndlovu, CEO of Thungela, said, “I am proud to witness the fulfilment of the commitment that we, as a responsible coal miner, made in 2022. To be able to implement all aspects of the rehabilitation plan, which has led to the restoration of the environment to even better conditions than we found it – is the legacy we want to leave. We hold ourselves to the highest standards as set out in our Environmental, Social and Governance (ESG) Framework.”

“Our dedication to this initiative has helped us achieve our objective of minimising impact on the environment to achieve sustainable outcomes where we operate, and we are thrilled that the partnerships we have formed with the MTPA will extend well beyond the river system’s ultimate revival. We anticipate that this facility will become a hub for research in endemic species into the future and that the MTPA will run the facility to benefit other river systems,” said Ndlovu.

With water quality having returned to pre-incident levels and a resurgence in macro invertebrate activity observed, the time is right to replenish fish stocks. Through the fish breeding project, up to sixteen native fish species will be re-introduced to the river system. These will be released as part of the launch celebration, and we will continue to breed and release fish until monitoring indicates that fish diversity and population density have returned to pre-incident levels.

In addition, Thungela has forged partnerships with other authorities, the farming community and members of society, embodying a shared vision for environmental stewardship and the well-being of neighbouring communities. This initiative not only contributes to the improvement of biodiversity in the area but also highlights Thungela's dedication to environmental restoration and sustainability - demonstrating the Company’s accountability and commitment to being a responsible steward of the environment.

 Mduduzi Vilakazi, CEO of Mpumalanga Tourism and Parks Agency, commends the collaboration: "Our partnership with Thungela showcases the significance of united efforts in conserving our region's valuable natural resources and enhancing community livelihoods. This partnership sets a precedence that ensures sustainable use of resources to benefit our communities. The best way to conserve nature is through such strategic collaborations with established economic entities that invest in environmental appreciation.”

The fish breeding facility is among several of Thungela's conservation endeavours, including the introduction of renewable energy solutions and advanced water treatment systems to protect the environment, particularly during periods of low rainfall in the area.

 We are committed to continuously share updates on the rehabilitation measures to rectify the environmental impact and averting future occurrence, with an end goal of achieving full ecological revival that reflects a return to pre-incident biodiversity and water quality levels.

Download the Thungela Rehabilitation Brochure

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Thungela received high ratings from five highly respected agencies that evaluate companies based on their environmental, social, and governance (ESG) performance. These agencies assess listed companies against a wide range of sustainability criteria, recognizing transparency and commitment to responsible practices.

Mpumi Sithole, Thungela’s Executive Head for Corporate Affairs, said: “We are immensely proud to be recognised for our outstanding environmental, social, and governance performance on a global scale. For us, this is a testament that our ESG framework and approach is entrenched in every aspect of our operations. Understanding our exposure to risks and opportunities related to ESG allows us to address and monitor them. These rankings reaffirm our dedication to transparency and fostering positive impact where we operate.”

Thungela’s ESG performance was assessed by five agencies in 2023 based on 2022 performance, including CDP, FTSE Russell, MSCI, ISS, S&P Global and Sustainalytics.

• CDP scored over 21 000 companies on their environmental disclosures and released its score report on Climate Change. In the report, Thungela received an overall B rating, setting Thungela above both the African regional average of B-, and the global coal mining sector average of C. Thungela also received an A/A- Leadership score for implementing current best practices in governance and a B/B- Management score for taking coordinated action on climate-related issues.
• On the annual FTSE Russell ESG Index, Thungela’s rating improved from 3.5 out of 5 in 2022 to 4 out of 5 in 2023, largely because of enhancements to reporting protocols.
• On the MSCI index, Thungela moved up from a BB rating in 2022 to a BBB rating in 2023.
• The ISS rated Thungela for the first time in 2023, and while coal mining companies are classified as high-risk and automatically penalised for their contribution to climate change, Thungela was ranked as an industry leader alongside several local coal producers and outperforming global peers.
• On the S&P Global Corporate Sustainability Assessment (CSA), which annually evaluates the sustainability practices of over 10,000 listed companies around the world, Thungela’s total score rose to 49 in 2023, placing it in the 97 th percentile of the companies in the sector.

As a leading future-orientated thermal coal business with the purpose of creating value together for a shared future, Thungela remains committed to continuous improvement in its disclosure efforts.

Thungela will be publishing its reporting suite for the year ended 31 December 2023, which includes the Integrated Annual Report, Annual Financial Statements, ESG and Climate Change Reports. These will be available on our website on Wednesday, 24 April 2024.

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