JOHANNESBURG – The half-year revenue contribution from the energy business of Exxaro Resources was 17% higher than in the first half of last year, with energy generation from the Cennergi wind assets driven up by an improvement in wind conditions from the prior year.
“Notwithstanding the many obstacles we have continued to face during the first half of 2023, including the ongoing logistical challenges which have been compounded by the steep decline in thermal coal prices, Exxaro has once again displayed its resilience and agility in navigating through the challenging business environment in which we operate,” Exxaro CEO DrThe large South Africa-based group, with interests in the coal, energy and ferrous markets released its reviewed interim results for the...
The total R1 561-million investment for the 68 MW Lephalale solar photovoltaic project at the Grootegeluk mine, in Limpopo, which reached financial close on June 29, will be funded through limited recourse project finance debt by South African lenders at a gearing ratio of 75%. Construction will commence during this half and commercial operation is expected in 2025.
Exxaro reported the domestic coal market as remaining stable, despite a depressed export pricing environment. The decline in export prices, however, impacted on the economics of exporting through alternative ports. Demand for low calorific value coal remained resilient as domestic end-users continued to offtake power station coal from various Exxaro mines.