Exxaro, a South African mining company, is expected to reach financial close at the end of March for the construction of a 68 MW solar power plant in Lephalale, at a cost of between R1.52 billion and R1.56 billion.
Exxaro is partnering with independent energy company Enertrag to develop wind and solar energy projects for mines in Mpumalanga. The collaboration has a potential pipeline of 370 MW to 975 MW.
Exxaro reported a 41% higher revenue of R46.4 billion, which helped power the record 78% increase in the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) to R19,002 million in the 12 months to December 31.
Exxaro has been pursuing eight wind and solar acquisitive growth opportunities in the past 12 months. While six of these were rejected for not meeting Exxaro’s investment benchmarks, one fell through on strategic considerations and time constraints. One project is subject to due diligence.
“We are quite mindful of South Africa’s electricity grid constraints, which really remain a challenge in our energy strategy, and a challenge for others in the country as well,” said Exxaro CEO Dr Nombasa Tsengwa.
Source: ENGINEERING NEWS
Image Source: Exxaro