The Mulilo Springbok Wind Power project is establishing a 55MW wind energy generation facility in the Springbok area in the Northern Cape. Picture: Supplied
By Tawanda Karombo
COPPER 360 has reached an agreement with Mulilo Reneweable Project Developments for the acquisition of a wind energy project in the Northern Cape for an initial cash consideration of R5 million.
Copper 360 said last month that the company was now transitioning towards steady-state production at its recently commissioned Rietberg mine in the Northern Cape as it eyes improved grades.
With copper emerging as a highly sought after commodity, Copper 360 already has “offtake agreements in place for all the ore” to be produced from Reitberg.
Further aiding its prospects, the company has now signed an agreement for the acquisition of 100% of Mulilo Springbok Wind Power, a project that was owned by Mulilo Renewable Project Developments.
The Mulilo Springbok Wind Power project is establishing a 55MW wind energy generation facility in the Springbok area in the Northern Cape.
“The project is at an advanced stage with regard to feasibility studies, technical documentation and engineering plans. An attractive feature of the project is its fully authorised environmental impact assessments and other relevant clearances and permits and land leases that are already in place,” said Copper 360.
“Studies indicate that the intended location of the generation facility is highly favourable in terms of wind profiles.”
Beyond the initial R5m purchase consideration, Copper 360 will also pay deferred cash payments of R1m per MW of installed capacity, payable as capacity is installed.
The acquisition is expected to be completed during the first week of next month, with no precedent conditions set.
Copper 360 has been looking for ways to achieve energy security as it grows its core copper producing business via its cluster mining model.
This acquisition will provide Copper 360 with a strong platform to generate renewable power to meet the increasing energy needs of its copper producing business in a cost-effective manner.
The company had also started investigating a wider renewable energy supply strategy of which wind energy generation will be an important component.
It said this includes an assessment of whether it will exercise its right to participate in the energy supply business or to outsource energy production.
“The acquisition of the MSWP wind energy project which will position us at the forefront of the green economy of which, as a copper producer we are an integral part,” said Shirley Hayes, CEO of Copper 360.
“The pursuit of energy security for Copper 360’s growing business in the form of reliable and responsible renewable power generation is a key strategic objective.”
Copper 360’s total remuneration to directors surged to R12.5m in the year to end February 2024 compared to R4.8m last year, with the then CEO pocketing R3m in consulting fees, salaries and performance related payments.
– BUSINESS REPORT