Wrap Text
Kumba enters into embedded solar energy offtake agreement with Envusa Energy
Kumba Iron Ore Limited
A member of the Anglo American plc group
(Incorporated in the Republic of South Africa)
(Registration number 2005/015852/06)
Share code: KIO
ISIN: ZAE000085346
("Kumba" or "the Company")
Kumba enters into embedded solar energy offtake agreement with Envusa Energy
Shareholders are advised that Kumba, through its subsidiary, Sishen Iron Ore Company Proprietary Limited ("SIOC"), has
entered into a 20-year Energy Offtake Agreement ("EOA") with Envusa Energy Proprietary Limited ("Envusa Energy") in
relation to the embedded on-site supply of electricity to the Sishen mine (Sishen) from the Sishen Solar Photovoltaic ("PV")
plant (the "Project").
Envusa Energy is a joint venture between EDF Power Solutions and Kumba's controlling shareholder, Anglo American plc
(Anglo American), established to develop a regional renewable energy ecosystem in Southern Africa. Envusa Energy
operates as an energy trader, procuring renewable power through power purchase agreements and supplying this energy
to contracted off takers.
In terms of the JSE Limited ("JSE") Listings Requirements, Envusa Energy is an associate of Anglo American and, therefore, a
related party to Kumba. The JSE has confirmed that the EOA constitutes an ordinary course of business transaction in terms
of paragraph 9.7 of the Listings Requirements.
The Sishen Solar PV facility has been optimally sized to deliver electricity cost savings for SIOC and, together with Kolomela's
11MW in wheeled renewable energy, is expected to increase Kumba's renewable energy penetration to approximately 45%,
and displace around 35% of Sishen's current Scope 2 emissions at steady state. The Project is planned to deliver first green
electrons in the fourth quarter of 2027 and will comprise an installed capacity of 72.5MWp (DC), supplying 63MW (AC) to
Sishen under the EOA.
Kumba's Chief Executive Officer, Mpumi Zikalala said: "The Sishen solar PV project is designed to deliver reliable, cost-
competitive renewable energy and, together with Kolomela, which has been receiving 11MW in wheeled renewable energy
since March 2026, strengthens the pathway to a lower-carbon future. The Project advances our ambition to reduce
greenhouse gas emissions by 28% by 2030 and supports Anglo American's 2030 climate target."
Details of the EOA:
In terms of paragraph 9.8(a) of the Listings Requirements, the following details of the EOA are disclosed:
• The EOA will endure for an initial 20-year term, with an option for SIOC to purchase the Project from Envusa Energy for a
nominal amount, post the initial 20-year term, or longer term, if extensions apply;
• The electricity charges payable by Kumba are in line with the market practice of Independent Power Producers,
determined by considering, inter alia, the capital cost of investment, operating costs and funding and an expected equity
return for the Project over the term of the EOA;
• The EOA currently represents a ~30% saving on the current Eskom tariff (with the savings over the term of the EOA
dependent on future Eskom tariff levels, amongst other factors);
• SIOC guarantees the expected equity return and funding repayments beyond the current Sishen life of mine (LOM), in the
event that the LOM is not extended beyond its current reserve life;
• The energy generated by the Project is to be purchased by SIOC on a take-or-pay basis, subject to specified exceptions;
• Envusa Energy provides a minimum level of performance guarantee, with defined financial consequences if this level is
not achieved;
• Envusa Energy is required to maintain a minimum BBBEE rating that is equal to or better than a level 4 BBBEE rating;
• The EOA contains clauses addressing termination for default and remedies for force majeure and network events; and
• The EOA remains subject to the fulfilment or waiver, as applicable, of suspensive conditions.
Corporate governance processes:
The independent non-executive directors of Kumba, who are members of an already constituted independent sub-
committee of the board of directors (the "Board") ("Independent Committee"), have considered the terms and overall
impact of the EOA and are of the opinion that the EOA is in the ordinary course of business of the Company and has been
concluded on an arm's length basis.
In terms of paragraph 9.8(b) of the Listings Requirements the following corporate governance processes were followed by
the Board:
• Engaged the JSE in accordance with paragraph 8.2 of the Listings Requirements;
• Engaged independent technical, legal and financial advisors to provide assurance to the Independent Committee on the
power distribution modelling and energy allocation and benchmarking the competitiveness of the project to supply
electricity under the EOA;
• Appointed independent external legal counsel to negotiate the EOA and to undertake a review of the EOA to confirm to
the Independent Committee that the terms were negotiated at arm's length; and
• Convened an Independent Committee meeting at which committee members were provided with all relevant information
and were afforded an opportunity to have their queries addressed and/or to request further information.
This announcement contains forward-looking statements which are based on the Company's current beliefs and
expectations about future events. The operational and financial information contained in this announcement has not been
reviewed and reported on by the Company's external auditors and is the responsibility of the Board.
Johannesburg
23 July 2026
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Company Secretary
Fazila Patel
fazila.patel@angloamerican.com
Tel: +27 12 683 7060
Mobile: +27 83 297 2293
Investors Media
Penny Himlok Melangini Pillay
penny.himlok@angloamerican.com melanini.pillay@angloamerican.com
Mobile: +27 82 781 1888 Mobile: +27 76 959 2019
Notes to editors:
Kumba Iron Ore Limited, a member of the Anglo American plc group, is a leading value-adding supplier of high quality iron
ore to the global steel industry. Kumba produces iron ore in South Africa at Sishen and Kolomela mines in the Northern Cape
Province. Kumba exports iron ore to customers around the globe including in China, Japan, South Korea and a number of
countries in Europe and in the Middle East and North Africa region.
www.angloamericankumba.com
Anglo American is a leading global mining company focused on the responsible production of copper, premium iron ore and
crop nutrients – future-enabling products that are essential for decarbonising the global economy, improving living
standards, and food security. Our portfolio of world-class operations and outstanding resource endowments offers value-
accretive growth potential across all three businesses, positioning us to deliver into structurally attractive major demand
growth trends.
Our integrated approach to sustainability and innovation drives our decision-making across the value chain, from how we
discover new resources to how we mine, process, move and market our products to our customers – safely, efficiently and
responsibly. Our Sustainable Mining Plan commits us to a series of stretching goals over different time horizons to ensure
we contribute to a healthy environment, create thriving communities and build trust as a corporate leader. We work
together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for
our shareholders, for the benefit of the communities and countries in which we operate, and for society as a whole. Anglo
American is re-imagining mining to improve people's lives.
Anglo American is currently implementing a number of major structural changes to unlock the inherent value in its
portfolio and thereby accelerate delivery of its strategic priorities of Operational excellence, Portfolio simplification, and
Growth. The sale of our steelmaking coal and nickel businesses, the separation of our iconic diamond business (De Beers)
continue to progress and once completed, will focus Anglo American on its world-class resource asset base in copper,
premium iron ore and crop nutrients.
www.angloamerican.com
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Disclaimer: This document has been prepared by Anglo American plc ("Anglo American"). By reviewing this document you
agree to be bound by the following conditions. The release, presentation, publication or distribution of this document, in
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This document is for information purposes only and does not constitute, nor is to be construed as, an offer to sell or the
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Forward looking statements
This document includes forward-looking statements. All statements other than statements of historical fact included in this
document may be forward-looking statements, including, without limitation, those regarding Kumba's financial position,
business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations,
prospects and projects (including development plans and objectives relating to Kumba's products, production forecasts and
Ore Reserve and Mineral Resource positions), the anticipated benefits of mergers and acquisitions (including any
assessment or quantification of potential synergies) and sustainability performance related (including environmental, social
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identified by the use of words such as "believe", "expect", "intend", "aim", "project", "anticipate", "estimate", "plan", "may",
"should", "will", "target" and words of similar meaning. By their nature, such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of
Kumba's or industry results to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements.
Such forward-looking statements are based on numerous assumptions regarding Kumba's present and future business
strategies and the environment in which Kumba will operate in the future. Important factors that could cause Kumba's actual
results, performance or achievements to differ materially from those in the forward-looking statements include, among
others, levels of actual production during any period, levels of global demand and product prices, unanticipated downturns
in business relationships with customers or their purchases from Kumba, mineral resource exploration and project
development capabilities and delivery, recovery rates and other operational capabilities, safety, health or environmental
incidents, the ability to identify, consummate and integrate pending or potential acquisitions, disposals, investments,
mergers, demergers, syndications, joint ventures or other transactions, the effects of global pandemics and outbreaks of
infectious diseases, the impact of attacks from third parties on our information systems, natural catastrophes or adverse
geological conditions, climate change and extreme weather events, the outcome of litigation or regulatory proceedings, the
availability of mining and processing equipment, the ability to obtain key inputs in a timely manner, the ability to produce
and transport products profitably, the availability of necessary infrastructure (including transportation) services, the
development, efficacy and adoption of new or competing technology, challenges in realising resource estimates or
discovering new economic mineralisation, the impact of foreign currency exchange rates on market prices and operating
costs, the availability of sufficient credit, liquidity and counterparty risks, the effects of inflation, terrorism, war, conflict,
political or civil unrest, uncertainty, tensions and disputes and economic and financial conditions around the world, evolving
societal and stakeholder requirements and expectations, shortages of skilled employees, unexpected difficulties relating to
acquisitions or divestitures, competitive pressures and the actions of competitors, activities by courts, regulators and
governmental authorities such as in relation to permitting or forcing closure of mines and ceasing of operations or
maintenance of Kumba's assets and changes in taxation or safety, health, environmental or other types of regulation in the
countries where Kumba operates, conflicts over land and resource ownership rights and such other risk factors identified in
Kumba's most recent Annual Report. Forward-looking statements should therefore be construed in light of such risk factors,
and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as
of the date of this document. Kumba expressly disclaims any obligation or undertaking (except as required by applicable
law, rules or regulations) to release publicly any updates or revisions to any forward-looking statement contained herein to
reflect any change in Kumba's expectations with regard thereto or any change in events, conditions or circumstances on
which any such statement is based.
Nothing in this document should be interpreted to mean that future earnings per share of Kumba will necessarily match or
exceed its historical published earnings per share. Certain statistical and other information included in this document is
sourced from third party sources (including, but not limited to, externally conducted studies and trials). As such it has not
been independently verified and presents the views of those third parties, but may not necessarily correspond to the views
held by Kumba and Kumba expressly disclaims any responsibility for, or liability in respect of, such information.
No Investment Advice
This document has been prepared without reference to your particular investment objectives, financial situation, taxation
position and particular needs. It is important that you view this document in its entirety. If you are in any doubt in relation
to these matters, you should consult your stockbroker, bank manager, solicitor, accountant, taxation adviser or other
independent financial adviser (where applicable, as authorised under the Financial Services and Markets Act 2000 in the
UK, or in South Africa, under the Financial Advisory and Intermediary Services Act 37 of 2002 or under any other applicable
legislation).
Alternative Performance Measures
Throughout this document a range of financial and non-financial measures are used to assess our performance, including a
number of financial measures that are not defined or specified under IFRS (International Financial Reporting Standards),
which are termed 'Alternative Performance Measures' (APMs). Management uses these measures to monitor the
Company's financial performance alongside IFRS measures to improve the comparability of information between reporting
periods and businesses. These APMs should be considered in addition to, and not as a substitute for, or as superior to,
measures of financial performance, financial position or cash flows reported in accordance with IFRS. APMs are not
uniformly defined by all companies, including those in the Company's industry. Accordingly, it may not be comparable with
similarly titled measures and disclosures by other companies.
©Kumba Iron Ore Limited 2026. ™ and ™ are trade marks of Kumba Iron Ore Limited.
©Anglo American Services (UK) Ltd 2026. ™ and ™ are trade marks of Anglo American Services (UK) Ltd.
Date: 23-07-2026 09:00:00
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