Glencore makes R2. 8bn payments to South Africa amid energy transition plans
Image: Reuters
Tawanda Karombo
Glencore on Thursday said it made tax, royalty and duty payments amounting to $157 million (around R2.8 billion) to South Africa in 2024 as it considers dialogue with government and other players as key for the country's energy transition.
In the year to December 2024, Glencore's total payments to governments in markets in which it operates topped $3.7bn, calculated 'in line' with the UK Transparency Requirements.
Over the same period, Glencore suffered about $611m worth of impairments in its South African operations, significantly contributing to the company's $1.6bn in losses to equity holder.
The $157m in payments to the South African government for 2024 were accounted for by $111.5m in income taxes, $45.3m in royalties.
An additional $1.2bn in 'taxes and duties relating to non-extractive activities plus other taxes' was also paid to SA during the same period, said the company.
By province, the multinational commodity trading and mining company's ferroalloys project in Limpopo paid $69.7m to the government while its energy coal operation in Mpumalanga contributed $41.1m.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
The company's manganese project in the Northern Cape made payments of $2.2m, in addition to the $43.8m paid by its ferroalloys operation to the North West provincial government.
Glencore expects to fulfil expenditure obligations related to its acquisition of Astron by September 2027 after initial payments totalling $185m as at September last year.
Despite taking impairments to its South African operations in the past year, Glencore has committed to its 2024-2026 Climate Action Transition Plan.
The company has 'determined that the relevance of a just and orderly transition for our industrial business is greatest in Colombia and South Africa' where it is focusing its efforts.
'The complexity of the energy transition in South Africa and the scale and potential significance of its impacts mean a multi-stakeholder approach is essential,' noted Glencore.
'We welcome ongoing efforts, and particularly support dialogue with all industry participants to help holistically identify and mitigate risks associated with operational changes.'
It said it deemed dialogue as key to enable a transparent, predictable, and stable approach to the energy transition in South Africa.
Moreover, Glencore said the predictability of the transition roadmap around planned closures of coal-powered power stations was necessary to enable a robust response that deploys actions in an effective manner supportive of communities.
Some of Glencore's coal operations in South Africa are located in a designated Renewable Energy Development Zone. It said the rehabilitation plans for the coal mines created opportunities 'to investigate renewable energy generation facilities for community use as long-term alternative land use' options.
'We support the efforts by the South African government to develop the policy framework that enables the just and orderly transition, and to commence the relevant planning,' it said.
Glencore is supportive of the planned implementation of virtual wheeling, which allows consumers to purchase renewable power from any producer across the country.
This allows companies with multiple smaller and low-voltage loads across various geographic areas in South Africa to participate in the energy market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
an hour ago
- The Citizen
How much money Dricus du Plessis won ‘by laying on the ground for 25 minutes'
The South African lost his title to Russian Khamzat Chimaev on Sunday in Chicago. He may have surrendered his Ultimate Fighting Championship (UFC) middleweight title this past weekend, but South Africa's Dricus du Plessis will receive a small silver lining in the way of a bloated bank account. Du Plessis had no answers for undefeated Russian Khamzat Chimaev's wrestling as he succumbed to a unanimous decision defeat at UFC 319 in Chicago on Sunday. Various reports online have estimated the South African will receive approximately $3 million (nearly R59 million) for essentially laying on the ground for almost 25 minutes. According to this amount includes a $1 million base purse reflecting his championship status, as well as between $1-1,5 million in Pay Per View and promotional bonuses — boosted by his star power and PPV points. Had he won the fight, this amount would have increased by a further $500,000. New champion Chimaev New champion Chimaev will earn an estimated $1.8 million — $750,000 for his base purse, $500,000 win bonus, roughly $750,000 to $1 million, driven by the event's hype and an extra $50,000 for his performance of the night bonus. Notably, Du Plessis previously banked $3.34 million at UFC 312 against Sean Strickland, per industry estimates, and $1.9 million at UFC 305 against Israel Adesanya. The combined earnings of Du Plessis and Chimaev, estimated at over $5 million, highlight the financial stakes of UFC title fights. Chimaev's amount reflects his rising star power, while Du Plessis' $3 million highlights the champion's PPV advantage. As the UFC prepares for a $7.7 billion Paramount deal in 2026, these figures spark curiosity about future fighter pay structures.
TimesLIVE
3 hours ago
- TimesLIVE
Tesla almost halves UK monthly lease fee as sales slump
British motorists can lease a Tesla electric vehicle for just over half of what they would have paid a year ago, The Times reported on Monday, citing industry sources. Tesla has been forced to offer discounts of up to 40% to car leasing companies to shift more units, the report said. The discounts are also due to the lack of storage space for Tesla vehicles in the UK, the report said. Reuters could not immediately confirm the report. Tesla did not immediately respond to a Reuters request for comment. Tesla's July sales in the UK fell about 60% to 987 units in July, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT). British new car registrations overall fell about 5% year-on-year in July, according to the SMMT. Battery electric vehicles are projected to account for 23.8% of new registrations in 2025, slightly up from SMMT's previous forecast of 23.5%.
IOL News
3 hours ago
- IOL News
Tribunal approves R23bn Barloworld acquisition by Newco, sets empowerment conditions
Former executives in Barloworld are acquiring the group through Entsha Proprietary Limited, while Saudi Zahid Group is the other shareholder in Newco. Image: Supplied Tawanda Karombo The Competition Tribunal has granted approval for the acquisition of industrial giant Barloworld by Newco, contingent upon fulfilling specific public interest and empowerment criteria aimed at benefiting historically-disadvantaged persons (HDPs) in South Africa. This heralds a significant shift not only for Barloworld but for its employees, as the merger promises structural changes rooted in empowerment and employee participation. Former executives in Barloworld are acquiring the group through Entsha Proprietary Limited, while Saudi Zahid Group is the other shareholder in Newco. With Newco intending to bump up its shareholding in the South African company, Barloworld will ultimately be delisted from the JSE. The merging parties, through their legal representative, told the Competition Tribunal hearing last week that the delisting of Barloworld was a major condition for the implementation of an employee share ownership program (ESOP). After delisting, a women-led consortium will also be empowered into the company. The Competition Tribunal on Friday announced that it has approved the proposed merger, stressing that conditions related to employment, empowerment and ESOP be met. 'For a period of two years after the merger's implementation, the merged entity may not retrench any of its employees in South Africa as a result of the merger. In addition, Barloworld employees' existing terms and conditions of employment will not be changed as a result of the merger,' said the Tribunal on Friday. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The merged entity also has to implement two phases of empowerment of historically disadvantaged persons that will give the groups, together with participating employees, a collective 13.5% shareholding in Barloworld. The second phase of the empowerment program involves the acquisition of a further collective 10% of Barloworld's issued shares by HDPs and participating employees. This will be on the basis of a 5% stake for employees through an ESOP and a 5% stake for a women-led consortium, to be selected and approved by the merged entity. 'Participating employees' are described as permanent employees of Barloworld or its subsidiaries and associate companies, the majority of whom are HDPs, who have been employed for at least six months. The second phase of the empowerment statutes has to be implemented within 24 months of Barloworld's delisting from the JSE and A2X securities exchanges, following the merger's implementation,' said the Competition Tribunal. 'Before implementing Phase 2, the merged entity must provide the Competition Commission with details of the proposed Phase 2 transactions in writing, at least 100 days before the 24-month period expires. These details must include the identity of the women-led HDP consortium/shareholders, including evidence that the prospective HDP shareholders are appropriately classified as HDPs.' Newco is offering R123.10 per share for Barloworld. The Tribunal also heard last week that Newco now had assurances of about 58% shareholders to raise its stake in the company and delist it. For the year ended September 2024, Barloworld revenue dropped 7% to R42 billion, with operating profit from core activities falling 12.6% to R3.8bn and Ebitda declining 7% to R5bn. Gross debt, however, eased 29% to R7.9bn.
