Glencore makes R2. 8bn payments to South Africa amid energy transition plans
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.
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
Daily Maverick
4 hours ago
- Daily Maverick
After the Bell: Want a decision from the SA government? Don't hold your breath
There are plenty of cases where the government just takes a long time to make decisions. Even decisions that need to be made by one person can take forever. In some cases, the process is just too technical, with too many steps. And while it can be frustrating, it is also really expensive for our economy. One of the great and terrible certainties about South African life is that you know any kind of government process is just going to take forever. And while it can be frustrating and taxing, in the end it is also hugely expensive for our economy. On Tuesday, 17 June 2025, BusinessLIVE reported on the CEO of Afrimat, who had told shareholders in the annual report that a delay by the Competition Tribunal over its deal with Lafarge SA might have cost the company about R185-million. That's because while the tribunal was considering the case, the equipment, including kilns, fell into disrepair. By the time the tribunal allowed the deal, it was exactly a year since it was first announced. And remember, all the tribunal had to do was consider the recommendations of the Competition Commission — it wasn't as if they were starting the entire case from scratch. Something similar has happened with the Vodacom-Maziv deal, where the two want to work together to roll out fibre. This is something that should greatly benefit our economy. That case took three years before the Competition Tribunal eventually ruled that the merger could not go ahead. And even then, the parties had to wait for months before the final reasons were actually published. Considering how the fibre market has changed in the past three years, this might well have a material impact on whether the deal still has the same value as it did when it was announced. It's easy to pick on the Competition Tribunal. And we should. But there are plenty of other cases where the government just takes a long time to make decisions. In some cases, the process is just too technical, with too many steps. There are also, arguably, too many different forums. For example, Vodacom now has to appeal against the Competition Tribunal ruling in the Competition Appeal Court. It is even possible that if it fails there, it could go to the Constitutional Court. That would mean the whole thing will probably take more than five years. But it is not just our judicial and legal processes that take a long time. Even decisions that need to be made by one person can take forever. Jacob Zuma once took nearly two years just to appoint a new head of the Special Investigating Unit. That was clearly political; he didn't want anyone in the job for reasons that became pretty obvious. But President Cyril Ramaphosa sometimes isn't much better. The head of the National Prosecuting Authority (NPA), Shamila Batohi, has asked him to suspend the head of prosecutions in Joburg, Andrew Chauke. He is accused of a litany of sins, including sabotaging prosecutions during the State Capture era. Her request was made nearly two years ago. And Ramaphosa has still not made a decision. Considering that he has claimed to want to support our independent institutions, and the NPA, what could his motive possibly be? Two weeks ago, Police Minister Senzo Mchunu withdrew an advert for a new head of the Hawks, after Godfrey Lebeya retired. The process to find a new head will now start again, meaning they will be without a boss for four months. At least. And I'll bet you the cost of a double ticket to see the Springboks at Ellis Park that it will take longer than that. There are many other examples. Former Department of Trade, Industry and Competition Minister Ebrahim Patel was accused by the current head of the National Lotteries Commission, Professor Barney Pityana, of delaying the appointment of the agents who formally assign money to groups that are supposed to benefit from it. The current Health Minister, Dr Aaron Motsoaledi, appeared to take forever to publish regulations around the digital nomad visa when he was at Home Affairs. In the end the new minister, Leon Schreiber, had to do it. And was able to claim something for the DA in the process. I think sometimes when there is a long delay we have to ask who is really responsible. In the case of the Competition Tribunal, it is not just that they make decisions businesspeople don't like. It's that the delay is caused because they don't have enough members. As columnist Michael Avery has pointed out, it appears to be seriously understaffed. By the way, they're not the only ones. Mbekezeli Benjamin from Judges Matter once pointed out that the Electoral Court had been without a full complement of staff for a full five years. That's astonishing, no matter how you look at it. And it's only because of the politicians; they are the ones who are ultimately in charge. When there are delays like this, I think we're entitled to ask why. And this is the risk to the politicians. When Ramaphosa can't make up his mind about Andrew Chauke for two years, it looks like he's defending him, even if he's not. When tribunals and courts are left without their full complement of judges and commissioners, it must make them weaker. But sometimes it can be something else. DM
Daily Maverick
4 hours ago
- Daily Maverick
Transnet secures three-year wage agreement with union, promoting stability and growth for workers
After lengthy talks Transnet settled wage negotiations with the United National Transport Union last week. The settlement is for three years and will see workers paid 6% increases annually, including on housing and medical allowances. Transnet has confirmed that it has concluded a wage agreement with the United National Transport Union (Untu) that will be valid for the next three years. Under this agreement workers will receive an annual increase of 6% for the next three years. Untu secretary-general Cobus van Vuuren said the salary increase agreement reflected the power of collective bargaining in improving the conditions of the working class. 'The three-year agreement also ensures much-needed labour stability during a critical period as Transnet works to rebuild its operations, restore service reliability, and regain stakeholder confidence. As the majority union representing the voices of more than 26,000 employees at Transnet, Untu confirms that this newly signed agreement supersedes the previous agreement signed between Transnet and the minority union Satawu,' he said. Earlier in the negotiations the two unions were unable to present Transnet with a joint salary demand. Van Vuuren said the new salary increase agreement between Untu and Transnet placed a strong emphasis on job security by including a firm non-mandatory retrenchment clause, which was one of the key demands tabled by Untu throughout the negotiations process. The agreement provides for a 6% annual increase and a 6% increase for housing allowances and medical subsidies. 'Untu acknowledges the role of the Commission for Conciliation, Mediation and Arbitration as the highest dispute resolution body, which intervened to avert industrial action that would have derailed Transnet's recovery and turnaround plan and collapsed an already fragile South African economy,' Van Vuuren said. Transnet said the finalisation of the three-year wage agreement provided labour stability. This, Transnet said, 'will enable the company to focus on its immediate strategic priorities of improving operational and financial performance, while positioning the organisation for future growth, thereby ensuring job security and economic growth'. DM
The South African
5 hours ago
- The South African
Skytrax crowns the Best Low-Cost Airline in Africa
Skytrax has crowned the best of the best airlines in various categories in their annual World Airline Awards, held on 17 June 2025. Amongst these categories was Best Low-Cost Airline in Africa, and one South African budget airline has walked off with the title. Beating out both LIFT Airline, which was awarded the same title last year, and Fastjet in the top three, FlySafair was named Best Low-Cost Airline in Africa for 2025. Known as 'the Oscars of the aviation industry', the World Airline Awards began in 1999, and are completely determined through a customer satisfaction survey conducted by Skytrax. Skytrax once again crowned Qatar Airways as the World's Best Airline, for a record-breaking ninth time. Qatar Airways was also given the titles of World's Best Business Class and Best Airline in the Middle East. The top ten best airlines according to Skytrax were: Qatar Airways Singapore Airlines Cathay Pacific Airways Emirates ANA All Nippon Airways Turkish Airlines Korean Air Air France Japan Airlines Hainan Airlines Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
