Anglo American extends SA five-year investment commitment to R100bn

ANGLO American expected to exceed its five-year investment target in South Africa in which it would spend some R100bn by 2022 – R15bn more than previously forecast.

The additional expenditure was part of the roll-out of new technologies such as its green hydrogen haul fleet and bulk ore sorting, both of which had environmental benefits. This was contained in the group’s presentation to the South African Investment Conference in Johannesburg.

It is the third such conference since 2018 when South African president, Cyril Ramaphosa, announced plans to attract some R1.2 trillion in new investment to the country.

Nolitha Fakude, chairperson of Anglo American South Africa, said the group would meet two-thirds of its previous R85bn investment commitment by the end of this year despite delays brought about by Covid-19.

Committed investments included some R30bn that would be pumped into converting and expanding Venetia diamond mine in Limpopo province into an underground mine. This was the largest single investment commitment in the South African mining industry in over 20 years, she said.

About R2bn would be spent stimulating existing and new sources of demand for South Africa’s platinum group metals and a further R7bn would be allocated to a new pit at Kolomela, a mine operated by Kumba Iron Ore securing production at a rate of 13 million tons a year until 2032.