Coal Miner Seriti Resources Acquires Majority Stake In Windlab Africa

South Africa’s leading coal miner, Seriti Resources has said that it has agreed to acquire a majority stake in wind and solar-powered assets of Windlab Africa- a wind energy site developer, through its subsidiary Seriti Green. Seriti is looking at lowering its carbon footprint and ensuring long-term sustainability as a diversified energy producer. Windlab Africa consists of 100% of Windlab South Africa and 75% of Windlab East Africa.

Transaction Details

The transaction, with a total purchase price of $55 million, will see Seriti Resources acquire a 51 per cent controlling interest in Windlab Africa. RMB(14.5%, Standard Bank 14.5%, Peter Venn 15% and Ntiso Investment Holdings 5% collectively takes up the remaining stake.

Seriti Resources said that Windlab is currently overseeing 3.5 GW of renewable energy projects at different stages of development in South Africa and east Africa.

Timely Acquisition

Mike Teke, Seriti Resources CEO, commented on the takeover, “The acquisition is a timely and strategic addition to our existing and valuable portfolio of coal assets.”

Seriti Resources says that it’s conscious of the impact that fossil fuels have on the environment and is committed to playing an active role in helping manage the just transition to a low-carbon economy while balancing South Africa’s energy needs.

It says that here is a growing need for stable power supply around the world, alongside a global shift to decarbonise and reduce reliance on fossil fuels. The need for an energy supply that meets current and future needs, along with the obligation to move towards a managed transition to renewable energy sources, means this acquisition is especially timely.

“This acquisition is a significant landmark on Seriti’s journey to becoming a diversified energy business and supports our ESG objectives and commitment to a just energy transition,” said Mike Teke.

Seriti held that it uses 750 GWh of electricity in the process of mining the coal that is used to fuel power stations. In line with the commitments made in the MOU signed in October 2021 with Eskom and Exxaro, Seriti will start using renewable wind and solar energy in its own facilities through the signing of PPA’s in 2023.

“We need to be moving towards a lower carbon future through investing capital from coal into green energy. It is not only the right thing to do, but it makes business and societal sense,” said the CEO.

For the acquisition, Seriti has collaborated with Standard Bank, RMB, Ntiso Investment Holdings and Peter Venn.

“With African ownership and local capital, the business will now be able to accelerate the development of its significant pipeline to assist in alleviating the electricity shortages on the African continent,” said Windlab CEO, John Martin.

“We believe that the complementary skills of the management teams will provide a timely acceleration to deliver a diversified and more reliable energy supply for South Africa,” said Mark Buncombe, Head Mining and Metals, on the Seriti move.

Head of Infrastructure Equity Finance and Investments at RMB, Kwabena Malgas, added, “An exciting opportunity to partner with Seriti, a key client and long-term partner of RMB. Seriti has always been at the forefront of solutioning for South Africa’s energy crisis.”