Johannesburg: Anglo American reported that Southern Africa is the only region in its business portfolio that has not yet transitioned to renewable energy. This is due to the company facing challenges in acquiring renewable energy in the same way as in other jurisdictions. However, Anglo American has a solution in progress through its joint venture with EDF Renewables, called Envusa, which aims to establish between 3 GW and 5 GW of renewable energy in Southern Africa.

The company is close to finalizing its first renewable energy projects in the Northern Cape, which involve three sites for solar and wind energy generation. Additionally, work on two large solar sites at the Sishen iron ore mine and the Mogalakwena platinum group metals mine is about to commence.

The transition to renewable energy not only reduces carbon emissions but also brings financial benefits to the business, particularly in South Africa. Anglo American's copper operation in Peru, Quellaveco, is already 100% powered by renewable energy, and its steelmaking coal business in Australia is set to convert its energy supply contracts to renewables by 2025, contributing to 60% of the company's portfolio operating on clean energy.

Despite macro headwinds affecting the first-half financial performance, including weaker product prices and input cost inflation, Anglo American remains committed to its long-term strategy of meeting the demand for future-enabling metals and minerals. The company's leaders have been encouraged to spend more time at the work face to better understand operations and improve safety.

Anglo American's objective is to grow the value of its business in response to increasing demand for decarbonization and the need for higher living standards in the global economy. The company is on track to meet its full-year production guidance, with an anticipated increase in second-half volumes.