South African coal giant Seriti takes control at giga-scale green power group

One of South Africa’s largest coal miners – Seriti Resources – will take a controlling stake in renewables developer Windlab Africa in a deal worth $55m.

Seriti, a major supplier of coal to South Africa’s state utility Eskom, agreed to buy 51% of Windlab Africa and its 3.5GW of wind and solar projects at various stages of development in its home market and East Africa.

The group – which bills itself as “a broad-based, 91% black-owned and controlled coal mining company” – last year set up its Seriti Green unit to begin adding renewable assets.

Under the terms of the agreement, Seriti will be joined by minority shareholders including Standard Bank and RMB, and managing director Peter Venn, in owning Windlab Africa.

The Windlab projects will contribute to the 750GWh of Seriti’s annual consumption to power its mining operations, which in turn deliver coal to Eskom’s thermal stations.

Seriti CEO Mike Teke said: “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.”

Teke, added, however that “our commitment to the responsible and reliable production of coal for both domestic consumption and exports remains unwavering” – contrasting positions that reflect the sensitivity around coal in South Africa, where the fossil fuel remains a major source of employment and a political hot potato for successive governments managing the nation's energy transition.

Power is at the top of the political agenda in South Africa, which has this year suffered worsening blackouts as Eskom’s ageing fleet struggles to meet demand.

President Cyril Ramaphosa in July announced wide ranging plans to bring new capacity on to the system, including a pledge to double the nation’s next renewable energy procurement round to 5.2GW – the largest held yet.