Namibian Marine Phosphate (NMP) last week met the Parliamentary Standing Committees on Natural Resources and that of Economics and Public Administration in efforts to strengthen their case for mining phosphate off the Namibian seabed.

NMP is adamant that mining phosphate holds tremendous benefits for Namibia, without threatening the lucrative fishing industry.

NMP is developing the project that it hopes will establish the country as a premier rock phosphate producer in the global market, contributing to domestic economic growth and supporting ongoing crop production through the provision of phosphorus for fertiliser.

“Since 2012, we have not been able to secure an environmental clearance for the mining licence. The clearance that we were awarded in 2016 was immediately suspended due to objections from some players in the fishing industry,” stated NMP’s chief operations officer, Mike Woodborne.

Since then, NMP has been embroiled in a court case which ended in their favour in 2020. The court case involved concerns about the validity of NMP’s mining licence. In October last year, NMP filed another environmental clearance application, which the company said is still being considered by the environmental commissioner.

NMP’s Sandpiper marine phosphate project on the continental shelf off Namibia is contained within tenements of some 7000 km². The Sandpiper deposit occurs as unconsolidated sea floor sediment containing a mixture of old seashells, mud and phosphate sand. It now lies within the depth capability of available dredging technology.

Woodborne observed that NMP is aware of industry objections, but remains unyielding in their assessment that the project holds immense potential to develop other sectors of the domestic economy.

“According to the study carried out, the phosphate-based industry, if developed to its fullest capacity, could create employment for up to 50 000 people in a broad range of industries, including the agriculture, mining, manufacturing and transport industries,” he continued.

A feasibility study indicates that the Sandpiper Project is expected to be technically and economically feasible, and has the potential to be a long-life project capable of delivering attractive investment returns for the project’s shareholders.

Meanwhile, chairperson of the natural resources’ committee Tjekero Tweya expressed concern about investors coming to Namibia, and doing the opposite of what they proclaimed. He said this often occurs while the owners of the resources “swim in a pool of poverty”. Tweya, therefore, advised NMP to be patient in acquiring the environmental clearance certificate, and to allow the relevant authority to carry out its mandate in properly assessing all factors related to the clearance.

Africa is experiencing a remarkable shift towards renewable energy sources, signifying a significant leap towards sustainable development. With the potential to address energy access challenges, reduce carbon emissions, and drive economic growth, renewables have become a driving force on the African continent.

Renewable Energy in Africa: A Transformative Trend

Africa’s journey towards a sustainable energy future has gained substantial momentum in recent years. The following key points exemplify the growing role of renewables:

Solar Power: The abundant sunlight across the continent makes solar energy an ideal source of power. Projects, such as the Noor Ouarzazate Solar Complex in Morocco and the Benban Solar Park in Egypt, have showcased the immense potential of solar power in Africa.

Wind Energy: Wind power is rapidly gaining traction in countries like South Africa, Kenya, and Ethiopia. These nations have invested in wind farms that are not only bolstering their energy supply but also reducing their dependence on fossil fuels.

Hydropower: Africa is home to numerous rivers and water bodies, making hydropower a viable energy source. Projects like the Grand Ethiopian Renaissance Dam (GERD) and the Inga Dam in the Democratic Republic of Congo are poised to be transformative for the continent’s power generation.

Off-Grid Solutions: Mini-grids and off-grid solutions are bringing electricity to remote and underserved regions. Innovative approaches, such as pay-as-you-go solar systems and microgrids, are improving energy access and catalysing economic growth.

Investment and Partnerships: International organisations, governments, and private investors are collaborating to fund renewable energy projects across Africa. These partnerships are vital in driving the expansion of renewable energy infrastructure.

Benefits of Renewable Energy Adoption

The growing role of renewables in Africa brings numerous advantages, including:

Energy Access: Renewable energy is extending energy access to underserved communities, fostering economic development, and improving living standards.

Job Creation: The renewable energy sector is creating employment opportunities across the value chain, from manufacturing to installation and maintenance.

Sustainability: Reducing the carbon footprint and mitigating the effects of climate change are central benefits of transitioning to renewable energy sources.

Energy Security: Diversifying the energy mix by incorporating renewables enhances energy security and reduces dependence on imported fossil fuels.

Economic Growth: Investments in renewable energy are spurring economic growth by attracting foreign investment, promoting local manufacturing, and boosting export opportunities.

Energy Independence: African nations are taking steps towards energy independence by harnessing their abundant renewable resources, reducing reliance on energy imports, and enhancing energy sovereignty.

A Call for Continued Investment and Innovation

While Africa has made impressive strides in the adoption of renewable energy, there is still much work to be done. To fully realize the potential of renewables, continued investment, innovation, and supportive policies are crucial. Governments, private sector stakeholders, and international organisations must collaborate to overcome challenges and seize the opportunities presented by renewable energy.

The future of Africa’s energy landscape is green, and it holds the promise of a brighter, more sustainable future for all its inhabitants. A significant focus of the upcoming Africa Energy Indaba, taking place from the 5 – 7 March 2024, in Cape Town, South Africa will be to facilitate further investment into renewable energy growth in Africa. “We invite all interest parties to take up the opportunity to find out about the latest renewable energy development opportunities, meet the key stakeholders and project developers and gain an understanding of the business opportunity.  All this will be available at the Africa Energy Indaba, commented, Liz Hart, Managing Director of the Africa Energy Indaba.

Junior miners are playing an increasingly important role in producing the critical minerals needed for decarbonisation and the Just Energy Transition (JET), according to Dr. Eduard Vorster, Managing Director, Resources at leading consulting engineering and infrastructure advisory firm Zutari.

“These are really the pioneers that find new resources in, for instance, the critical raw mineral types in demand at present and that will be sought after in future,” says Dr. Vorster. These include Rare Earth Elements (REEs), a group of 17 elements. Neodymium, dysprosium, and praseodymium are particularly important for the production of powerful magnets used in wind turbines and electric vehicle motors.

While junior miners often have “exciting deposits”, they need deep skills in terms of business development. “We like to work at either end of the spectrum as the one represents the miners and assets of the future, while the other is established and serving our current needs.”

However, junior miners often face financial constraints. “They try to do things on a little bit of a shoestring,” says Dr. Vorster. “Where we as a company can assist them is to derive at a valuable proposition far quicker.” For example, this can include securing funding for the next stage, or utilising Zutari’s deep prior experience to arrive at cost-effective concepts much quicker.

“That is a slightly different outlook to someone building with their own money. We are able to perceive the wider value chain on behalf of junior miners, as we understand the licensing issues and the urgency for a ‘fit-for-purpose’ solution to kickstart a viable project.”

Dr. Vorster says that, apart from REEs, the JET is driving demand for minerals such as lithium, cobalt, graphite, nickel, copper, and silver. “What is interesting is that the notion of what minerals and elements are deemed important to serve our new energy outlook is changing.” This is as the world transitions to electric vehicles and adopts largescale battery energy storage systems.

However, Dr. Vorster says junior miners have a realistic view of the ‘hype’ accompanying the perceived demand for these increasingly important minerals and elements. “One needs to be very careful not to get swept away and think that it will be easy to make business cases. Despite the fact that lithium is such a valuable commodity at present, the market is not yet fully developed to its full potential. We still need sound business decision-making.”

Zutari can assist junior miners to achieve their environmental, social, and governance (ESG) goals. “The whole discussion around ESG is interesting. We feel very passionate about ESG and the impact it allows us to have,” says Dr. Vorster. Junior miners often do not have ESG top of mind as they contend with rising input costs and electricity constraints. It means that, while critical, ESG compliance tends to be onerous for junior miners.

“What is clear is that the mining industry as a whole is acknowledging it has to go down the so-called ‘green’ route. Many feel it is a moral as well as a business imperative for a sustainable future,” says Dr. Vorster. He points out that Zutari can equip junior miners with critical skillsets they might not have in-house.

“It goes without saying that if you have the best people and apply the best skillsets available in the market, you will be successful. Successful mining companies in Africa understand that the way to get the best bang for your buck is to have the right people onboard from the outset. Do not invest simply because you feel you must. Make sure that you capitalise on change progress. These are valuable lessons for any business.”

Dr. Vorster represented Zutari at the Junior Mining Indaba held recently in Johannesburg. He was accompanied by Dr. Heinrich Jantzen, a seasoned Zutari mining consultant and former mining executive, and Daniel Chelopo, a qualified Project Management Professional (PMP), with over a decade’s experience in mineral processing and bulk materials handling projects.

Commenting on the successful outcome of the Junior Mining Indaba, Chelopo says it was gratifying to have CEOs from major mining companies using the opportunity to impart knowledge to Junior Miners. “It is testament to how the mining industry has embraced sustainability and the JET and what impact this is having on South Africa as a whole.”

Chelopo stressed that there has recently been an increasing emphasis on researching potential and problems associated with the transition to greener energy sources and decarbonisation activities. This huge initiative strives to address the critical problem of climate change and its negative environmental repercussions.

Exploring these potential difficulties is critical as countries worldwide attempt to minimise their dependence on fossil fuels and embrace sustainable alternatives. “The Junior Mining Ndaba gave us an excellent opportunity to find out about the voluntary carbon credit market, which enables businesses to offset their carbon footprint by investing in initiatives that decrease greenhouse gas emissions. Attending the event as a project manager allowed one to comprehend the complexities of the carbon credit market, discover potential for carbon offset projects in the mining industry, and hear about the latest market trends and regulations,” highlights Chelopo.

The event allowed project managers to obtain a thorough awareness of the legal and regulatory framework controlling geological exploration and mining activities. This information keeps them up to date current on developments, allows them to comprehend the ramifications of their own initiatives, and maintain compliance with the rules of the Geoscience Act. The Junior Mining Indaba also afforded attendees the opportunity to learn about the most recent breakthroughs in exploration methods, mining technology, and value chain optimisation.

The Carbon Border Adjustment Mechanism (CBAM), a policy that will require producers of goods imported into the European Union (EU) to pay an emissions levy, should fast-track decarbonisation efforts, but also result in prices rising across several sectors sharply – according to the latest Wood Mackenzie Horizons report.

The new report titled Playing by new rules: how the CBAM will change the world, focuses on three value chains, oil, steel and hydrogen and looks at how the mechanism could change global trade flows. The report also details the impact it will have on consumers in the EU.

The report states that the that the impact of the EU CBAM will be felt globally as countries with existing carbon pricing and/or less carbon intensive commodities will gain a competitive advantage over countries that don’t.

“The CBAM will drive the world further down the path towards decarbonisation, with the effects being felt globally. Initial reactions could result in a significant reshuffling of trade flows, which could stretch over a decade,” says Elena Belletti, Global Head of Carbon Research at Wood Mackenzie. “Businesses and governments can adopt strategies to mitigate the effects of higher carbon costs and capitalise on new opportunities.”

India and China set to see EU steel export costs soar

The steel industry will be one of the first affected by the EU policy and the impact will be felt by all major producers. Within the EU, iron and steel production accounts for 6% of total emissions and the introduction of the CBAM will exert greater pressure on both domestic and foreign producers to invest in higher-cost, low-emission technologies, such as carbon capture, utilisation and storage, hydrogen and increased energy efficiency.

The report estimates that costs of the CBAM for finished steel imports into the EU from some key exporters could exceed US$275/tonne by 2034. Chinese and Indian producers could see the cost of their steel imports rise by 49% and 56% respectively by 2034 due to the impact of the CBAM.  In 2022, the average import price of steel products covered by the CBAM was around US$1,450/tonne.

“Steel producers with lower production carbon intensities or high domestic carbon price in the US and the UK could be less impacted the CBAM, but Asian producers could divert imports into other markets or for domestic use,” says Nuomin Han, Head of Carbon Markets at Wood Mackenzie. “However, end-users in the EU will pay more for steel in future and this could result in a political backlash.”

Opportunities abound in EU’s low-carbon hydrogen market

Large-scale hydrogen production is still in the early stages, but the report states that the CBAM will put an additional incentive in place to stimulate imports of low-carbon hydrogen and its derivatives.

Ammonia and fertilisers are central to the low-carbon hydrogen strategy and Wood Mackenzie expects traditional ammonia to be the largest consumer of low–carbon hydrogen until the mid–2030s, when power will become the top offtake sector.

“As carbon costs rise, grey hydrogen will eventually become more expensive in terms of levelised cost of hydrogen (LCOH) than the two key low–carbon technologies: green hydrogen, produced by electrolysing water, and blue hydrogen, produced from natural gas with carbon capture,” says Iván Pérez, Research Analyst on Emission sat Wood Mackenzie.  “Producers both inside and outside the EU will be forced to look for lower emission routes for producing hydrogen.”

Levelised cost of Hydrogen

US and Middle East oil producers set to benefit

The report states that while the oils value chain is not one of the initial sectors covered by the CBAM, oil production and refining is expected to be included from 2028 and the market fully covered by 2036.

This means that exporting countries with large reserves of less carbon intensive oil and gas such as the US and countries in the Middle East will be the major beneficiaries of the introduction of the CBAM. However, the report predicts that trade flows from producers in West-African countries and Russia will be diverted to more economically attractive markets.

As with steel, consumers of oil and gas products in the EU will see prices rise as the CBAM takes hold. The report estimates that full CBAM implementation could boost crude and refined product prices by up to US$5/barrel, adding 30-euro cents per litre to costs at the pump.

Balancing environmental sustainability with economic and social demands is always challenging, and South Africa is grappling with an ever more complex regulatory framework as it tries to walk this line.

The country has a well established legal foundation for assessing and managing environmental impacts, and this is regularly updated, extended and modified. Among recent changes to environmental regulations are those aimed at allowing renewable energy developments to be fast tracked, as well as a focus on the implementation of biodiversity offsets.

SRK Consulting partner and principal consultant Chris Dalgliesh highlighted that environmental impact assessment (EIA) processes are differently affected particularly if the proposed project is in a renewable energy development zone (REDZ) or a strategic transmission corridor – areas earmarked for the development of infrastructure of this nature.

Streamlining renewables

“If the project falls into either of these areas, there are different requirements for the EIA, meant to assist in streamlining the process for quicker implementation,” said Dalgliesh. “The processes also differ depending on whether you are dealing with the energy generation component of the project, or the grid component – which often have to be assessed as separate EIA applications.”

Therefore, when considering projects for which environmental authorisation is sought through an EIA process, developers are confronted with multiple permutations of application processes, choosing those which best suit their development plans. The competent authority may also have their own interpretation of what the EIA applications must include, he explained.

Changing regulations

“Even five years ago, the EIA options were comparatively straightforward,” concurred Sharon Jones, partner and principal environmental scientist at SRK Consulting. “Our more complex projects would require a scoping and EIA – or a ‘full’ EIA – while other projects required only the basic assessment process.”

These two processes still apply, but environmental assessment practitioners (EAPs) now need to consider a host of other variables as the rules are continually updated. An indicator of the pace of change, Jones noted, is the high number of relevant new regulations, protocols and guidelines associated with EIA processes published in the Government Gazette each month.

Less flexibility

A recent instance has been a court decision which will oblige renewable energy developers to conduct a single EIA process for a generating facility and its associated grid infrastructure – rather than splitting that into two applications for greater flexibility. According to Kelly Armstrong, environmental consultant at SRK Consulting, this illustrates the importance of EAPs keeping track and abreast of what legal precedents are being set, as well as the regulatory updates and competent authorities’ interpretation of the rapidly changing legislative landscape.

Jones added that, in their efforts to streamline new power generation capacity, renewable energy developers have tried to cluster their EIA applications to facilitate the authorisation process. For example, they propose clusters of renewable energy developments, each with a separate EIA process but a single combined stakeholder engagement process at the time – leading to EAPs attempting to manage up to 20 EIA processes concurrently. These activities can, however, quickly become disjointed or misaligned as requirements change.

Timeframes

“Consultants and EAPs must navigate this legal terrain very carefully, to keep abreast of what is required,” she said. “The implications on project timelines can be significant, as many aspects of EIAs are time-consuming; a wind farm application relies on a bird and bat monitoring period of two years prior to the EIA being completed.”

The cumulative momentum of all the changes to environmental regulations, warned Dalgliesh, had led to a situation where it is now more difficult to achieve EIA compliance in South Africa than it isto comply with international standards.

“Our processes have become much more complex, and we need to consider substantial allied legislation,” he said. “While our legal evolution is well-intended, there is a danger that EAPs have to spend so much time learning the new EIA rules that they are being distracted from actually doing EIAs in an efficient manner.

Biodiversity offsets

Jones pointed out that another recent change relates to the country’s first National Biodiversity Offset Guidelines – which will also have to be considered in EIA applications. After many years in the pipeline, these guidelines were published in June for implementation, and apply to both terrestrial and freshwater realms.

Armstrong said the guidelines will be applicable across sectors and, now that they are gazetted, will provide much clearer direction on how biodiversity offsets should be integrated into EIA processes.

“In addition to their existing compliance requirements, clients will be looking for guidance on what these biodiversity offsets mean for current or future development applications,” she said. “They will be relevant, for instance, if any project is located in areas where there are species of conservation concern and/or protected areas.”

She noted that SRK’s experienced consultants understand the implications of ever changing legislation for clients, and provide valuable assistance in managing the complexity of the process.

Over the years, there has been a rise of businesses prioritising sustainability to align with ethical imperatives and consumer demands. Transparent reporting on these sustainability efforts not only enhances accountability but also fosters trust with stakeholders.

With a heritage spanning over 50 years, Tsebo Solutions Group – a leading pan-African integrated workplace management solutions provider, is committed to its purpose, values, and sustainability framework. Over the years, the company has endured by being a ‘powerful force for good’ and pioneering Environmental, Social, and Governance (ESG) initiatives that create long-term shared value.

As a true advocate for sustainable business practices and an ESG acceleration partner for its clients, Tsebo shared valuable insights and performance statistics from its sustainability journey and inaugural report at a recent media roundtable event.

A Journey to Sustainability Excellence

Tsebo’s sustainability is driven by ESG 2030 targets, alignment with the UN Global Compact’s ten principles and sustainable development goals, and six core pillars identified in a materiality review. These pillars, rooted in Tsebo’s values and purpose, guide sustainable practices company-wide:

1. Managing environmental impact
2. Positive people experience
3. Engaging customer experience
4. Commitment to sustainable partnerships
5. Corporate Social Responsibility
6. Good corporate governance and ethics

Top Five 2022 Achievements based on each of the Six Material Pillars:

Managing environmental impact

• ISO 14001 certified, affirming continuous commitment to addressing environmental impact.
• R200 million energy usage reduction achieved for Tsebo Clients.
• 87.1 tonnes of landfill waste was reduced.
• 95% of seafood is sourced from the SASSI green list.
• 74% of tea and coffee are sourced from Rainforest Alliance-certified partners.

Positive people experience

• 82% global benchmark score received for people practices as a certified Top Employer.
• Retained Level 1 B-BBEE certification.
• 60% female employees representation, as well as 42.3% of female employees occupying roles in senior management positions.
• 80% Employee Engagement Index, compared with Africa’s 60% overall benchmark.
• Approximately 40 000 training and development interventions (Learning and Development spend = 4.2% of the annual leviable amount)

Engaging customer experience

• 82% average Client Satisfaction Score.
• 1 500 client surveys conducted.
• 85% service experience score.
• 95% average client retention rate.
• Contract tenure of 13 years on average.

Commitment to sustainable partnerships

• US$10.32 million local-to-local community spend, presenting over 35% of ATS’ (remote site business that operates outside of South Africa) total procurement.
• Over 200 certified local-to-local community suppliers.
• R4.2 million was invested between 17 South African enterprise and supplier development initiatives.
• 30% of Tsebo Group’s total procurement spend was utilised to uplift EMEs and QSEs.
• 20 SMME partnerships were created across South Africa, facilitating 16 small business developments.

Corporate social responsibility

• US$3.9 million total domestic spend, constituting 100% of ATS’s total spend, with 0% direct imports.
• Over 8 500 local-to-local youth are employed.
• 73 CSR projects across eight African countries.
• R5.8 million CSR spend in South Africa.
• Over R1.1 million CSR spend used to uplift and protect women and children in South Africa.

Good corporate governance and ethics

• A zero-tolerance policy for theft, bribery, and corruption.
• 24/7 tip-off hotline (maintained independently by Deloitte).
• 40% Black female executive directorship at board level in South Africa.
• Over 17 800 employees trained in health and safety.
• Over 11 650 training communications on theft, bribery, corruption and gift, and entertainment disclosures.

Insights

Environmental Insights

Addressing environmental impact through renewable energy and energy reduction initiatives is a collective responsibility that should be seen as an opportunity for a greener future. According to Melusi Maposa, Group Chief Sales and Marketing Director at Tsebo, the need for flexible policies and partnerships, particularly public-private partnerships (PPPs), should be embraced to bridge service delivery gaps in energy transition efforts.

“A noteworthy consideration in the realm of energy: While transitioning to renewable energy sources is undeniably significant, energy reduction initiatives must assume primacy as the initial step for both households and businesses. This emphasis on energy reduction is particularly relevant in South Africa’s economic climate, where affordability remains a pivotal concern,” says Maposa.

Energy initiatives offer more than just reduced consumption. They foster community development, cut carbon emissions, provide financial incentives through subsidies, and ease municipal burdens. Tsebo’s recent R16-million, 1.4 MW solar PV system with Sun City underscores these sustainability gains.

“The future of our planet and generations to come depends on individuals and businesses challenging everything we do and how we do it, including seemingly trivial efforts, to minimise environmental impact, creating a ripple effect for a sustainable future.”

Social Insights

For Tsebo, addressing unemployment, skills shortages, and inequality is paramount. Companies should go beyond the minimum 1% Learning and Development (L&D) spending requirement set by SARS says Elanie Kruger, Group Chief Human Resources Officer. “Rather than waiting for legal obligations, various sector codes should proactively establish higher skills spending targets, ensuring that businesses contribute more effectively to developing a skilled workforce,” she adds.

Ongoing learning and development are vital for lifelong career progression. This not only addresses skill gaps but also empowers employees, especially in promoting women to leadership roles through advanced management programmes.

“By investing in employees’ growth, companies can build a more equitable, inclusive and competent workforce,” says Kruger. “Moreover, targeted programs, including internships, apprenticeships, and mentorship opportunities, should be designed to cater specifically to youth and youth living with disabilities.”

“Furthermore, bridging the digital divide demands innovative approaches and technology-driven human development. This strategy has been instrumental in achieving positive results at Tsebo, a progressive development initiative acknowledged by the Top Employer’s Institute in our 2023 certification,” she says.

Kruger also notes that to create a lasting impact and shared value, larger businesses should support local-to-local suppliers and community growth by providing financial assistance, streamlining processes, offering training and mentorship, and creating programs for young entrepreneurs.

Governance Insights

The proliferation of unskilled, uncertified and transient companies in Africa, along with pre-existing corruption and socioeconomic issues, poses a significant compliance challenge. According to Tim Walters, Tsebo Group CEO, in the “business of people”, this translates to a lack of expertise and resources to adhere to labour laws, minimum wage regulations, safety standards, and ethical practices.

“It jeopardises the health and safety of employees and clients, undermines industry credibility, and calls for African governments and regulatory bodies to prioritise stricter enforcement of industry standards and licensing requirements. Heightened awareness and rigorous due diligence in partner selection are crucial, as the true cost impacts the most vulnerable people,” says Walters.

Furthermore, ethical and eco-friendly supply chain management is crucial in today’s business landscape. It calls for collaboration among businesses, governments, and global and local entities. By focusing on local-to-local procurement initiatives in the agricultural sector, for example, farm-to-fork and local sourcing, we can notably boost production levels. This strategy enhances productivity and promotes shared value across Africa.

Future Outlook: A Greener Horizon

Tsebo’s holistic approach to sustainability is not only evident through its business services but also through its dedication to initiatives that prioritise the environment and communities it serves, according to Tsebo Group CEOs, Tim Walters and Chris Jardine.

“We know that challenges will persist, and it’s uplifting to know that our broad range of solutions assists in addressing many of these challenges – from green building design and efficient energy management to innovative enterprise and supplier development initiatives. Through meaningful partnerships with our clients and local communities, we are on course to accelerate our ESG initiatives. In doing so, we are in the privileged position of being able to align and propel the shared goals of our clients and partners,” Walters and Jardine concluded.