Thungela has signed a Memorandum of Agreement (MOA) with University of Pretoria’s (UP) Educational Psychology Department. As part of this collaboration, the Department of Educational Psychology at the university will deploy master's students to various schools to offer essential psychosocial support to both educators and learners in the foundation and intermediate phases.
Thungela launched the education initiative in 2024, a five-year program that aims to improve the quality of education for Grade R to Grade Four learners in 45, no-fee schools in Nkangala and Gert Sibande districts, and aims to improve school readiness, literacy and numeracy outcomes for learners.
Mpumi Sithole, Executive head of corporate affairs at Thungela said, “We recognise that educational performance is not only shaped by access to resources but also through the psychological and emotional well-being of both learners and educators. Working with the University of Pretoria, we are equipping schools with the professional support needed to respond to the complex realities facing learners and educators.
“This MoA is an important step in Thungela’s journey to strengthen the impact of the Thungela Education Initiative, and we are proud to contribute to a model that will provide the much-needed psychosocial support to the learners and teachers, while empowering the master’s students at the same time.”
The mutually beneficial partnership will offer the master’s students hands-on experience as they conduct learner assessments and identifying the necessary remedial actions and interventions, under the supervision of the district educational psychologists. This will help reduce the workload of the district's educational psychologists, while the master’s student gain valuable practical work experience to help them complete the practical components of their academic training.
Through this agreement the University of Pretoria is supporting the implementation of the Department of Basic Education’s screening, identification, assessment and support (SIAS) policy. Professor Mampane from the University of Pretoria, said, “This community engagement partnership with Thungela exemplifies a strategic alliance that amplifies our capacity to make a meaningful difference beyond academic boundaries. By bridging the gap between theory and practice, this collaboration not only empowers our students with invaluable real-world experience but also addresses critical community needs, particularly in Mpumalanga.”
“It further fosters a ripple effect of positive change, enhancing emotional resilience, academic achievement, and life skills among young learners. This model underscores the transformative potential of synergy among academia, government, and the private sector. Together, we are laying a robust foundation for sustainable development and social upliftment, reinforcing South Africa’s path toward a more equitable and prosperous future,” said Professor Mampane.
Thungela will fund and manage the program, overseeing its implementation with a dedicated project structure. To uphold governance and accountability, a management committee has been set-up. The committee will ensure consistent engagement with stakeholders across various levels of the Mpumalanga Department of Education, emphasizing ethical principles throughout the partnership.
Thungela’s purpose, which is to responsibly create value together for a shared future is the cornerstone of this partnership, as we continue investing in building resilient communities through meaningful and impactful interventions.
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Thungela Resources Limited (“Thungela” or “the Group”) today, announced its interim results for the six months ended 30 June 2025. The results reflect the strength of our balance sheet, disciplined capital allocation and our ability to execute on our strategic priorities, despite softer coal prices and a challenging global environment.
Commenting on the results, Thungela CEO, July Ndlovu, said: “Safety is our first value. We are pleased to report that we have operated for two and a half years without a loss of life. We remain unconditional about ensuring that our people return home safely every day.”
“The global operating environment was characterised by increasing geopolitical uncertainties and tariff escalations, disrupting global supply chains and resulting in weaker coal demand. These results demonstrate our ability to control the controllables.”
Operational performance
In South Africa, export saleable production increased by 300kt year-on-year to 6.4Mt, driven by productivity improvements at Zibulo and Mafube, while Khwezela was affected by abnormally high rainfall. FOB cost per export tonne excluding royalties was R1,258, in line with guidance. At Ensham, we recorded 1.6Mt of saleable production and stockpiled a further 280kt run of mine coal, which did not report into saleable production in the first half. FOB cost per export tonne excluding royalties of R1,694 per tonne is above the higher end of the guidance range as a result of the lower production denominator, which we expect to normalise in the second half of the year.
Advancing on our strategic objectives
The Group’s strategic projects remain imperative to the business, with Elders beginning to produce export saleable production as we continue to ramp up. The Zibulo North Shaft project is making good progress and is scheduled to be completed in 2026, within budget. These two life extension projects are key to the long-term sustainability of the business in South Africa, as the Goedehoop mine approaches its end of life in 2025. At Isibonelo, the coal supply agreement is reaching its end of contract term, and the mine will thus come to the end of its life in 2025. We are evaluating opportunities to close these operations in a sustainable and responsible manner. We continue to invest in the Lephalale Coal Bed Methane project as we seek to demonstrate the value in use of the gas.
Financial performance
Our financial results reflect the continued pressure on coal prices, with the average realised export prices in South Africa and Australia declining by 11% and 10% respectively. The softer coal prices, combined with a weaker US dollar to South African rand exchange rate, have led to a decrease in Group revenue in the first half of the year. Group revenue decreased by 12% year-on-year to R14.8 billion, realising an adjusted EBITDA* of R691 million and net profit of R248 million. Earnings per share were 193 cents (H1 2024: 952 cents) and headline earnings per share were 192 cents (H1 2024: 952 cents).
The Group generated adjusted operating free cash flow was R484 million for the first half of the year, which was positively impacted by a working capital unwind of R690 million and R453 million from managing foreign currency risk. Net cash at 30 June 2025 was R6.3 billion after capital expenditure of R1.2 billion.
Shareholder returns
Our robust balance sheet enables us to continue to fund our investments through the cycle and continue to prioritise shareholder returns. The Board has approved total returns to shareholders of an interim ordinary cash dividend of R2 per share and a share buyback of up to R140 million. The total returns to shareholders are aligned to shareholder returns in the first half of 2024, despite a more challenging environment.
The Sisonke Employee Empowerment Scheme and the Nkulo Community Partnership Trust will also receive a further R31 million collectively.
The board believes the buffer of R5 billion is appropriate given the current uncertainty globally, including commodity price and foreign exchange rate volatility.
Operational guidance
In South Africa, our full year guidance for export saleable production of 12.8Mt to 13.6Mt remains appropriate as production is seasonally weighted towards the second half of the year. Guidance for FOB cost per export tonne excluding royalties* of R1,210 to R1,290 also remains appropriate.
We expect production at Ensham to improve in the second half of the year, however, given the geological conditions experienced, production is likely to be closer to the lower end of the guidance range of 3.7Mt to 4.1Mt. Consequently, FOB cost per export tonne excluding royalties* will be at the upper end of the full-year guidance range of R1,470 to R1,580.
In conclusion
“Today represents a significant milestone in my journey as Thungela’s CEO, as this is the last set of financial results that I will deliver. I am deeply grateful to the Thungela board, group executive committee, employees, shareholders and stakeholders for your steadfast support.”
“As we welcome Moses Madondo as the CEO designate, I am confident that he will be afforded the same support that you have shown me over the years. I am proud that together, we have built a sustainable business with long-life assets across multiple geographies,” said Ndlovu.
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Thungela’s Zibulo Colliery has refurbished eight high-mast lights in Lebohang, Leandra. The decision to undertake this project stemmed from discussions with the Govan Mbeki Municipality, during which the issue of non-operational high-mast lights emerged as a significant safety challenge within the communities. Residents highlighted prolonged darkness in specific areas due to vandalism and equipment malfunctions as a major security concern.
Zibulo Colliery heeded the call and upgraded the infrastructure, implementing energy-efficient LED lights and enhancing hoisting systems for improved functionality. These enhancements not only facilitate safer and easier maintenance but also include security measures to safeguard the newly installed lights. This project forms part of Zibulo Colliery’s Social and Labour Plan (SLP).
Matome Moremi, general manager at Zibulo Colliery said: “This initiative reflects our commitment to community safety and improving essential services in communities surrounding our operations. Safety is our number one value as a business, and this extends beyond our mining operations into communities where we operate. Public areas’ lighting infrastructure is a basic but vital part of a community, and we are pleased to support the residents of Lebohang in improving their safety through restoring the high-mast lights.”
The Govan Mbeki Local Municipality welcomed the projects and its impact on service delivery. “This is a meaningful upgrade for the people of Lebohang,” said Councillor Nhlakanipo Zuma, Executive Mayor of the Govan Mbeki Local Municipality. “We always welcome this kind of investment, which strengthens infrastructure and improves and safeguards the lives of our residents.”
This SLP project not only restored lighting but also provided short-term employment opportunities for seven host community members, hired by local electrical contractor, promoting inclusion and contributing to the development of local skills. This aligns to Thungela’s broader focus to improve the quality of community services where we operate.
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Mafube Coal, our joint venture with Exxaro hosted a graduation ceremony in honour of 39 beneficiaries of a skills development programme that forms part of a livelihood restoration programme for resettled communities in Middelburg, Mpumalanga. With a significant investment of R5.2 million, the program's goal is to support community members in rebuilding their livelihoods.
Sherperd Nkadimeng, general manager at Mafube Coal said: “This programme is designed to help community members gain practical skills as a foundation for earning a sustainable livelihood. As part of the initiative, community members received business development skills and level 4 accredited qualification in freight logistics, backed by exposure to real business environments; setting them up for both employment and self-employment.”
“The logistics programme gave me more than just a certificate; it gave me confidence and professional direction,” said Portia Mbuyane. “Being exposed to real companies during the training helped me see where I can fit in, in the job market.”
The programme also provided beneficiaries with skills for setting up small businesses, equipping them with tools to ensure they succeed. They were introduced to budgeting, business planning, financial literacy and income-generation strategies. A few of the beneficiaries have since started their own businesses and are now able to provide for their families. These include:
“Industries like freight forwarding are growing, and with the right skills, people from mining communities can take advantage of opportunities beyond the mine,” Sherperd Nkadimeng said. “This kind of training is about opening doors and giving people the tools to grow on their own terms. This is how we deliver on our purpose to responsibly create value together for shared future, for our communities.”
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Thuthukani, Thungela’s Enterprise and Supplier Development (ESD) programme, hosted a graduation ceremony for sixty-one (61) local entrepreneurs from communities surrounding its operations. This marks the third cohort of entrepreneurs to successfully complete the programme since its launch in 2022.
Thuthukani is designed to build resilient businesses by offering tailored business skills training, technical enablement, and one-on-one mentorship to entrepreneurs from host communities. The programme is grounded in a detailed gap analysis and enables support in areas such as finance management, marketing, sales, project strategy, leadership, ISO certification, and personal development. The programme is delivered in partnership with business development service provider Raizcorp.
Of the 61 entrepreneurs graduating this year, 29 are supplier development beneficiaries – Small Micro and Medium Enterprises (SMMEs) that currently provide goods or services to Thungela, while 32 are enterprise development beneficiaries, comprising SMMEs that are not vendors but have potential for future integration into the mining value chain or in other industries. Notably, 50 of the 61 graduates also achieved technical enablement accreditations including ISO 9001, ISO14001 and ISO 45001 certifications, specialised geological modelling, deep cleaning and hygiene, while other businesses became members of the Federated Hospitality Association of Southern Africa and The Institute of Waste Management South Africa, boosting their compliance and competitiveness for procurement opportunities.
“Thuthukani is more than a business development initiative. It is a catalyst for local economic resilience. Each graduate represents a point of impact that causes a ripple effect, creating jobs and opportunities that uplift families and communities. We are proud to support the growth of these entrepreneurs and help them realise their potential - as they contribute to the growth of local economies, says Mpumi Sithole, executive head, corporate affairs at Thungela.”
The graduation highlights Thungela’s commitment to inclusive socio-economic development and transforming small businesses in in host communities. As the programme grows, its impact continues to spread, with entrepreneurs not only formalising their businesses, but also entering new markets, gaining critical certifications, and becoming active contributors to the regional economy.
Among the graduates is a growing group of women-led businesses gaining real traction in their industries. Julliet Mahlangu, owner of Mpangela Industrial Holdings and a beneficiary of the programme says, “Before Thuthukani, I lacked the systems and structure to manage and scale my business. The mentorship and technical training helped me implement better financial controls, and I now feel more confident approaching new clients and bidding for contracts.”
“Watching this third cohort grow in confidence, capability, and market reach is a clear sign of the value this partnership delivers. Thuthukani’s focus on both enterprise and supplier development ensures that more entrepreneurs in Mpumalanga are equipped for long-term success, says Jeanne Renou, Strategic Relations & Projects Manager at Raizcorp.
Beneficiary, Giji John Motau, owner of Gemad Pty Ltd, says, “my journey with Thuthukani has been transformative. I’ve gained a clearer understanding of what it takes to build a sustainable business”.
Thuthukani reflects Thungela’s ongoing commitment to economic transformation and community empowerment.
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Thungela’s Goedehoop Colliery has completed the construction of a new cafeteria facility at the Mhluzi Industrial Park in the Steve Tshwete Local Municipality (STLM). The new cafeteria will serve businesses operating in the industrial park, strengthening local economies and contributing to the broader revitalisation of the area.
Goedehoop Colliery invested R4,8 million in the facility as part of its Social and Labour Plan. This investment is a direct response to the priorities outlined in the Steve Tshwete Local Municipality’s Integrated Development Plan (IDP), which identifies infrastructure development in local economic zones as key to stimulating entrepreneurship and job creation.
Tman Mphokane, general manager at Goedehoop Colliery, said: “Our focus is on building platforms that enable local economic development, and this investment supports small businesses in host communities by creating a space where they can thrive and grow - contributing to the long-term resilience of the community.”
In delivering the project, Thungela prioritised the use of suppliers from host communities, advancing its approach to shared value through local procurement. These include Meedu Trading who were appointed as the principal contractor, Syncthor Consulting, who provided professional services, and Blaq Square Interior Design, a beneficiary of Thungela’s enterprise and supplier development programme Thuthukani, who led the interior design scope. Eight small, medium-sized enterprises (SMMES) from the host community were subcontracted, and seven residents were temporarily employed during the construction phase of the cafeteria.
Cllr, Mhlonishwa Masilela, Executive mayor of STLM, said: “This is exactly the kind of partnership that is needed. Infrastructure like this creates a tangible platform for small businesses to succeed, and it signals confidence in our local economy. We appreciate Thungela’s commitment to aligning with our development priorities and investing in projects that serve our community long after construction is completed.”
The cafeteria now stands as a vital amenity within the industrial park - positioned to support day-to-day operations, serve tenants, and stimulate business activity in the zone.
“We are deliberate about aligning our efforts with local development priorities and creating opportunities that have a lasting impact. By partnering with local suppliers and investing in shared growth, we’re building stronger, more inclusive local economies. We believe that real progress happens when investments are made with purpose and partnership,” added Tman.
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Thungela, meaning 'to ignite' in isiZulu, is a global pure-play producer and exporter of high-quality, cost competitive thermal coal, with operations in South Africa and Australia. We focus on high-quality coal reserves and marketable production, positioning ourselves as a key player in the global energy market by delivering coal through world-class ports, powering nations.
Our ESG approach supports our purpose to responsibly create value together for a shared future. A robust ESG framework underpins our licence to operate. Establishing and committing to a comprehensive ESG framework with associated targets is one of Thungela’s five strategic focus areas.
