Press releases

Mafube Coal, Thungela’s 50% joint venture with Exxaro, has constructed a 3,4-kilometre tarred road, connecting Ward 7 of the Sikhululiwe Village, to the R104 road in the Steve Tshwete Local Municipality, Mpumalanga. The R54 million investment forms part of Mafube Coal’s commitment to improve infrastructure in communities surrounding the operation.

The road construction project fulfils a commitment Mafube Coal made to the community following public consultation and engagement with the Sikhululiwe Village community. The community highlighted poor road conditions that make it difficult to commute, particularly during the rainy season. This affected service delivery in the area.

Tamara Qwatekana, Mafube Coal’s general manager, said: “Reliable Road infrastructure is a foundation for development. It allows communities to access opportunities and services with dignity. This investment reflects our continued commitment to building infrastructure that makes a lasting difference in the communities where we operate.”

“This new tarred road will improve the quality of life for the residents of the 400 households in the village, allowing easy access to essential services - reducing travel time and damage to motorists’ vehicles. Commuters will no longer find themselves stuck in the mud after heavy rains, with pedestrians forced to wade through water, just to get to where they need to go.” said Tamara.

The project was implemented in collaboration with local suppliers who in turn created 15 job opportunities during construction, empowering local plant suppliers, a fuel supplier. Sakhisene, a local SMME constructed the perimeter fencing along the road to prevent animals from crossing the road.

Thulasizwe Thomo, MEC of Public Works, Roads and Transport in Mpumalanga, said: This initiative is a great example of what can be achieved when government and the private sector work together. The project has strengthened the infrastructure that supports this community, enabling them to travel without damaging their vehicles, allowing easy access to the R104 that links the village to both Middelburg and Belfast.

Iddy Mahlangu, a Councillor from Ward 7, said: “We are truly grateful for Mafube Coal’s investment in our community. This road has transformed our village and will make traveling in and out of this area safer and easier, especially for those who need to reach schools and healthcare facilities.”

The completion of this road brings renewed hope for residents and small businesses alike, presenting opportunities for growth and expanding their reach and access to new markets.

 
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Our CEO-designate made his first public engagement at the Joburg Indaba 2025 in the segment, ‘In conversation with Moses Madondo’. 

In his address, he highlighted the long-term fundamentals of coal, emphasising its role in energy resilience, industrial competitiveness and the long arc of human development. The truth is simple: the world needs energy, and coal remains a cornerstone in meeting that demand.

Thungela’s Elders project has delivered solar streetlights and portable inverters with solar panels to the communities of Vlakkuilen and Umcebo farms. The farms are in Ward 15 of the Govan Mbeki Local Municipality near Bethal, Mpumalanga. The solar streetlights and inverters are installed to improving visibility and boosting energy security for more than 450 residents across eighty-two (82) households in the community. This is an inaugural project that forms part of the Elder’s Social and Labour Plan (SLP), marking a new beginning in implementing initiatives to support community development in the area. 

After conducting a community needs analysis and engaging directly with residents, it became evident that issues such as poor lighting, frequent power outages, and the detrimental effects across households, were major concerns raised by the community. Addressing these challenges is crucial for enhancing the quality of life and safety within the neighbourhood. 

Tman Mphokane, general manager at Elders Project, said: “We considered a number of options to help power the community, and solar made the most sense. It is a solution that works well in areas where grid supply is not reliable. Most importantly, it allowed us to deliver a safe and consistent source of energy in places that had gone without it for far too long. Small-scale infrastructure like this has a visible and immediate impact. We remain committed to investing in projects that make a difference in communities that host our operations.” 

In a collaborative effort with our business partner, Mecapol, we initiated a pilot project by installing five units to evaluate the effectiveness of the solar lighting technology. Following the successful completion of this assessment, the project was seamlessly expanded to its full implementation. 

Councillor Nhlakanipho Zuma, executive mayor of the Govan Mbeki Local Municipality, said: “The success of this project is testament to what is possible when government and the private sector work in partnership to improve the lives of community members. This initiative has instilled a sense of security in our communities and contributed meaningfully to improving the dignity and quality of life of our residents.” 

Sibongile Motau, a community representative, said: “We are grateful to Thungela for this investment that has made our community safer. The solar lights have created visibility for people returning from work in the evenings, allowing them to walk with more confidence; children can get home safely from school, and elders are able to move around after sunset without fear. Residents now have a greater sense of security. The portable inverters have also greatly improved the livelihoods and dignity of the residents.” 

The R2 million project created ten temporary jobs during implementation, employing five community members from each village, and we are proud to report that all the units are fully operational. This project reflects Thungela’s commitment to enhancing access to essential services in the communities where we operate. 

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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.

• Safety: Operating a fatality-free business for two and a half years
• Production: Export saleable production in South Africa increased year-on-year to 6.4Mt and Ensham achieved production of 1.6Mt (on a 100% basis)
• Financial: Adjusted operating free cash flow* of R484 million for the period and net cash* of R6.3 billion at 30 June 2025, after capital expenditure of R1.2 billion
• Shareholder returns: Declaration of an ordinary interim cash dividend of R2 per share and a share buyback of up to R140 million
• Guidance: The Group remains on track to achieve full year guidance 

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:

• Tsepo Jele set up a rapidly growing ice supply business, while Audrey Mtsweni and Amanda Sikudo co-founded a laundromat, secured contracts with local clients, and have since expanded into cleaning services.
• Friddy Mahlangu used her beadwork skills to start a small business that is gaining traction beyond the village, and Sinenhlanhla Mngomezulu saw potential in her cultural heritage and began renting out traditional woven grass mats for ceremonies.
• Matshidiso Motsapi opened an internet café in the village to provide essential services such as printing, photocopying and internet access. Matshidiso said: “The training opened my eyes to possibilities I didn’t think were available to someone like me. For the first time, I have a plan to start my own business and the knowledge to make it real.”

“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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