Thungela has partnered with Black Power Africa, a black-owned community-based company in eMalahleni, to mine the Schoongezicht mineral residue deposit (MRD). This agreement will see the remaining coal reserves mined safely, formally and in compliance with the applicable legislation. The site will create jobs, support local businesses, and bring economic benefits to the surrounding community, while also making use of resources that would otherwise go to waste.
Mpumi Sithole, executive head of corporate affairs at Thungela said: “For us, this partnership advances the objectives of the Mineral and Petroleum Resources Development Act (MPRDA) by promoting equitable access to mineral resources and expanding opportunities for historically disadvantaged persons (HDPs). In addition, this partnership also ensures that mining contributes to social and economic development in surrounding communities, while also encouraging participation of junior and emerging miners. In a context where illegal mining remains a serious challenge in South Africa, for both mining operations and law enforcement, projects such as this one provide a proactive and structured response.”
Under the agreement, Black Power Africa operates independently and is responsible for all remining activities, ensuring that compliance with safety, environmental, regulatory and operational requirements are executed in a responsible manner. The scope of work includes the extraction of material from the MRD, crushing and screening of material, stockpiling, deployment and use of mining equipment, and the removal of material from the site.
The remining of the coal reserves began in February 2026 and is already contributing to economic activity in eMalahleni. Black Power Africa has employed 15 local individuals and a further eight through a security service provider. The company has also partnered with five community-based businesses. Ongoing operations are expected to further enhance economic growth in the area.
Jabulani Nkonyana, general manager at Black Power Africa said: “This is a significant milestone for us because it has unlocked meaningful local business participation in a formal and structured way. This agreement has presented us with an opportunity to contribute to responsible mining activity, grow capability, and demonstrate what is possible when communities are included more meaningfully in the mining value chain.”
Black Power Africa has also supported community initiatives in Schoongezicht, Ward 17. These include sponsoring the Easter soccer tournament, helping with a police-led debate competition for local secondary schools, renovating two classrooms at Witbank Primary School, and clearing out of rubble and waste in Overline.
“This partnership reflects Thungela’s commitment to enabling communities to actively participate in the mining value chain in a responsible way. By empowering Black Power Africa, we are supporting local enterprise development, creating jobs and contributing to long-term socio-economic development for future generations of eMalahleni. This underscores our purpose to responsibly create value together for a shared future,” said Sithole.
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Thungela’s Isibonelo Colliery has completed upgrades to the Emzinoni Multi-Purpose Centre and officially handed it over to Govan Mbeki Municipality, Mpumalanga. The R10.5 million investment strengthens the function of the centre as a hub for community activities, social services and public events. Upgrades to the main hall, office building, fencing, and paving have restored the centre, after damage left it in an unusable state. It is now fully operational and accessible to residents of Emzinoni and the wider Bethal community.
Thungela contributed a further R2.1 million towards phase one of the development of the waste transfer station in Embalenhle, which will cover an Environmental Impact Assessment, geophysical studies, designs and technical drawings required ahead of construction. The project was identified during the municipality’s Integrated Development Plan discussions and is a significant step toward advancing the station.
Edrich Welthagen, previous general manager at Isibonelo, said: “At the centre of these projects are the communities surrounding our operations. The Emzinoni Multi-Purpose Centre provides a shared space where people can gather, access services and participate in programmes that support social development. The work in eMbalenhle will help lay the groundwork for the construction of a waste management facility that will benefit households and create cleaner and healthier public spaces that will contribute to the wellbeing of residents.”
These initiatives form part of Thungela’s ongoing commitment to socio-economic development in communities surrounding our operations, strengthening local infrastructure and improving access to essential services.
Councillor Nhlakanipho Zuma, executive mayor of the Govan Mbeki Local Municipality, said: “The implementation of these projects underscores the positive outcomes of public-private collaboration that works. We are pleased to be part of a partnership that has played a key role in strengthening infrastructure, supporting service delivery and improving the lives of residents in communities within the municipality.”
The upgrade of the centre was delivered in partnership with the municipality, Izigi Consulting and Venn Milford, together with other local contractors. Guma Holdings completed the work, creating 64 temporary job opportunities and enabling subcontracting opportunities for 33 local businesses within the Emzinoni and Bethal communities.
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Mafube Coal, Thungela’s 50% joint venture with Exxaro, has handed over three solar-powered boreholes to the Kleinfontein farming community in the Steve Tshwete Local Municipality (STLM), Mpumalanga, benefiting approximately 147 residents. The R3 million water supply project includes the installation of borehole and solar power systems, pumps and water storage infrastructure that will deliver approximately 30,000 litres of water per day.
Tamara Qwatekana, general manager at Mafube Coal, said: “Access to clean, reliable and affordable water is a basic human right and essential to human dignity, health and food security. The project is delivered as part of our Social and Labour Plan commitments aimed at supporting community development in the areas surrounding our operation.”
“The infrastructure we have provided will supply residents of this farming community, largely made up of the elderly and unemployed, with a long term, safe and consistent water supply to support them and their livestock.”
The project was implemented by Pulsar Africa, which was responsible for the installation of borehole systems and supporting infrastructure. Construction activities created approximately six temporary employment opportunities for local community members during the project implementation phase.
The municipality commended Mafube’s investment, acknowledging the role of partnerships in supporting community development. Councillor Mhlonishwa Masilela, executive mayor of the STLM, said: “Collaboration between local government and industry plays a critical role in extending essential services and enhancing the living standards of the residents of STLM. Now that this community has received this infrastructure, we can direct our efforts to other areas without water supply.”
Mafube Coal aims to continue working with local stakeholders to identify opportunities where investments can make a meaningful difference for communities surrounding the operation, way into the future. “This is in line with our purpose, to responsibly create value together for a shared future,” said Qwatekana.
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Thungela’s Khwezela and Greenside Collieries joined forces in officially handing over a newly constructed health post to the Kwa-Mthunzi Vilakazi community, known as Clewer in the Emalahleni Local Municipality, in Mpumalanga. The R10.2 million facility forms part of the mines’ Social and Labour Plan (SLP) commitments and will improve the consistency and reliability of service to residents of this community and surrounding areas.
Sherperd Nkadimeng, Khwezela Colliery’s general manager, said: “Access to primary healthcare services remains essential for healthy and resilient communities. In Clewer, healthcare services were historically offered through a mobile clinic that operated only one day a week, providing care for the community and surrounding areas. This health post will significantly improve the consistency and reliability of service delivery, thereby strengthening access to healthcare.”
The facility boasts two consultation rooms, a room used to check patients’ vitals, a dispensary, a storeroom, a waiting area, a staff kitchen, a boardroom, ablution facilities for staff and the public, and a disposal yard. These spaces create a practical, fit-for-purpose facility that supports primary healthcare operations, from patient intake and assessments to dispensing.
Ms Sasekani Manzini, MEC for Health in the Mpumalanga Province, said: “Expanding preventative care and community health programmes through routine check-ups and health education will strengthen overall health outcomes in Kwa-Mthunzi Vilakazi Village. This partnership with Thungela will enable us to deliver health services to those who need them most, helping them to thrive, improving their human dignity.”
“Mobile clinic services are often interrupted by challenges such as vehicle breakdowns and adverse weather conditions, and they do not provide adequate shelter or waiting areas for patients. This fixed structure will address these limitations, ensuring a more stable, accessible, and patient-friendly healthcare service.”
Thungela enlisted the services of a local contractor to construct the facility, creating meaningful economic opportunities within the community. During the construction phase, the project generated thirty-four (34) temporary employment opportunities and enabled four (4) subcontracting opportunities for other local SMMEs, further supporting local economic development. A big thank you to our contributing partners for their generosity during the construction of the project; BB Transport, Vimbani Cleaning Services, Nkosiken Trading, Mphikeleli Civils and Serverst.
Councillor Anna Mtsweni of the Emalahleni Local Municipality also welcomes the investment, acknowledging its contribution to improving local health services delivery in the community through easy access for residents, particularly the elderly, children, and the vulnerable, who require continued care.
“Delivering a facility with long term tangible benefits to the community through our SLP commitments remains at the heart of our work as a responsible coal mining company, and we continue to drive initiatives in line with our purpose to responsibly create value together for shared future,” said Sherperd.
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Today, Thungela Resources Limited ("Thungela" or "Group”) announced results for the financial year ended 31 December 2025. The results demonstrate another year of strong operational performance, highlighting our ability to control the controllables in a challenging thermal coal market environment.
Salient features:
Commenting on the results, Moses Madondo, CEO of Thungela, said: “Safety is our number one value and remains at the core of everything we do. The ongoing conflict in the Middle East following the US-Israeli actions involving Iran has raised new levels of uncertainty and has caused concern, not only for the global economy but for peace, safety and security in the region. We continue to provide support to our colleagues in Dubai, prioritising their safety and well-being.
I am pleased to report that we have operated a fatality-free business for three consecutive years. Our focus remains, ensuring that all of our people return from work, safe and healthy every day. The Group’s total recordable case frequency rate increased to 2.83, from 1.93, primarily due to the challenging operating environment during the production footprint transition. As a result, we have implemented targeted interventions for increased risk sections and work crews through leading indicator heatmaps.
We exceeded export saleable production guidance in South Africa and achieved the upper-end of the guidance range in Australia. In South Africa, export saleable production of 13.9Mt was supported by strong performance at Mafube and the ramp-up at Annea Colliery. In Australia, we overcame the challenging geological conditions of the first half of the year to deliver export saleable production of 4.0Mt. Group revenue declined by 17% year-on-year to R29.6 billion and the
Group generated adjusted EBITDA of R1.2 billion and a net loss of R7.1 billion, impacted by the non-cash impairment loss of R8.8 billion recognised against assets, reflecting lower benchmark coal forecasts, the weakening US dollar and the strengthening of the South African rand.
Despite the market environment, the Group generated R2.4 billion in cash flow from operating activities, remained free cash flow positive with adjusted operating free cash flow of R396 million for the year, and ended the period with net cash of R5.1 billion.
The Annea Colliery and Zibulo North Shaft life-extension projects were completed on time and on budget. Together with the advancement of the Lephalale Coal Bed Methane (LCBM) project and the disposal of assets, aimed at optimising our portfolio and further strengthening the balance sheet, this underscores our ability to execute on our strategic priorities.
Operational performance
In 2025, we delivered robust operational performance supported by continued productivity gains and disciplined cost management. The Group recorded export saleable production of 17.8Mt, approximately 175kt higher than the output achieved in 2024. In South Africa, the free on board (FOB) cost per export tonne excluding royalties of R1,170 was below the guidance range of R1,210 to R1,290, highlighting the productivity improvements and cost efficiency initiatives, partially offsetting the impact of inflation and operational transition costs. At the Ensham Mine, the FOB cost per export tonne excluding royalties of R1,435 was also below the guidance range of R1,470 to R1,580, demonstrating the improved production and disciplined cost management.
Portfolio optimisation in South Africa
We have remained focused on delivering on our strategic priorities. The Annea Colliery and the Zibulo North Shaft life-extension projects were successfully delivered on time and on budget. Annea now replaces production from Goedehoop Colliery, with employees and key equipment successfully redeployed to ensure uninterrupted skills and operational capability. Zibulo North Shaft has been formally handed over to the operations team, with production ramp-up underway. The South African portfolio also continued its transition during the year. Goedehoop North and Isibonelo reached the end of their economic lives, with Isibonelo ceasing operations in December 2025, following the conclusion of its long-term domestic coal supply agreement, and subsequently transitioning to care and maintenance.
In line with our portfolio optimisation strategy, we have initiated a disposal programme for assets where remaining resources and infrastructure retain value in use but no longer provide optimal long‐term economic benefit to the Group. We previously announced the sale of Goedehoop North, and we have also concluded an agreement for the Kleinkopje mining right at the Khwezela Colliery. This showcases our ability to successfully execute on our strategic priorities, ensuring that we reshape our business and entrench resilience through the cycle.
The Group also progressed the LCBM project, with commissioning of the modular liquefied natural gas demonstration plant scheduled for completion in the first half of 2026.
Thermal coal market dynamics
The seaborne thermal coal market remained under pressure for much of 2025, with weaker demand in key coal-consuming countries and sustained production levels from Indonesia, Australia and South Africa. Market conditions improved moderately towards year-end, supported by restocking and stronger demand from the Indian sponge iron market.
Against this backdrop, Group revenue declined by 17% year-on-year to R29.6 billion. The Group recognised a non-cash impairment loss of R8.8 billion against assets, reflecting lower benchmark coal price forecasts, the weakening of the US dollar and the strengthening of the South African rand. The impairment losses are non-cash in nature and do not affect the Group’s liquidity or operational capacity. Despite the challenging market environment, Thungela remained cash generative.
The Group generated R2.4 billion in cash flow from operating activities, remained free cash flow positive with adjusted operating free cash flow of R396 million, and net cash at 31 December 2025 was R5.1 billion.
Rail performance in South Africa
Turning to logistics, Transnet Freight Rail rail performance improved to 56.8Mt, increasing from 51.9Mt in 2024. Thungela recognises the tangible improvements achieved to date through collaborative efforts between Transnet, the National Logistics Crisis Committee and the coal industry. A stronger coal logistics system benefits the broader industry, supporting both established producers and emerging participants while reinforcing South Africa’s position in global coal markets.
ESG and community investment
Environmental, social and governance (ESG) remains fundamental to our strategy and operations. As a responsible environmental steward, we are committed to reducing scope 1 and 2 emissions by 30% by 2030, against a 2021 baseline, and to reach net zero by 2050. We are pleased to report that, in 2025, we recorded zero level 3 to 5 environmental incidents, the first time since listing in 2021.
In line with its purpose to create shared value, the Sisonke Employee Empowerment Scheme and the Nkulo Community Partnership Trust will collectively receive R31m million in contributions, in addition to the interim contribution of R31 million. Socio-economic development investments also remain integral to its purpose, with the Thungela Education Initiative and the Thuthukani enterprise and supplier development programme demonstrating our dedication to creating long-lasting, sustainable value for our stakeholders and helping to rebuild communities that thrive beyond the life of our mines.
Capital allocation and shareholder returns
Our capital allocation framework remains central to our strategy, and we prioritise returns to shareholders through the cycle. In 2025, we returned R2.2 billion to shareholders through a combination of cash dividends and share buybacks. During the year, we completed two share buybacks for a total consideration of R469 million, or 4,858,231 shares, which represented 3.5% of issued share capital.
We continued to invest through the cycle, deploying R747 million in 2025 to complete the life‐extension projects. To date, we have invested a total of R4.2 billion in the Annea Colliery and Zibulo North Shaft, as well as R382 million on the LCBM project, to position the business for long‐term competitiveness and value creation. The Group is not currently reserving cash to complete future capital expenditure commitments, as key life-extension projects in South Africa are now substantially complete.
A key element of our capital allocation framework is the cash collateralisation of our environmental liabilities. In South Africa, we contributed R203 million to the green fund and, in Australia, we made an additional R275 million contribution to an investment vehicle with a similar purpose.
The Group’s dividend policy is to distribute a minimum of 30% of adjusted operating free cash flow. In the first half of the year, the Group generated adjusted operating free cash flow of R484 million, however, in the second half of the year, we incurred a negative adjusted operating free cash flow of R88 million. This required the board to exercise its discretion in determining an appropriate ordinary cash dividend under the current circumstances.
The board remains committed to prioritising shareholder returns where the balance sheet allows for it and where future prospects of the Group remain supportive of such a distribution. Accordingly, the board has approved a final dividend of R2 per share, or R281 million. Together with the interim dividend of R2 per share, or R281 million, and the R139 million share buyback completed following our interim results, this brings total shareholder returns relating to 2025 performance to R701 million, representing 177% of adjusted operating free cash flow.
These distributions result in the Group maintaining a cash buffer of approximately R4.7 billion and holds undrawn credit facilities of R3.2 billion.
Looking ahead
In 2026, Thungela’s priorities remain clear: safety, operational excellence and capital allocation. The Group remains committed to operating a fatality-free business and to further strengthen safety performance through targeted interventions and a reinforced safety culture. Further, we will continue to focus on controlling the controllables, drive productivity improvements and improve cost efficiency, supported by the ramp-up of Annea Colliery and Zibulo North Shaft. Thungela’s capital allocation framework remains central to our strategy and prioritises maintaining balance sheet resilience, ensuring the long-term sustainability of our assets, by investing through the commodity cycle, while also prioritising returns to shareholders.
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Thungela’s Goedehoop Colliery handed over a new borehole and JoJo tanks as part of the mine’s Social and Labour Plan (SLP) commitments and ablution units to replace unsafe pit latrines as part of their Corporate Social Investment (CSI) projects. These facilities are both aimed at restoring the dignity of residents of Ward 4 and the Driefontein and Schoeman Farms, in the Steve Tshwete Local Municipality.
Tman Mphokane, general manager at Goedehoop Colliery, said: “Access to water and sanitation is fundamental to healthy and everyday living. Without this infrastructure, communities cannot function, and families face enormous challenges. It is for this reason that we embarked on this projects that aim to improve the dignity, health and quality of life for residence of this community.”
These projects were handed over to the residents of the Driefontein Farm to help with provision of a consistent water supply for surrounding households. Additional JoJo tanks were supplied at Schoeman Farm, with the municipality committing to ensure that the tanks are filled up going forward. Together, these upgrades will go a long way in improving the well-being of residents, contributing towards the Sustainable Development Goal of provision of Clean Water and Sanitation.
It is reported that in the Steve Tshwete Local Municipality, only 45.5% of households use flush toilets, but almost the same number, 47.6%, still rely on pit latrines. A further 2.4% use bucket toilets, and another 2.4% still use open bush areas for sanitation. Only 48.1% of households rely on water trucks as a main source of water – with a further 8.5% relying on bought or delivered water.
The Steve Tshwete Local Municipality welcomed the project and acknowledged its contribution to improved basic services. “This investment is a meaningful step forward restoring the dignity of residents, improving hygiene, and safeguarding groundwater sources in the area,” said Councillor Mhlonishwa Masilela, Executive Mayor of the Steve Tshwete Local Municipality. “Access to clean water and dignified sanitation is fundamental to the health, safety, and wellbeing of our residents. We value Goedehoop Colliery’s partnership and contribution, which is sure to make a lasting and tangible difference to our communities.”
“These facilities will strengthen essential services provision in host communities and reflect our support for socio-economic development in areas where we operate. This underscores our purpose to responsibly create value together for a shared future,’ said 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.
