Diversified resources company Exxaro Resources has concluded an agreement with Khopoli Investments, a subsidiary of Tata Power Company, to acquire Khopoli’s 50% shareholding in independent power producer Cennergi for R1.55-billion.
This will give Exxaro 100% ownership of Cennergi and is in line with Exxaro’s ambitions of growing its presence in the energy sector.
Cennergi owns the 134 MW Amakhala Emoyeni Wind Farm and the 95 MW Tsitsikamma Community Wind Farm, in the Eastern Cape.
“The collaboration between Exxaro and Tata Power over the past seven years to develop these projects to their current status has been commendable and an outstanding success in South Africa’s implementation of its energy strategy.
“As a South Africa-based company, Exxaro is pleased with this opportunity to consolidate its interest in this renewable-energy asset at a time in South Africa when we need energy security as we respond to increasing negative sentiment towards coal-based electricity generation,” said Exxaro CEO Mxolisi Mgojo.
Exxaro is among South Africa’s biggest coal miners and supplies coal to the export market, as well as to State power utility Eskom.