South African exec Mike Teke’s Seriti Resources to invest $730 million in wind farm

Omokolade Ajayi -

Seriti Resources Holdings, a leading coal company run by South African business executive Mike Teke, plans to invest $730 million in the construction of a 450-megawatt wind farm in Mpumalanga in eastern South Africa.

Seriti Resources, which produces about 50 million tonnes of thermal coal, made a strategic entry into the renewable energy industry due to pressures to reduce fossil fuel production and a push for cleaner, more sustainable energy sources on a worldwide scale.

The investment, which will be completed in the first quarter of 2023, is a watershed moment in Seriti’s transition into renewable energy, as it moves to develop its green energy business, reduce its carbon footprint, and ensure long-term sustainability as a diversified energy producer.

It is not only the ethical thing to do, but it also makes commercial and societal sense, Teke, CEO of Seriti Resources, said. “We need to be moving toward a lower carbon future by investing capital from coal into green energy,” he added.

Last week, Seriti decided to purchase a 51-percent stake in Windlab Africa’s wind and solar assets through its subsidiary Seriti Green for R892 million ($55 million). The acquisition aligns with its strategic ambitions for growth and transition to a clean energy economy.

After the transaction is complete, Seriti Green, Seriti Resources’ subsidiary for renewable energy, will acquire a controlling stake in Windlab Africa, the African division of Australian wind farm operator and project developer Windlab Pty Ltd.

Meanwhile, the remaining stake will be held by Rand Merchant Bank (14.5 percent), Standard Bank (14.5 percent), Windlab Managing Director Peter Venn (15 percent), and Ntiso Investment Holdings (five percent).

The $55-million deal marks a significant step toward Seriti’s goal of becoming a diversified energy company, as it will provide long-term financial stability and diversification while embracing alternative energy sources and assisting in securing the nation’s power needs.