Since February 2020, Ngwenya Lodge has been actively seeking an alternative electricity supply solution to address the ESKOM supply challenges faced by the Shareholders of Ngwenya Share Blocks. Since then, numerous discussions have been conducted exploring various energy supply options ranging from generators to solar power. With a decision to focus on solar energy, this represents a significant step towards sustainability for the Ngwenya community.

Here’s an overview of our activities since we distributed the surveys:

RESEARCH AND CONSULTATION
March – June, 2023

A Ngwenya Shareholder introduced Innova Energy Solutions to Candi Solar, a Swiss-based company and potential solar Financing company. The first meeting between Innova Energy Solutions and Candi Solar to discuss finance options and Share Block structure took place in May 2023. It was evident that Candi Solar showed keen interest in exploring various financing opportunities with increased entity involvement. Based on Innova Energy Solutions’ representation of Ngwenya Lodge and the Solar Feasibility Report from KLS, discussions included potential adaptations or new finance models tailored for the Share Block Company. Problems encountered regarding financing were either too short term with a large deposit, a solar solution with no battery solution, or financially lopsided for the financing company and not within the scope given by the Board not to cost the Company more than current power expenditure. A subcommittee was formed to oversee the final detailed specifications and contracting on behalf of the Ngwenya Board of Directors.

Innova Energy Solutions received positive feedback from Candi Solar that they would be able to assist with finance either by way of a PPA (Power Purchase Agreement) or PLIS (Power Linked Instalment Sale). PPA would mean no ownership of the assets. The PLIS was a High-Level Solar proposal and would mean that asset would belong to the Company. Candi Solar agreed to fund the project based on Ngwenya’s electricity bill. This meant that no additional security over other physical assets of Ngwenya would be incumbered as part of the financing requirement.

In June an Engineers proposal was presented to the Ngwenya Board for the consolidation of the 7 incoming Eskom lines as per KLS and Solar requirements.

PLANNING AND PARTNER AGREEMENTS
August – December, 2023

The initial scope provided to KLS was to power the resort and supply power in the event of load shedding. In response, KLS proposed a large 1.5 MW solar plant paired with a 3 MW battery system.

The project was then handed over to Candi Solar for more detailed design work. Their engineering team visited the site to conduct a thorough assessment. After contacting Eskom to obtain load data for all seven incoming Eskom lines, Candy Solar developed a proposal for a 991 kW solar plant with a 1.5 MW battery. This solution was deemed to best meet Ngwenya’s energy needs while also being the most cost-effective option.

The proposed system was then presented to the Ngwenya Board of Directors by Innova Energy Solutions. After reviewing the proposal, the board approved a 20-year PLS (Payment Linked Installment Sale) agreement, allowing the resort to eventually own the system. At the end of the 20-year term, Ngwenya would benefit from free electricity, as the asset would belong to the resort.

PROJECT APPROVAL AND SITE PREPARATION
March – August, 2024:

Innova Energy Solutions presented the proposal and pricing to the Sub Committee, whom subsequently gave their recommendations to the Board for final approval in March 2024.

Since March, the solar site preparation has achieved a key milestone with the completion of all earthworks, which included refining the terrain and managing excess soil. Surveyor conducted a thorough survey of the site and submitted their final benchmarks to the appointed project surveyor. These benchmarks provide precise guidance for the project’s next steps.

Fence Installation – The updated quotation from JHV Fencing was accepted, and the fence installation has commenced. The fence is currently 90% complete, with only the installation of the energizer and electrified offsets outstanding. These components are essential for the security and functionality of the site.

PV Panel Delivery – A partial delivery of 936 PV panels has been received, with 720 panels still outstanding. This delivery will enable the project to proceed with the panel installation as soon as the first section of the solar bed is ready.

PV Structures and Footing Installation – All PV panels and structures have been successfully installed, marking a major project milestone.

Solar Bed Footing Casting – The casting of the solar bed footings is progressing steadily, with 361 out of 740 footings completed, resulting in a 48.8% completion rate. An additional 40 footings are in stock, ready for installation, ensuring the project remains on schedule.

INSTALLATION
September – November, 2024:

The solar site installation has reached a pivotal stage, with the completion of PV panel and structure installation. The project has also progressed with inverters, transformers, and electrical stringing, setting the foundation for full operational readiness. Final steps include internal grid installation and preparing for the arrival of the Battery Energy Storage (BES) system.

PV Panels, Structures, and Inverters – All PV panels and structures have been successfully installed; Inverters have been fully installed, and the transformers have been placed on the plant, creating a complete setup for energy generation and conversion.

Electrical Stringing and Internal Grid Installation – The stringing from the PV panels to the inverters is now complete, enabling power flow within the system. Currently, the installation of the internal grid is underway, with one remaining structure to be installed. After this, the team will complete the road crossing to connect the installed transformer and finish routing the network on top of all poles to the structures.

Fiber Optic Installation for Redundancy – The resort has proposed the installation of fiber optic cables alongside the overhead cables. This addition will provide redundancy for network communications, ensuring continuity in case of any ground-level connectivity issues.

Battery Energy Storage (BES) System -The BES system is currently in transit and is expected to arrive at port on the 7th of December. Once it arrives, the installation will be scheduled to complete the energy storage component of the system.

UPCOMING WORK

Stringing: Completion targeted for November.
Termination: Set to be concluded by November.

PROJECT COMPLETION STATUS

Physical Construction: The project’s physical construction is 92% complete. The BES remains the largest component still pending.

Total Solar Alignment: The alignment progress is at 84%, with upcoming work focused on integrating backup diesel generators and hybrid system communication.

With the PV panels, structures, and inverters fully installed, and stringing completed, the project is nearing full completion. The internal grid and upcoming BES installation will finalize the setup, and fiber optic installation will add network resilience.

Commissioning Plan: To mitigate potential risks and avoid extended outages during alignment, the decision has been made to begin commissioning the plant mid January, after peak season. This timeline ensures reliability for our clients while finalizing all system components.

We as Ngwenya Team are dedicated to pursuing innovative solutions that mitigate the immediate impacts of load shedding and foster our long-term prosperity and resilience. Thank you for your ongoing support and confidence in Ngwenya Share Block Companies.

This report reflects substantial progress across all areas, keeping us on track for successful project completion. We will continue to monitor and provide updates as we finalize the remaining components and prepare for commissioning.

MORE UPDATES TO FOLLOW

LINGERING CONCERNS AND PERSISTENT PURSUITS

A CLOSER LOOK AT MINING APPLICATION MP 30/5/1/2/2/10259MR

An application for a mining permit, designated as MP 30/5/1/2/2/10259MR, has resurfaced, drawing attention to the persistent endeavours of a particular company seeking mining rights over portions of Tenbosch, Turbelt, and Tecklenburgs Ranch. This company has consistently pursued mining activities in the region, despite encountering repeated setbacks, since before 2012. Their continued efforts have been marked by a string of failures, undue processes and not adhering to legal requirements has characterised their pursuit. Their pursuit and sequence of unsuccessful attempts has been characterised by myriad issues and concerns raised that have served to highlight their modus operandi of shortcuts and legal noncompliance.

Just to illustrate a few of the shortcomings:

• Continued Non-Compliance with NEMA: The public participation processes conducted in the past did not align with the requirements set forth by the National Environmental Management Act (NEMA), indicating a lack of adherence to crucial environmental regulations.
• Unaddressed raised objections and concerns: Concerns and objections raised by stakeholders have not been satisfactorily resolved and have failed to meet the standards required by the Department of Mineral Resources (DMR), further underlining their untrustworthy modus operandi.
• The need for Specialist Studies undermined: The sensitive environmental nature of the area necessitates comprehensive, specified specialist studies, a requirement that has not been met by the applicants.
• Lack of Consultation and Proof thereof: Evidence and outcomes of consultations with the Department of Water, and other stakeholders, are a critical aspect in assessing the potential impact on water resources. These were conspicuously absent from their previous submissions.
• Agricultural Land and Rehabilitation Plans not being evident: Given that the land in question holds agricultural significance, the absence of a detailed mining plan and a robust rehabilitation strategy poses substantial concerns regarding the potential ecological repercussions.
• Plagiarism and Legal Implications: Previous environmental assessments were tainted by allegations of plagiarism, resulting in a criminal charge against the consultants involved, casting doubts on the credibility of the entire process.

Despite these recurring unresolved issues, the company in question persists in its pursuit of mining rights within the area. A history marked by repeated shortcomings has not deterred their determination to secure their desired outcome of mining rights that would undoubtedly lead to the destruction of the sensitive ecological environment, and the heritage of the Kruger National Park.

This reality serves as a poignant reminder to stakeholders and concerned parties to engage actively in the ongoing process. The potential ramifications on the environment, agricultural lands, and the community underscore the significance of vigilant oversight and stringent adherence to regulatory protocols.

Given the gravity of the situation and the persistent nature of the applicant’s efforts, a renewed call for engagement and vigilance from stakeholders is imperative.

The continued resurgence of the mining application, despite a history marred by unresolved concerns, warrants a renewed emphasis on our shareholders to ensure that all attempts to mine in the area are approached in compliance with the relevant legislation, with transparency, and with the safeguarding of environmental integrity as the primary outcome.

The collective voice and vigilance of stakeholders remains pivotal to shaping the outcome of this protracted mining rights application saga, MP 30/5/1/2/2/10259MR.