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

After extensive research and consultations by the Ngwenya Solar Subcommittee, it was decided that solar power was a viable option.

KLS Consulting Engineers designed a 1.5MW solar plant with battery backup, sized to handle 4 hours of load shedding. This was set as part of the requirements originally set by the Board as an aim to provide a solution to the load-shedding problem. After receiving the initial proposed design, which has been over specked, and obtaining initial financing figures from Candi Solar Ngwenya’s electricity costs could be fixed to R2.90 per kWh with a 7% annual escalation over 20 years, compared to Eskom’s escalating rates. The proposal further included a battery backup solution which would ensure guaranteed adequate battery backup for 4 hours at a time to combat the impact of load shedding. The solar plant’s capacity should meet 75% of Ngwenya’s needs. The contract proposed would ensure that the technology gets updated as required to meet a minimum of 75% of the demand for Ngwenya as needed. The proposal includes relocating generators for backup and implementing energy-saving measures. Ngwenya may eventually become an independent power producer, selling excess electricity to the grid. ELR Electrical Engineers approved to engage with Eskom and begin applications and drawing for new infrastructure.

In October, Innova Energy Solutions and Candi Solar was officially appointed as the project partners, marking a significant milestone in our journey towards solar energy integration. Site preparations commenced, laying the groundwork for the installation of solar panels and associated infrastructure.

Eskom load data received detailed simulations done by Innova Energy Solutions and Candi Solar. This would give the correct sizing of the Solar Plant and backup power. Letter of Intent was signed between Innova Energy Solutions and Candi Solar for the Ngwenya Solar Project.

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 – Magtron has made substantial progress in levelling and placing the footings. To date, 295 out of 740 footings have been placed, representing a 39.9% completion rate. Additionally, 114 out of 368 PV structures have been fitted, achieving a 31.0% completion rate.

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.

Panel Installation Status – Despite the arrival of the PV panels, no panels have been installed yet, as the first section of the solar bed has not been fully completed. The project team is focused on completing this section to allow for the commencement of panel installation.

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. We eagerly anticipate updating you on our progress as we embark on this transformative journey together.

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.