Minergy Limited (MIN.bw) 2022 Integrated Annual Report
Having been involved with Minergy since 2017, when the Company was listed on the Botswana Stock Exchange, it gives me great pleasure to report to shareholders and stakeholders that full production capacity of 125 000 tonnes per month has been consistently achieved post the year-end.
Minergy is blessed with having a high-quality and vast coal resource. The mine was established and became operational in record time once it was granted a mining licence.
However, market conditions, including the impact of the COVID-19 pandemic, turned against the Company for a couple of years.
Thankfully, I am pleased to report that the executive and operational management teams have pulled all resources together to ensure the Group achieved profitability towards the end of the financial year, which was supported by favourable market conditions, our high-quality coal and our ability to supply products consistently. Exacerbated by the war in Ukraine, coal demand dynamics shifted in Minergy’s favour.
This was mainly due to coal being embraced as the “go to” energy source in the energy crisis arising around the world and the global pursuit of alternative suppliers of consistent, high-quality thermal coal. This has resulted in attractive coal prices, which Minergy expects will be sustained for some time as the world grapples with securing alternative power generation sources to keep economic activity going.
Health, safety and employment
As a mining operation, our people’s health and safety remain paramount. Minergy continues to uphold an outstanding safety record, having had only one minor lost time injury (“LTI”) during the year. We are grateful to be fatality free on the back of our strictly managed health and safety systems.
COVID-19 remains a challenge, with a total of 138 cases reported since the pandemic’s start, 78 of which were recorded during the year. Thankfully, all staff have fully recovered. Minergy is committed to providing its workers with a safe work environment. As of the end of the full year, 97% of employees were fully vaccinated.
Minergy’s operation of the Masama Coal Mine ensures employment for 442 people. It is a well-known fact that this creates indirect benefits for several dependants. In the case of Minergy, it demonstrates active support for economic growth and prosperity for at least 3,200 Batswana.
Changes to the Board
Claude de Bruin resigned as Non-executive Director (“NED”) and Chairman of the Remuneration and Nominations Committee (“REMCO”) with effect on 15 July 2022.
Claude is a founding shareholder and was instrumental in the BSE listing of Minergy Limited and the establishment of the Company, navigating the setup and rollout of the strategic plan as an integral part of the team.
He has played an essential role as Chairman of REMCO, establishing and implementing related policies and procedures. His efforts, dedication, and strategic inputs are highly valued, and we wish Claude well on his future journey. Leutlwetse Tumelo will replace Claude as Chairman of REMCO with immediate effect. Leonard Makwinja tended his resignation from the Board with immediate effect as of 19 September 2022, to pursue other business interests. Minergy wishes to thank Leonard for his contribution to the Board.
The Board is pleased to announce the appointment of the Acting Chief Financial Officer (“CFO”), Julius Ayo, to the Board of Directors, with immediate effect. Julius is appointed as an Executive Director.
Community support and involvement
The Company recognises Minergy’s responsibility to mine and operate responsibly and will continue to do so, along with providing stakeholder support to benefit the community.
The Company’s contribution to the community, the surrounding areas and to Botswana as a country is often not adequately emphasised.
Readers are referred to the “Minergy Cares” tab and electronic brochure on the website for various social investment highlights, which can be accessed by following this link:
Planned community support projects include the provision of wi-fi to the Medie Primary School, the clinic and the Kgotla, as well as the rehabilitation of the Medie village dam.
As I end my note, I would like to thank Minergy’s employees, the executive and management for their continued efforts during the year, under trying market conditions. Despite the challenging conditions, you were able to ensure that we ended the year on a strong footing.
We remain thankful to our shareholders and funders for the ongoing support of Minergy and the Botswana government for providing an enabling operating environment.
To our customers and contractors, thank you for your continuing support and commitment. In the case of new customer relationships cemented during the year, Minergy looks forward to long-standing relationships given our supply of high-quality products.
Thank you to my fellow Board members for their efforts, care and dedication during the year. A Non-executive Director role comes with a great deal of responsibility and time that has to be allocated to various fiduciary duties, which I certainly appreciate.
Given the robust market dynamics and pricing, I am confident that Minergy will be able to capitalise on these and so ensure the ongoing sustainability of the Masama Coal Mine. Together with our conscious investment and support to the villages in and around our area of operation, our efforts will ultimately support the Botswana economy.
Independent Non-executive Chairman
26 October 2022
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