Glencore makes R2.8bn payments to SA amid energy transition plans

GLENCORE expects to fulfil expenditure obligations related to its acquisition of Astron by September 2027 after initial payments totalling $185m as at September last year.

- TAWANDA KAROMBO

GLENCORE said it made tax, royalty and duty payments amounting to $157 million (around R2.8 billion) to South Africa in 2024 as it considers dialogue with government and other players as key for the country's energy transition.

In the year to December 2024, Glencore's total payments to governments in markets in which it operates topped $3.7bn, calculated “in line” with the UK Transparency Requirements.

Over the same period, Glencore suffered about $611m worth of impairments in its South African operations, significantly contributing to the company's $1.6bn in losses to equity holder.

The $157m in payments to the South African government for 2024 were accounted for by $111.5m in income taxes, $45.3m in royalties.

An additional $1.2bn in “taxes and duties relating to non-extractive activities plus other taxes” was also paid to SA during the same period, said the company.

By province, the multinational commodity trading and mining company's ferroalloys project in Limpopo paid $69.7m to the government while its energy coal operation in Mpumalanga contributed $41.1m.