Nedbank CIB backs DRDGold with R2bn for mining expansion

Nedbank Corporate and Investment Banking (CIB) has committed up to R2bn in flexible financial solutions, comprising short- and long-term finance facilities, to support DRDGold Limited’s ambitious capital investment programme over the coming years.

This strategic partnership underscores Nedbank CIB’s dedication to supporting SA’s gold mining sector by backing innovative and responsible practices.

DRDGold, established in 1895, is an SA-based world leader in large-scale mechanised, on-surface mining. As the country’s oldest listed mining company, it focuses on environmental sustainability and operational efficiency.

Sustainability is at the core of DRDGold’s business, aligning with its purpose to reverse the environmental legacy of mining and improve quality of life. It uses its tailings recovery process to create value from what was once considered waste. 

Through rehabilitation, DRDGold is making land available for people and economic activity, ensuring its reintegration into natural ecosystems. It is also creating jobs through procurement, while its socioeconomic development programme aims to improve the quality of life for employees and their communities. 

A large portion of the mining company’s investment will go towards creating a reliable, cost-effective power supply. The company is constructing a 60MW solar power plant and a 160MWh battery storage system at its Ergo operations in Brakpan, which will meet 50% of its energy needs.

Additionally, its subsidiary, Far West Gold Recoveries located near Carletonville, will construct a regional tailings storage facility to expand operations in the area. These initiatives demonstrate DRDGold’s commitment to lowering its carbon footprint and promoting responsible mining.

While most of DRDGold’s capital expenditure will be covered by its cash reserves and operating cash flow, Nedbank CIB’s debt facilities will provide the additional financial flexibility needed to support its investment plans.

“The tailings retreatment undertaken by DRDGold is a positive story for SA. By safely redepositing these tailings into modern storage facilities, the company is managing the environmental impact of historical mining practices,” says Greg Webber, co-head of Mining and Resources at Nedbank CIB.

Webber adds that Nedbank CIB’s flexibility in structuring financial solutions and its mining finance expertise were key enablers in supporting DRDGold’s goals. “This partnership shows how Nedbank CIB’s cross-sector capabilities help clients achieve their growth objectives while contributing to SA’s economic and environmental wellbeing.”

Niël Pretorius, CEO of DRDGold, expressed his enthusiasm for the partnership: “This collaboration with Nedbank CIB is a significant milestone. It provides us with the financial backing to expand our operations and aligns with our commitment to responsible mining. Together, we are setting a new benchmark for the industry and contributing positively to SA’s environmental and economic landscape.”

This article was sponsored by Nedbank CIB.