UAE's IRH join hands with SA's PIC to improve mining logistics

The United Arab Emirates (UAE)-based natural resources company International Resources Holding RSC (IRH), has signed a Memorandum of Understanding (MoU) with the Public Investment Corporation SOC (PIC) to collaborate in South Africa with a focus on unlocking value across the mining, green energy and transport & logistics sectors.

The PIC is wholly owned by the South African government and has ZAR 2.89 trillion ($165.6 billion) assets under management, making it Africa’s largest asset manager.

"IRH has committed to deploying its extensive technical and financial expertise with a focus on boosting economic growth, job creation and sustainable development across South Africa for the mutual benefit of both parties," reads the release. 

The collaboration includes the enhancement of transport & logistics infrastructure: target an increase in export capacity over the next few years by addressing critical bottlenecks in key mining corridors leading to the Richards Bay, Saldanha, and Durban ports. This enhancement is anticipated to facilitate increased efficiency of transport and increase South Africa’s export capacity.

Optimising mining opportunities: bringing underperforming and undeveloped mining assets to full production capacity by applying best practices in mining operations, including advanced technologies and innovative methodologies. Collaboration between the IRH and the PIC will seek to unlock the full potential of these assets, ensuring that they contribute effectively to the economic objectives of all stakeholders involved.

Developing sustainable green energy: support South Africa’s commitment to reduce greenhouse gas emissions and transition towards sustainable energy sources. This initiative is designed to offset the energy production capacity of the coal-fired thermal plants scheduled to be decommissioned.

Creation of an AI-enabled geoscience company: establish a cutting-edge geoscience company that will conduct extensive geological surveys and research, employing advanced artificial intelligence (AI) and data analytics to identify and assess new mining opportunities.

Ali Rashdi, CEO of International Resources Holding commented: “We are delighted to announce this partnership with the PIC on this breakthrough agreement, which will see both parties work together to unlock value across the mining sector and accelerate new sustainable energy initiatives. This MoU represents a step forward in realising South Africa’s full economic potential and addressing the current energy and logistics challenges the country is facing. With a business model centred on leveraging cutting-edge technologies and artificial intelligence throughout upstream, midstream, and downstream processes, we are able to address critical industry challenges and are dedicated to creating substantial in-country value for the communities, companies, and nations with which we partner.”

Kabelo Rikhotso, Chief Investment Officer for the PIC, believes the MOU will positively contribute to provide solutions for existing constraints to economic growth, job creation and sustainable development in South Africa. He commented: “By leveraging our combined financial and technical expertise, we hope to contribute to the broader development goals of South Africa and Africa as a whole.”