Coal miner and trader Wescoal, which has been eyeing investments into wind and solar, has proposed changing its name to Salungano Group to better reflect a more diverse focus.
Salungano is the Venda word for heritage and passing on knowledge, and should the name change be approved by shareholders, it is expected to take effect in April.
Wescoal continues to have strong roots in coal mining, the group said, but as the company diversifies, it can no longer operate as Wescoal, as the name implies it is a coal company.
The group, valued at R798m on the JSE, owns coal mines in Mpumalanga and also operates a coal-trading business. It counts power utility as its main customer, and had generated a record 4.7-million tonnes of production in the first half of its 2022 year.
Wescoal has the objective of becoming a diversified energy company in the medium to long term, thereby transitioning from being a coal-focused mining and trading company. The group said in December during the release of its results for the six months to end-September it had “already started looking at opportunities in the wind and solar market”.
The coal industry in particular is coming under pressure as institutional investors increasingly shy away from more polluting industries. Financiers, such as banks, are also under increasing pressure not to offer financing for new coal projects.
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