Good afternoon, everyone. I'm Toby Ellis, the Company Secretary, and it gives me great pleasure to welcome you to the fourth annual general meeting of Thungela shareholders. This meeting is hosted both in person and virtually. I would like to take a few moments to introduce our directors and executives in attendance this afternoon. I am joined by the Board Chairman and Chairman of the Nomination and Governance Committee, Mr. Sango Ntsaluba, Independent Non-Executive Director, recently appointed Lead Independent Director and Chairman of the Remuneration and Human Resources Committee, Mr. Benjamin Kgosana, Independent Non-Executive Director and Chairperson of the Audit Committee, Ms. Nonkqubela Jordan, Independent Non-Executive Director and Chairman of the Health, Safety and Environment and Risk Committee, Mr. Seamus French, Independent Non-Executive Director and Chairperson of the Investment Committee, Ms. Yodwa Gqada, Independent Non-Executive Director and Chairman of the Social Ethics and Transformation Committee, Mr.
Thomas McKeith, the Chief Executive Officer and Executive Director, Mr. Julian Ndlovu, the Chief Financial Officer and Executive Director, Mr. Gideon Smith, Executive Committee members, Mr. Yohan van Schalkwyk, Mr. Lesehu Mateboge, Mr. Mpumi Sitole, Mr. Leslie Martin, Ms. Corina Fenter, Mr. Dan Reynolds, and Mr. Bernard Dalton. Also joining us this morning are representatives from our auditors, PwC, as well as our sponsor, RMB, our corporate broker in the U.K., Panmure Gordon, our advisors on remuneration and reward, Bowmans, and our transfer secretary, Computershare. Before we begin with the order of the meeting, I would like to take a moment to talk you through how to navigate the online platform. Once you have successfully authenticated, you will access the home screen, where you will see icons to access the webcast, to vote, and to ask questions via the chat function or verbally.
The icon highlighted in blue indicates the active page. As soon as the Board Chairman has declared the voting open, resolutions and voting options will appear, and you can select your voting decision. You can vote for all resolutions at once or individually. Your vote will be cast when the green tick appears. You can also change your vote by selecting the Change Your Vote icon. Voting will be followed by a question and answer session. All shareholders or their proxies attending the meeting are eligible to ask questions. For shareholders attending in person, please raise your hand, and a member of our team will provide you with a microphone. For shareholders and proxies attending remotely, you can select the Q&A icon and type your question into the box at the bottom of the screen and click Send.
You can also make use of the telephone number and access code provided to dial into the meeting to ask your questions verbally. Press star one to ask a question, star two to withdraw your question, or star zero for operator assistance. I will now hand over to Sango Ntsaluba, our Board Chairman.
Thank you, Toby, and good afternoon to everyone. I hope all of us heard when there was the safety announcement that if you are evacuated, you can't get back to your building to get your car. Now, there's one person I spoke to who is not parked here, our CFO. I was suspicious. I said to him, "But everybody's parking here. Why are you not parking here?" As usual, he had a long story, which is convincing. Now I know that he probably realized if in that eventuality he won't be able to reach his car. Since our last AGM, we have welcomed two new members to Thungela. Mr. Thomas McKeith has been appointed as Independent Non-Executive Director and Chairman of the Social Ethics and Transformation Committee. Additionally, Mr. Dan Reynolds has joined the Executive Committee in his role as the Executive Head of Thungela, Australia.
I would like to extend a warm welcome to both of them to this AGM. At this meeting, the quorum requirements have been successfully met with a minimum requirement of 25% of the issued shares in attendance. I declare that this meeting is properly constituted. The notice convening the annual general meeting has been given in terms of the Company's Memorandum of Incorporation and the Companies Act, and has been with you for the prescribed period. I now propose that the notice of the annual general meeting be taken as read. Are there any objections? Considering there are none, today's meeting has a three-part agenda. Firstly, we will present Thungela's audited financial statements for the year ended 31 December 2024. That will be followed by the tabling of the Social Ethics and Transformation Committee report.
Finally, the adoption of the ordinary and special resolutions as set out in the notice of the AGM. Before I move to the first part of the agenda, I would like to provide a brief overview of our business. Demand for our high-quality thermal coal product continues to feature in the global energy mix. Our resolve for growth has been undertaken in a world of geopolitical uncertainties, infrastructure complexities in South Africa, and impact of softer price environment. However, we continue to make significant progress in executing our strategy. This is a testament to our commitment to value creation for our stakeholders. Safety remains our first value. We are unconditional about protecting the lives of our people. I am pleased to report that we have operated a fatally free business for more than two years.
Whilst we celebrate accomplishment resulting from our efforts, we remain vigilant, recognizing our commitment to ensure that all our employees return home unharmed to their families each and every day. In driving our ESG aspirations, our ambition to spike on social is headlined by the significant cash contributions we have made to the Sisonge Employee Scheme and the Nkulo Community Partnership Trust. Together, the two trusts received ZAR 204 million during the 2024 reporting period. At Thungela, we are committed to responsible environmental stewardship. This entails conserving natural resources, minimizing mining's inherent negative impacts, and restoring the land we disturb for productive use. Governance effectiveness has been a key focus area during the year, and we have progressed towards our goal of becoming a world-class board.
The board's diverse set of knowledge, skills, and experience informs our business decisions, with a commitment to demonstrating and entrenching a culture of ethics and good governance across the group. We continue to progress on our geographic diversification strategy objectives. We have acquired a further 15% interest in the Ensham mine that will enhance the group's production profile and earnings. The Thungela Marketing International business in Dubai is now fully operational and making a positive contribution to the business. This is a clear demonstration of our ability to operate in various geographies. In addition, our South African operations increased production for the first time in three years. Our two life extension projects continue to progress in building a long-life competitive business. The completion of the Elders construction phase is a major achievement and its ramp-up is in progress.
The Zibulo North Shaft project is also progressing as planned and will extend the life of the Zibulo operation to 2038. Thungela's capital allocation framework remains the cornerstone of our strategy and prioritizes returns to our shareholders. Our approach acknowledges the adverse preferences of our shareholder base and will provide returns to our shareholders through a combination of dividends and share buybacks. The total returns to shareholders in relation to 2024 performance is ZAR 23 billion, sorry, ZAR 2.3 billion, including share buybacks representing 64% of adjusted operating free cash flow. That is above the estimated dividend policy of a minimum of 30% of adjusted operating free cash flow. This reflects our confidence in the group's attractive long-term outlook and robust financial position.
The Thungela Annual Reporting Suite, which is comprised of the annual financial statements, the integrated annual report, and the environmental, social, and governance report, provides a transparent account of our performance for 2024. The annual reports have been compiled in accordance with the various reporting frameworks, standards, and best practices. Sorry, this demonstrates our commitment to improve disclosure and meet the evolving reporting expectations of our stakeholders. These reports should be read together for a complete understanding of our business and performance and are available on the Thungela website. This concludes my review. Moving to the first item of the agenda, we will present Thungela's audited annual financial statements.
We confirm that Thungela's audited financial statements for the year ended 31 December 2024, together with the reports by the directors, sorry, sorry, the reports by the directors, the external auditors, and the Audit Committee, were approved by the board on 14 March 2025. Our results were released on Monday, 17 March 2025. Next on the agenda, we advise our shareholders that our Social Ethics and Transformation Committee report has been published as part of the integrated annual report. This report deals with environmental, social, and transformation topics, as well as other matters included in the committee's mandate. The 2024 report is available on the Thungela website under the Investor tab. Now, moving to the final item on our agenda, the company resolutions. Voting for this meeting shall proceed by way of a poll, which will be conducted electronically through the online facility provided by Computershare.
For the purposes of the poll, I nominate representatives of Computershare who are present at this meeting to act as scrutineers. All the resolutions to be proposed at today's Annual General Meeting have been seconded by Toby Ellis, the Company Secretary. I will now open the voting on the electronic online facility, and voting can be performed on all the resolutions at any time during the meeting until I close the voting on the resolutions. We have received a few questions in advance of today's meeting, and you can submit your questions in the chat function in writing whilst the poll is open. Shareholders attending virtually would also have received a telephone number and an access, sorry, and an access code which will allow them to ask questions verbally in the meeting.
Questions pursuant to the motions will be discussed after I have tabled the late, sorry, the last resolution of the agenda. We'll now proceed with the tabling of the resolutions for approval by the shareholders. Let's begin with the ordinary shareholders. Ordinary Resolution Number One, reappointment of the independent external auditors. I propose Ordinary Resolution One, which is taken as read. Please complete your voting in respect of Ordinary Resolution One. Ordinary Resolution Two, appointment and re-election of retiring directors. Ms. K. W. Mzondegui and Mr. S. G. French are retiring due to the requirements in the MOI for one-third of the non-executive directors to retire and be eligible for re-election by rotation every AGM. Mr. T. D. McKeith is retiring due to the requirements of the MOI for the newly appointed directors to retire and be eligible for election at the first AGM of the company following their appointment.
I propose that Ms. Koleka Mzondeki be re-elected as non-executive director. I propose that Mr. Seamus French be re-elected as a non-executive director. I propose that Mr. Thomas McKeith be elected as a non-executive director. Please complete your electronic voting in respect of Ordinary Resolutions 2.1 to 2.3. Ordinary Resolution Three, election of the Audit Committee members. The following individuals are recommended for election to the Audit Committee as required by the Companies Act and the JSE listing requirements. I propose that Ms. Koleka Mzondeki be re-elected as a member of the Audit Committee. I propose that Mr. Thomas McKeith be elected as a member of the Audit Committee. I propose that Mr. Benjamin Kgosana be re-elected as a member of the Audit Committee. Please complete your voting in respect of Ordinary Resolution 3.1 to 3.3. Ordinary Resolution Number Four, election of Social Ethics and Transformation members.
The following individuals are recommended for election to the Social Ethics and Transformation Committee as required by the Companies Act as amended on 27 December 2024. I propose that Mr. Thomas McKeith be elected as a member of the Social Ethics and Transformation Committee. I propose that Ms. Yodwa Gqada be elected as a member of the Social Ethics and Transformation Committee. I propose that Mr. July Ndlovu be elected as a member of the Social Ethics and Transformation Committee. Please complete your voting in respect of Ordinary Resolution 4.1 to 4.3. Ordinary Resolution Number Five, approval of the remuneration policy. I propose Ordinary Resolution 5.1, the approval of the remuneration policy, which is taken as read. Please complete your voting in respect of Ordinary Resolution 5.1. I propose Ordinary Resolution 5.2, the approval of the implementation of the remuneration policy, which is taken as read.
Please complete your voting in respect of Ordinary Resolution 5.2. Ordinary Resolution Number 6, general authority for directors to allot and issue ordinary shares. I propose Ordinary Resolution 6 , the general authority for the directors to allot and issue ordinary shares up to 5%, which is taken as read. Please complete your electronic voting in respect of Ordinary Resolution 6. The final Ordinary Resolution Number 7, authorization to sign documents to give effect to resolutions. I propose Ordinary Resolution 7, the authorization to sign documents to give effect to resolutions, which is taken as read. Please complete your voting in respect of Ordinary Resolution 7. Let us now move to the special resolutions. Special Resolution Number 1, general authority to acquire the company's own ordinary shares.
I propose Special Resolution One, the general authority to acquire up to 10% of the company's issued ordinary shares as set out in the notice to the AGM, which is taken as read. Please complete your voting in respect of Special Resolution One. Special Resolution Number Two, remuneration payable to non-executive directors. I propose Special Resolution Number Two, the remuneration payable to non-executive directors as set out in the notice of the AGM, which is taken as read. Please complete your voting in respect of Special Resolution Two. Special Resolution Number Three, approval of the granting of financial assistance in terms of Sections 44 and 45 of the Companies Act of South Africa.
I propose Special Resolution Three, the approval for the granting of financial assistance in terms of Sections 44 and 45 of the Companies Act of South Africa as set out in the notice of the AGM, which is taken as read. Please complete your voting in terms of Special Resolution Three. We can now move to the question and answer session. I will now hand over to Toby to lead the Q&A session. Toby.
Thank you, Sango. In terms of the Q&A, we will start with questions received in advance of the AGM, followed by questions submitted via the chat function. We will then open the line for questions, and finally, we will conclude with questions from those in the room today. For shareholders and proxies attending remotely, you can select the Q&A icon and type your question in the box at the bottom of the screen and click Send.
You can also make use of the telephone number and access code provided to dial into the meeting to ask your questions verbally. Press star one to ask a question, star t wo to withdraw your question, or star zero for operator assistance. Let's start with the questions received ahead of the AGM. What is the impact of the markets, for example, the softening prices mean for Thungela? The answer to that is the successful, sorry. The successful execution of our strategic priorities paves the way for the group to capitalize on the robust long-term fundamental supporting coal globally. We view the markets in two parts, the Global West and the Global East. The Global West being the U.S. and Europe will continue to implement renewables at a rapid pace.
The Global East continues to ramp up coal-fired power generation, which will require many years of coal supply to realize the full value of these new power stations. Although both China and India have coal supply, the quality and cost to rail the coal to coastal regions in country where the new power stations have been built will require the supply of imported coal from the seaborne market. Suppliers of coal in the East, such as Indonesia, have seen an increase in the domestic market obligations to 240 tons as a result of the increase in the nickel processing capacity, which has come online. This will result in a shortfall in the seaborne coal that Thungela can then support across our multiple geographies. The second question received was, what is the timing of the new CEO joining the board, and is there a transition plan in place?
The incoming CEO will commence on 1 August 2025, at which time the handover will commence. This approach was carefully considered by the board to ensure that a timely, thorough handover process is in place, although the current CEO will remain available to the incoming CEO and the board until 31 December 2025. The third question is, will the new CEO change the strategy? The strategy belongs to the board, and should the strategy change, it will be well considered by the board. Any changes will be well explained to the shareholders. The board has also moved its annual strategy session to a later date in the year to allow the incoming CEO to understand the current strategy and participate in discussions. Let's now go to questions submitted via the chat.
Sorry, I didn't know whether the CEO on the first question might want to add any color on that, metaphologies for that.
No problem. I guess, Chair, the point being made is that coal, like all other commodities, are cyclical, and you go through these cycles where prices are very good and prices are where they are at the moment, which is at the bottom of the cycle, and the markets are quite soft. We monitor those very carefully. As a board and as management, our role first and foremost is to ensure that we operate these assets responsibly and make sure that we've got a portfolio that is resilient, that can compete through the cycle. That is what we set out to do and have done very well as an organization.
We still believe that these markets will turn, and therefore all investment decisions that we've made in life extensions is to ensure that we position the group to be able to take advantage of these market fundamentals when, in fact, they do turn.
I think, CEO, thank you very much. Thanks, Toby. I also just wanted to add a little bit on the two other questions, and I think you have correctly captured that. The strategy belongs to the board working with the CEO and the executives. If there's ever going to be any change in strategy, that matter will be processed by the company, approved by the board based on discussions that take place. The process of the incoming CEO, obviously, as Toby has said, it's a process which the board has spent a fair amount of time on.
The period of the two gentlemen working together is well crafted, well executed to ensure that there is nothing that falls between the cracks. Thanks, Toby. Over to you.
Thank you, Sango. We've received questions by Ms. Nkugwe, and she's from ESG Insight SA on behalf of various pension fund shareholders. She poses the following three questions. The first is governance, board diversity, and ESG oversight. The question is as follows. The board is 25% female and 63% Black, but remains male-dominated and below industry diversity best practices and peers. What steps is Thungela taking to accelerate gender and skills diversity at both executive and operational levels, particularly in STEM and sustainability roles? [crosstalk] Up to one. I don't know. Is there a lot of questions? Maybe we take one of them. There's two more. Should I read all of them? All of them. Thank you.
The next one relates to governance of capital allocation. Thungela returned 64% of adjusted free cash flow to shareholders in 2024 via dividends and a ZAR 328 million buyback. As shareholders, we love dividends. However, how does the board evaluate the trade-off between returning capital to shareholders versus investing in long-term value-adding projects, especially in a volatile commodity and ESG-sensitive environment, and a 29% drop in net profit? I'll move on to the third question, which relates to climate strategy and emissions reduction. Thungela has committed to a 30% reduction in Scope 1 and 2 emissions by 2030 and a net zero by 2050. Given the recent recalibration of your emissions baseline and the 20% reduction recorded by 2024, can the board clarify what interim performance indicators, scenario planning, and penalties exist for underperformance?
Thank you very much. Thank you, Toby. I think let's take those.
CEO, if you don't mind, I will ask that on the second, that was on the capital allocation. You just take the lead, and also on the third, then we will add on that. Just on the first question of the board diversity, I think we will all remember that it's a requirement of the JSE for the disclosure of the policy and the targets around that, which we have done. We must also take cognizance of the fact that the size of the board and how the board has been put together from day one. It's a journey. The size of the board has got to meet the market cap of the company because otherwise it becomes disproportional. That's one of the things.
The second one is that what we have done, if you look at the last two appointments, when Yodwa came in was before Mr. McKeith. Yodwa, needless to say, is a woman. And when we appointed another director, that was a direct substitution because we had lost a director who passed away. So it was, you want to say it, like for like. So I think it's a journey we are in, and I am confident that it's a matter which the board is seized with. Whenever there is a relook, we also need to make sure that diversity is key and critical. Skills diversity is also key and critical, and that's the journey we are in. Thank you.
Thanks, Chair. Let me take the next two questions listed with the capital allocation question, particularly this trade-off between, and I take it that Ms. Nkugwe loves dividends.
You're one shareholder. I've got other shareholders who also love share buybacks. Just to give our shareholders context, we've got shareholders who are spread between domestic, South Africa, roughly half of our shareholders. We've got shareholders in the United States, roughly a third of our shareholders, and the rest of the world, the balance. The needs of these shareholders tend to differ. The local shareholders, some of them anyway, prefer cash dividends. A large proportion of our shareholders in the United States, for tax reasons, prefer share buybacks as a way of us returning capital. As a board, the way we always think is to ensure that we've got all these tools in our armory to be able to meet this diverse shareholder need. That's why we always consider both cash dividends and share buybacks.
I mean, there's a broader consideration here from a capital allocation point of view. Our primary responsibilities as stewards of your capital is to ensure that we take decisions that enhance shareholder value. When we do that, we consider whether we can invest your capital in projects that will deliver value through the cycle and enhance your returns. If we're unable to find those, either by building mines and/or acquiring those projects, we're quite comfortable to then return that capital to shareholders. We'll then consider one of these two. We've shared with shareholders how we think about share buybacks if the market conditions are right. Clearly, at the moment, the reason why the board found it comfortable was because we saw value in our share. That's the consideration that we do.
Your question is also slightly nuanced about the idea that how do you think about continuing to invest in projects in a volatile market? Commodity markets are, by their very nature, cyclical and sometimes volatile. One of the key issues you always have to consider as a board is to ensure that you do not make rash decisions that destroy value, like stopping and starting projects. I mean, that is the worst thing that you do. That is why you will notice that when the board decides on the balance sheet structure, it is set up to allow us to invest through that cycle so that we do not destroy shareholder value. Now moving on to climate strategy and emissions. Your statement is correct. We, as a board, announced that we would reduce our emissions by 30% by 2030.
You are also right that you actually noticed the progress that we're making. Let me just reiterate that some of the commitments we made are that we'll start building a renewable power supply to our own mines, and we commissioned one at our flagship mine, Zibulo, in the year 2024. We continue to evaluate the next one, which is at Elders, which we committed to do. This will happen before 2030. We said that some of that reduction will happen as a result of mines that will close. Those mines are coming to the end of their life, and they will close. Our commitment as a board is that we will meet our target of 30% by 2030. If you look at the progress we've made thus far, that target is well within our line of sight.
Thanks, Toby. Thank you, CEO. We will now move to the questions on the line. Can we confirm if we do have any questions on the line?
There are currently no questions on the telephone conference line.
Thank you. That is noted. Finally, let's move to questions in the room. Please, can I ask those present wishing to ask a question to raise their hand, and we will send the roving microphone to you. Please introduce yourself before asking your question, starting with your full name and organization that you represent. Thank you.
Good afternoon. My name is Nomsa from All Weather Capital. My question is regarding the remuneration policy, especially given the CEO's departure. Is the board going to relook the MSR policy, noting that they did relook the CFO's MSR last year and increased it from 100% to 1.4?
This is still low compared to other listed companies where the benchmark is three times and two times for the CFO. Just the board's thoughts on that.
Thank you. Chair? Yes.
No, thank you very much. It's Nomsa. Thank you very much, Madam. It's quite interesting the point you're raising because we had, maybe for the first time this year, started the process of governance roadshows. This point did come up. The point did not come up as only everybody saying the same thing. Other people, yes, are pointing to the three times. Others are saying we need to be very careful of tilting the scale too far. What I do know is that we consolidate all these matters, including the matters raised in this AGM and the ones on the roadshow.
Then the chair of there will be fed to the remuneration committee to consider what then is the best journey. Like you say, we've started moving in that particular direction. We have to determine where is the balance which we would like to strike considering the universe of all our shareholders. It is a matter which the board is seized with. Thank you.
Good afternoon to the members of the board, the shareholders, and company secretary. My name is Tim Lloyd. I am attending in capacity as proxy on behalf of Just Share. I have a set of four questions to pose with the board members. With your guidance, two of them relate to interrelated topics around a transition plan and decarbonization, and the third and fourth are around executive remuneration and board capabilities, respectively. Perhaps I could go two by two.
Otherwise, if you prefer, I can rattle off all four, whichever your preference would be. Just take all of them.
We'll take all of the questions at once, please.
Okay. Thank you, Sango. The first question is around a credible transition plan. And just brief context backing the question. Thungela's bioversus bold strategy seeks to ensure that new carbon units are not added to the global footprint through greenfield projects. The reality being that all projects should be reducing their emissions globally along with a Paris-aligned timeframe. Just Share does take the view that acquiring coal facilities to increase Thungela's production is not necessarily aligned with the Paris Agreement.
The proposition is that instead of buying new facilities and extending the life of existing operations, a proposal is for Thungela to prepare and publish a credible 1.5-degree aligned transition plan, which would feature an overarching strategy and also be made up of short, medium to long-term goals for scopes one, two, and three emissions. The question leading from that is, at this stage, does Thungela intend to develop such a plan along those features? If it does, how soon would it expect to be in a position to publish that plan?
Excuse me. The second question is around decarbonization strategies and intended expansion plans. This is in relation to, again, scope one and two emissions, and we've already engaged on the 30% by 2030 target.
The understanding is that's made up of the three levers around energy efficiency and operational improvements, the installation of 19 MW of renewable energy by 2026, and then thirdly, the responsible closure of mines as they reach their end of lives. Just Share has just asked for an understanding around how those levers are apportioned across the 2030. Is it a 33, 33, 33, at least at this stage? Yeah, just how that feeds into the target. Then specifically around the existing renewable energy plan, that 19 MW minimum threshold, there has been an observation that it's not as ambitious as counterparts in the fossil fuel industry in South Africa, listed companies. For example, Exxaro's plans to develop 1.6 gigawatts of RE by 2030.
Along with this benchmarking perspective around potential for greater ambition, there does not appear to yet be a plan as to how the remaining 11 MW of RE will be integrated into Thungela's operations by the end of next year. Just two queries on that score for the board to kindly advise. The first is, by when will Thungela announce its plans to integrate that remaining 11 MW of the 19 MW quantum? Are there any plans at this stage to consider and publish a more ambitious renewable energy goal, considering emergent trends in the industry and globally? The last two questions are slightly briefer. Around climate change capabilities, as it is framed in the ESG report for 2024, it has been reported that six out of the eight board members have sustainability-focused expertise.
It is also been noted that a focus area for Thungela over the course of the next year will be to assess the need to appoint a board member with climate change-specific expertise to enhance and add to the collective skill set at board level. The question in that regard, does Thungela intend to prioritize the appointment of at least one board member with climate change-specific expertise or more, especially considering the increasing climate change commitments and sub-targets that will be in place over the coming years? Finally, and thank you for your patience, just around remuneration. Just Share has been just monitoring the evolution of the KPI metrics, and it seems to have moved from a carbon emission reduction metric that was removed from the long-term incentive structure and replaced with a carbon intensity metric.
That has shifted again this year, where some performance conditions for incentive awards have now moved to revolve around implementation of renewable energy targets. This seems to be working towards this pathway to achieve net zero by 2050, is the understanding. Of course, the practical difficulty with the constant changes in metrics is being able to monitor progress against them. The final question is, please, could Thungela provide further detail just behind the reasons for these various metrics? As you are adopting these metrics at executive remuneration level, what are the plans in place to ensure that they will translate into actual emission reduction results at an operations level? Thank you.
That concludes.
Okay. Thank you very much. Thanks, Tim. I think it is important, firstly, just to say we really appreciate, Tim, you making the time.
We had a bit of a discussion before talking about the legal work you do and all of that. We really appreciate also the consistency of shareholders like Just Share because it is through those contributions that we continue to look at ourselves, look at what the shareholders are saying, look at what other stakeholders are saying. As you will understand, especially as a legally trained mind, that is going to be important for all of those to be balanced at the end of the day. I am sure the CEO will talk a little bit—well, not a little bit—will talk more detail around some of the compliance which we do because at the end of the day, there could be how you feel, how I feel, but let's look at the standards, what I say. Let's also look at the publications which we have given.
I'll just give a high level, not on all of those type of things, and I will just start with the board composition. I want to refer to the point which I think was my response to Nomsa, if I was not mistaken, to say, firstly, a board is, you will know, acts as a collective. It would be dangerous if you have a legal person to think that that board member is a legal advisor to the board because it cannot be. Of course, that expertise is quite important. I think the board acts as a collective. I am not, as a board member, worried that we are really lacking in any way in that particular sphere. All spheres, whether it's finance, it's social, it's transformation, there is no doubt that this organization should be on a journey to strengthen those.
At the time when we have to look at a board member, we have to look at the needs of the company today and tomorrow and look at the current composition, whether it talks to that, looks at our strategic objectives. Understand, of course, that in addition to the board, there is competent management which also deals with those matters. We are not at a stage now when we are currently looking for a board member. As we say, the board has got certain criteria as to when it will do that. There is no doubt about the fact that when that time comes, expertise in areas of ESG will feature. I cannot sit here and say it will be the only issue because we have to look at all the issues.
The other issue, I think I'm touching a little bit on some of the issues on the first two questions which you have said. I do like the fact that you also refer to what other companies do. We have to take a number of issues when we look at that. We can't just talk about what the other companies are doing, even though that becomes a significant consideration. We've got also to talk about what the standards which have been approved are saying. Now, maybe the CEO will talk about how far are we in terms of the compliance around that. I'm not by any means belittling or not taking into account the fact that our peers and other companies, what they are doing. But it's one of the considerations which we will have to look at. CEO, would you like to comment?
I think let me build, firstly, on that comment you've just made because, Tim, we should differentiate between deploying renewables as part of your net zero journey and building a renewable business because those are two very different strategies. We have never announced that we want to pivot away from our business and become a renewable. Let's not mix up those two. We have said very publicly that we will deploy renewables as part of our net zero target and that we achieve. I think the Chairman is right. We can't comment on what other companies choose to do or not do. We think we'll do what is consistent with our own strategy, and that's why we're doing what we're doing.
The question that you're asking about, can you guys give me a breakdown on if you close this mine, how much it will contribute in this one and that one? I think that's why we always—and we found this exceptionally useful, Chair—that we can engage with you guys and provide all that detail plus more if that's what you'd like. I extend that invitation to Just Share that we can sit down and walk you through the details. The only comment I want to make is that in terms of what we've committed to achieve 30% by 2030 in scope one and scope two, the actions that we've actually articulated in our plan will deliver that plus more. We're quite happy to share with you. You raise a very interesting question about publishing a credible plan.
I mean, Tim, I must say that at the onset, that a credible plan sometimes depends on which lens you're using. Because when I talk to some of my shareholders, they actually applaud us for the commitments that we've made sitting where they're sitting. I can also respect that as an activist shareholder with a climate change lens, what we've published may never meet your aspirations. That's fine. Let's continue to have that discussion. We think that in terms of what this board is committed to do transparently and you can measure our progress, it's actually a very credible plan. I mean, how much more credible does it have to be if every year we can come here and stand in front of our shareholders and say, "You remember we said we're going to put renewables? We've already done one. We're doing the next one.
You remember we said we're going to improve our efficiencies, and we can demonstrate that in terms of efficiencies. We have done that. How credible can that plan does it have to be beyond us doing that? I understand where you're coming from. Again, we extend the invitation. Let's sit down together. Let's also understand exactly what you guys are looking for and whether, in fact, that's what we want to do. I need to emphasize that we have a broad range of shareholders. Some of our massive shareholders, our big shareholders, have a very different view about what we should be doing. Our role as stewards of shareholder funds and capital is that we've got to balance all those requirements as we chart our way forward. You capture this by Build Polarity pretty well, actually.
We said we want to grow our business, but we're not going to bring new carbon units into existence. That is why we said if we build, we'll be extending the life of our mines. We're not increasing carbon units. Alternatively, we buy carbon units that are already in existence. Usually, people call this actually just ends on the by Build, but they forget everything else that this board actually committed to. Part of the reason why we want to do this is to manage these assets responsibly, to be transparent. We have said for us, ESG is more than emissions. It's about the best practices we bring to environmental management, to land management, to water management, to biodiversity, and we want to bring all these best practices to these assets.
So when you judge our activities from an ESG point of view, you've got to judge us holistically, not just on a narrow emissions basis. Thanks, Chair.
Okay. Tim, I'm not sure if there's any part which is not covered, but over to you, Toby.
I'd just like to check if there are any more questions in the room. Okay. That concludes the Q&A session. Sango, can I hand over to you?
Thank you, Toby. Electronic voting is now closed. We'll now take a five-minute recess to allow for the tallying of the votes. When we come back, Toby will present the results. We start to count Toby now. Okay. Thank you. Let's please adjourn for five minutes, and we'll be back. Thank you very much.
We ushered in 2024 with a brand new chapter and wrote it with ambition and purpose together.
As our story unfolded, it was clear that this was going to be a year of progress and promise. January set the tone for impact. We launched our flagship education initiative to improve teaching and learning at 45 primary schools and, in the same month, positioned Zibulo for the future with its groundbreaking development. We were also thrilled to be certified by the Top Employer Institute for the third year running. At the SA Call Conference in Cape Town, we announced the establishment of Thungela Marketing International and hit the fairways at our inaugural Customer Golf Day. In February, we made a splash with the launch of our fish breeding facility at the Loskop Dam Nature Reserve, and at the Investing in African Mining Indaba, we shared our insights and successes in the all-important ESG space.
Six global rating agencies assessed our performances in ESG and ranked us highly for transparency. In March, we announced a resilient set of annual results standing tall despite the headwinds that came our way. In April, we shared our new and interactive ESG report. Even in challenging times, our commitment to supporting our communities shone through as we touched the lives of the young and the old while turning entrepreneurial dreams into reality. A ZAR 200 million funding agreement we signed with ABSA in May will fuel the growth of local businesses while the Ngolo Community Partnership Trust handed over its first two projects, a proud moment for us all. Through it all, our greatest strength has been our people. As the journey continued, we learned, we cared, we innovated, and in April and June, we ran the Two Oceans and Comrades marathons.
In August, we celebrated our strength in diversity. In September, we transitioned to a new online BEE reporting process and signed an agreement with the Council for Geoscience Advanced Research into carbon capture, utilization, and storage. Heritage Month also saw the vibrant celebration of a global icon with the opening of a studio for the world-renowned artist, Dr. Esther Mahlangu. In October, we opened the doors at Thungela Marketing International in Dubai. We also went live with our online human rights training, and in November, we sang our values with pride. Added to this, we celebrated 2,500 years of exceptional dedication and wisdom. Above all, we achieved through #ThungelaTogether, taking the Thungela tribe with us on our journey. Zibulo's Prime 3 team started Millionaire season early and was first to reach the magic million-ton mark. Khwezela's Prime 2 team followed suit with its fourth consecutive million.
Zibulo's Prime 7 came in third, delivering another scratch-free million. As we reflect on another year of excellence and agility, we look to the future with renewed passion and purpose, stronger and safer together. #ThungelaTogether.
You've submitted your votes. Here are the results of today's resolutions. Ordinary Resolution Number 1, it's been passed with 99%. Ordinary Resolution 2.1 has been passed by 98%. Ordinary Resolution Number 2.2 has been passed by 91.4%. Ordinary Resolution 2.3 has been passed by 90%. Ordinary Resolution 3.1 has been passed by 99%. Ordinary Resolution 3.2 has also been passed by 99%. Ordinary Resolution 3.3 has been passed by 99%. Ordinary Resolution 4.1 has been passed by 91%. Ordinary Resolution 4.2 has been passed by 98%. Ordinary Resolution 4.3 has been passed by 99%. Ordinary Resolution 5.1 has been passed by 94%. Ordinary Resolution 5.2 has been passed by 61%.
Ordinary Resolution 6 has been passed by 82%. Ordinary Resolution Number 7 has been passed by 99%. Moving on to the Special Resolutions. Special Resolution Number 1 has been passed by 99%. Special Resolution Number 2 has been passed by 99%. Special Resolution Number 3 has also been passed by 99%. I'll hand back over to you, Sango.
Thank you, Toby. Firstly, I would like to take this opportunity to thank the shareholders for their voting and exercising their right in terms of what is required in the AGM. I would also like to acknowledge the fact that Resolution 5.2 did not carry the minimum 75% required that relates to the implementation of the remuneration policy. Therefore, we will be dealing with that matter in terms of what is required in terms of when we disclose all the results.
We will engage, as we are required, with the various shareholders in order to understand the matters of concern from their side and then deal with that matter and process it. As required, it will be disclosed, I think, in the next integrated report. Thank you very much to all the shareholders for their voting. Moving on, we just want to say Thungela is well positioned, therefore, to navigate the evolving global energy landscape. Our focus remains steadfast on safety and building operational resilience whilst executing our strategy. Strengthening our ESG practice and enhancing our disclosures remain at the forefront of our agenda, reflecting our commitment to responsible mining practices. We recognize that our success is built on our people, and we remain committed to developing a diverse and talented workforce that will successfully drive Thungela's strategy into the future.
As we close out our AGM, I would like to thank my fellow directors, board members, for their leadership, commitment, vision over the past 12 months. On behalf of the board, I extend my sincere gratitude to the Thungela Executive Committee and an amazing team of colleagues who have, over the past four years, built the company into a global pure-play producer and exporter of high-quality thermal coal company that we are all proud of today. I wish to extend our profound gratitude to the communities and the stakeholders who play a pivotal role in the success of our business. Our operations are intrinsically woven into the fabric of the communities we serve, and we recognize that our achievements are made possible through the meaningful partnerships and relationships we have. In line with our purpose, we remain committed to responsibly creating value for our stakeholders.
Finally, a heartfelt thank you to you, our shareholders, for the trust which you have placed in our business. Thank you for your attendance this afternoon. As the business of this meeting has been concluded, this meeting is now closed. Please join us for a light lunch. Thank you.