A Chinese company has formed an alliance to build a solar energy station to operate mines in South Africa and is affiliated with the African Rainbow Minerals company. The company recently announced the suspension of expansions in other projects, due to the sharp decline in global raw material prices and the decline in demand from Beijing in particular.

The alliance is led by Trina Solar, which is listed on the Shanghai Stock Exchange. The alliance consists of Sola, a business development company, and WBHO, a local construction company. This March witnessed a decline in net profits during the first half of the fiscal year by 43%. This comes as a result of the decline in platinum prices and the decision to postpone the expansion of the Bocconi mine.

Solar is considered one of the world's largest companies in the field of solar energy, clean energy systems, research and development, in addition to the production and sale of photovoltaic energy panel units. The company announced the formation of an alliance in order to launch the "Mirak 1" solar energy station project in order to operate mines in South Africa. The company is affiliated with "African Rainbow Solar Panels", the company is supplying the project with approximately 205.16 thousand advanced "Vertex" solar panels.

The project is expected to begin work and supply mines in South Africa by the end of the current year 2024. The project is affiliated with a leading company in mining activity, and the regional director of Trina Solar stated that the solar energy project will provide 135 megawatts.

The project is considered the first activity of the Chinese company in the field of utilities in South Africa. March 8, 2024 witnessed a decline in the company’s profits. It reached 2.96 billion rand in the 6 months ending at the end of December, compared to 5.17 billion rand in the first 6 months of 2023.

The company confirmed that the reason for the decline in profits was due to the decline in the prices of both platinum and thermal coal. The company decided to reduce dividends to 6 rand per share compared to 14 rand in the coming period. During the year 2022, the company purchased the Bocconi mine from the Anglo-American company “Platinum and Analatsa Resources” for the purpose of Expansive operations.

The mine returned to work in November after stopping in 2017 due to the previous owners carrying out maintenance operations with the aim of increasing production.

Mines in South Africa suspended work on other projects and reduced production, and the company conducted a feasibility study to obtain bank financing aimed at expanding in Bocconi. Because they stopped as a result of the sharp drop in prices, which fell by 42% and 70%, respectively, and the company maintains its cash liquidity and works with installed capacity or increases it with the existing infrastructure. It amounts to about 60 thousand metric tons of crude per month.