Gold producer Pan African Resources has announced the listing of a sustainability-linked instrument under the sustainability segment of the JSE.

Following an oversubscribed bookbuild, Pan African Resources (PAR) Funding Company’s PARS03 notes worth R840-million will be listed under a R5-billion domestic medium term note programme.

The framework under which Pan African and its subsidiaries intend to issue sustainability-linked bond instruments or raise sustainability-linked loan instruments is outlined by the Johannesburg- and London-listed company in a statement of purpose.

In this, it highlights investments in innovation and global best practices that mitigate environmental impact through reclamation that stabilises hazardous waste while releasing land areas for other productive uses.

Pursuing‘beyond compliance’ environmental, social and governance – ESG – is the stated sustainability commitment of the company, headed by CEO Cobus Loots. United Nations Global Compact principles are declared as the guiding lights of its sustainable community development.

Interestingly, mine waste reclamation has created the opportunity to shrink environmental footprint and cut municipal water consumption while creating value.

Payback of Pan African’s latest R2.5-billion Mogale gold tailing retreatment operation on the West Rand is expected in two to three years.

On the clean energy front, a utility-scale renewables plant has been pioneered at Evander, where nearly a third of the energy requirements of the Elikhulu tailings retreatment operation is provided by the sun. Now envisaged at Mogale is a potential 20 MW of renewable power.

The all-in sustaining cost at Mogale is below $1 000/oz amid gold production taking place in a manner that is significantly overshadowing illegal mining, which was formerly prevalent in the area.

Last month, Pan African joined Harmony Gold, DRDGOLD, Gold Fields and AngloGold Ashanti on the Van Eck Gold Miners’ GDX index, a US-managed exchange-traded fund that seeks to replicate the price and yield performance of the New York Stock Exchange’s Arca Gold Miners Index, which is intended to track the overall performance of gold mining companies.

The current holding of this fund, which invests on recognised exchanges, was acquired through the JSE.