United Arab Emirates (UAE) diversified natural resources company International Resources Holding (IRH) has signed a memorandum of understanding (MoU) with South Africa's State-owned Public Investment Corporation (PIC) to collaborate on unlocking value across the mining, green energy and transport and logistics sectors in South Africa.

Under the terms of the MoU, IRH has committed to deploy its technical and financial expertise to boost economic growth, job creation and sustainable development across South Africa for the mutual benefit of IRH and the PIC.

The collaboration seeks to optimise mining opportunities by bringing underperforming and undeveloped mining assets to full production capacity by applying best practices in mining operations, including advanced technologies and innovative methodologies.

The IRH and PIC will work to unlock the full potential of these assets, ensuring they contribute effectively to the economic objectives of all stakeholders involved.

In green energy, the initiative will support South Africa's commitment to reduce greenhouse-gas emissions and transition towards sustainable energy sources, designed to offset the energy production capacity of the coal-fired thermal plants scheduled to be decommissioned.

In transport and logistics infrastructure, the collaboration aims to increase export capacity by addressing bottlenecks in key mining corridors leading to the Richards Bay, Saldanha and Durban ports. This enhancement is expected to improve the efficiency of transport and increase South Africa’s export capacity.

Additionally, a geoscience company will be established to conduct geological surveys and research using AI and data analytics to identify and assess new mining opportunities.

“[This agreement] 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.

“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,” IRH CEO Ali Rashdi said on September 30.

PIC chief investment officer Kabelo Rikhotso added that he believed the MoU would positively contribute to providing solutions for existing constraints to economic growth, job creation and sustainable development in South Africa.

“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. IRH has shown its value and technological capabilities in Zambia with the extraordinary turnaround of the Mopani Copper Mines. We look forward to moving this MoU forward to definitive agreements,” he said.

IRH owns a 51% stake in Mopani Copper Mines, acquired earlier in the year. The company’s vision is to transform Mopani into one of the most productive green copper mines globally, using advanced technologies, including AI.

The goal is to increase copper output from 60 000 t to 200 000 t over the next three years, while simultaneously decarbonising the project.

The introduction and implementation of internet of things devices, AI, and an improved telecommunication network is expected to enhance productivity, efficiencies, and safety across Mopani’s operational footprint.

Moreover, improved data collection enabled by advanced technology is expected to lead to more informed decision-making and optimised operations. IRH’s technological upgrades are expected to contribute to Zambia’s goal of reaching three-million tonnes a year of copper production.