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Glencore shareholder Ivan Glasenberg is reinforcing his long standing bet on South Africa’s energy sector, with the commodities giant committing R6 billion ($328 million) to upgrade Astron Energy’s petroleum refinery in Cape Town.
The investment marks one of the largest private sector commitments in the country in recent years and signals Glencore’s intent to strengthen Astron Energy as a major player across southern Africa. The Cape Town refinery, which can process about 100,000 barrels of petroleum products a day, remains central to that strategy.
As South Africa’s third largest refinery, the facility plays a critical role in the local fuel supply chain at a time when the country faces growing reliance on imported refined products. Industry analysts say the plant has become an economic anchor, generating an estimated R95 billion in revenue for the local economy and supporting more than 50,000 jobs directly and indirectly.
Glencore chief executive Gary Nagle, who was born and educated in South Africa, has repeatedly described the refinery as cash generative. The latest capital injection appears to back that view, with the upgrade expected to extend the life of the facility and improve efficiency and output.
The project features prominently in Nedbank’s Capital Expenditure Project Listing 2025, which tracks major fixed investment plans across the country. The report highlights a rebound in private sector spending, as weak public finances limit the government’s ability to invest at scale.
According to Nedbank, the value of newly announced fixed investment plans rose to R705.6 billion in 2025, with private companies accounting for R382.5 billion. Large commitments from Vodacom and MTN, valued at R85.2 billion and R45 billion respectively, dominate the telecoms sector, while energy projects make up the bulk of other private investments.
Nedbank estimates that about 80 percent of announced projects are energy related, driven by companies seeking reliable power sources and reduced exposure to Eskom’s rising electricity costs. Against that backdrop, Astron Energy’s refinery upgrade stands out as a rare large-scale investment in traditional fuel infrastructure.
Astron Energy has also been steadily expanding its retail presence. Since Glencore acquired Chevron’s South African assets in 2017 for about $1 billion, the company has been rebranding Caltex service stations under the Astron name, bringing its African operations under a single identity. More than 800 petrol stations across South Africa are part of that transition.
While Nagle now leads Glencore, the Astron deal was spearheaded by Glasenberg, the South African born billionaire who built the company into a global commodity trading powerhouse. Raised in Johannesburg and educated at the University of the Witwatersrand, Glasenberg shaped Glencore’s aggressive, trader driven culture and oversaw its expansion into energy, mining and logistics.
Astron Energy’s roots in South Africa stretch back more than a century. Founded in 1911, the business evolved through several identities before becoming Caltex in the 1930s and later Astron Energy. Beyond fuel refining, the company operates a major lubricants plant in Durban, producing up to 60 million litres a year, including brands such as Havoline and Delo.
