Sibanye-Stillwater Finalizes Fourth Renewable Energy Power Purchase Agreement
Johannesburg- and New York-listed Sibanye-Stillwater has finalized its fourth renewable energy power purchase agreement (PPA), marking a significant milestone in its commitment to carbon neutrality by 2040.
The green metals and gold producer has reached financial close on a 140 MW wind energy project, the Umsinde Emoyeni Wind Farm, located near Murraysburg on the border between the Northern Cape and the Western Cape.
Sibanye-Stillwater CEO Neal Froneman emphasized the importance of this development in a release to Mining Weekly, stating that the project represents another crucial step toward achieving carbon neutrality.
Construction of the wind farm is set to commence shortly, with commercial operations expected to begin in the fourth quarter of 2026.
The wind farm will utilize the national grid through a secured wheeling agreement with State power utility Eskom, supplying power to Sibanye’s South Africa operations.
The 20-year PPA will be fully funded by a build, own, and operate project consortium led by African Clean Energy Developments (ACED) and Energy Infrastructure Management Services (EIMS Africa), both platforms of African Infrastructure Investment Managers (AIIM). Reatile Renewables is also a shareholder in the consortium.
AIIM, a division of Old Mutual Alternative Investments, has invested in the project through its IDEAS Fund, a domestic infrastructure equity fund. Rand Merchant Bank serves as the project’s sole mandated lead arranger.
Including this latest agreement, Sibanye’s renewable energy projects under construction now total 407 MW, meeting 70% of the company’s long-term energy requirements in South Africa.
From 2027, this renewable capacity is expected to enable a 24% reduction in Sibanye’s Scope 2 emissions, equating to approximately 1,450,000 tons of carbon dioxide equivalent annually.
The project will also promote socioeconomic development for local communities and meet the requirements of the South African Mining Charter.
Sibanye continues to pursue the remainder of its 600 MW portfolio of renewable energy projects as part of its journey to carbon neutrality.
Froneman highlighted the benefits of these projects, including a reduction in the company’s carbon footprint and enhanced sustainability through favorable pricing relative to current supply.
The multinational mining and metals processing group, with a diverse portfolio of operations, projects, and investments across five continents, is also a significant global recycler of platinum group metals autocatalysts.
Sibanye is one of the world’s largest producers of platinum, palladium, and rhodium, and it also produces iridium, ruthenium, nickel, chrome, copper, and cobalt.
Additionally, the company has diversified into battery metals mining and processing and expanded its presence in the circular economy through recycling and tailings reprocessing globally.
SOURCE:miningweekly.com
