JOHANNESBURG (miningweekly.com) – A targeted 600 MW pipeline of solar and wind projects has been developed by platinum group metals (PGMs) and gold mining company Sibanye-Stillwater which, combined with other energy management initiatives, will displace 30% of current Eskom supply with low-cost renewable energy by 2027.

The renewable-energy programme of the Johannesburg- and New York-listed company is a key lever for decarbonisation, given that 92% of group emissions originate from the power utility Eskom.

On 1 September, members of Sibanye-Stillwater and the Castle consortium celebrated commercial operation of the Castle wind farm project since the end of March.

The Castle project has already harnessed gains by generating 56 GWh energy, avoiding 57 000 t CO₂e emissions and saving R22-million for the South Africa region up to June 30 since the start of commercial operation at the end of March.

Progress towards the overall 600 MW target has been made through the construction of three wind and one solar project totalling 407 MW of generation capacity that is expected to be in commercial operation by end of 2026.

The four projects include the 89-MW-capacity Castle Wind Farm, the 103-MW-capacity Witberg Wind Farm the 140-MW-capacity Umsinde Wind Farm, and the 75-MW-capacity Springbok solar PV project.

The renewable-energy projects are being developed by independent power producers (IPPs) with Sibanye-Stillwater contracted to secure the offtake of the generated energy.

These projects are forecast to reduce Sibanye-Stillwater's annual emissions by 1.5-million tonnes of CO₂e

The cost of renewable energy is estimated to be at a 15% to 30% discount to Eskom tariffs, escalating at CPI.

Located near De Aar in the Northern Cape, Castle is a facility dedicated to supplying renewable energy to Sibanye-Stillwater’s South African operations through a wheeling agreement with Eskom.

Each of Castle's 16 wind turbines has the capacity to generate 6 MW of electricity in optimal conditions and each turbine stands 100 m from the ground to the centre of the hub height; the total height from the blade tip is 183 m. 

Other benefits from Castle, which is said to be the largest current private-offtake wind farm in operation in South Africa, include 0.6% of revenue derived from the consortium managing the wind farm that will be invested in local community education, health, social-welfare and skills development programmes and initiatives.

“Through the development of large-scale solar and wind projects and innovative energy solutions, we are actively reducing our energy cost, reducing our emissions and strengthening energy security for the South Africa region.

“With this robust pipeline of projects in development, our 600 MW target will drive tangible progress toward a more sustainable and resilient energy future for the group,” Sibanye-Stillwater CEO Neal Froneman stated in a release to Mining Weekly on Tuesday, September 30, his last day as CEO of Sibanye-Stillwater, after more than 12 years in office, which began in 2013 with three gold mines.

Under Froneman's leadership, Sibanye-Stillwater expanded from gold into PGMs, battery metals, increased tailings reprocessing, and recycling.

Froneman today hands over to CEO-designate Richard Stewart, Sibanye-Stillwater's chief regional officer: Southern Africa since 2022, subsequent to being group COO from 2020. Prior to being COO, Stewart, who has a PhD in geology, was Sibanye-Stillwater's EVP business development.

Sibanye-Stillwater is committed to contributing to a global solution to climate change by proactively managing its carbon footprint as well as delivering those commodities needed to mitigate carbon emissions.

The multinational mining and metals processing group is a major producer of platinum, palladium, and rhodium, a top-tier gold producer and refines iridium and ruthenium, nickel, chrome, copper and cobalt. It has also diversified into battery metals mining and processing and has increased its presence in the circular economy by growing its recycling and tailings reprocessing exposure globally.

The Castle consortium was led by Anthem, a renewables IPP, and Reatile Renewables as shareholders.

Anthem is owned by the African Infrastructure Investment Managers (AIIM) IDEAS Fund, the Mahlako Energy Fund and Norfund. AIIM is a division of Old Mutual Alternative Investments. Project debt was raised by Rand Merchant Bank.

The Castle project connects to the national grid through the Hydra main transmission substation.

A 15-year power purchase agreement has been signed with Sibanye Energy for the supply of 89 MW of wind powered renewable energy for Sibanye-Stilwater’s mining operations, through a wheeling arrangement with Eskom.