SA mining firm Sibanye concludes PPA for 140MW wind farm

South African diversified mining and metals company, Sibanye-Stillwater, last week  announced the conclusion of its fourth renewable energy power purchase agreement (PPA) for an additional 140-megawatt (MW) wind energy project. The project also simultaneously reached financial close.

Dubbed the Umsinde Emoyeni Wind Farm, the facility is set to be located on the border between the Northern Cape Province and the Western Cape Province near Murraysburg, South Africa. 

The wind project will be fully funded by a consortium of South African IPPs, African Clean Energy Developments (ACED), Energy Infrastructure Management Services (EIMS Africa) and Reatile Renewables. Two of the IPPs ACED and EIMS Africa are owned by the African Infrastructure Investment Managers (AIIM) who are funding the project.

AIIM is financing the project via its parent company Old Mutual Alternative Investments (OMAI)’s IDEAS Fund, one of South Africa’s largest domestic infrastructure equity funds. Rand Merchant Bank (RMB) is the sole mandated lead arranger for the project.

Construction for the Umsinde Emoyeni Wind Farm is expected to commence immediately, with commercial operations scheduled for Q4 2026. The project will supply Sibanye-Stillwater’s SA operations utilising the national grid through a secured wheeling agreement with Eskom.

Enabling Sibanye carbon neutrality plans

The project’s PPA and financial close brings the total dedicated capacity of renewable energy projects in construction for Sibanye-Stillwater’s exclusive use to 407MW. The renewable energy projects are also being implemented by EIMS Africa and ACED, and will secure 70% of Sibanye-Stillwater’s long-term energy requirements in South Africa.   

Furthermore, the 407MW of renewable capacity will enable a 24% reduction in Sibanye-Stillwater’s Scope 2 emissions or c. 1,450,000t CO2e per year from 2027, and will materially contribute to alleviating the South African electricity crisis.

“Financial close of the Umsinde Emoyeni wind farm marks another critical step in our journey to carbon neutrality by 2040,” said Sibanye-Stillwater CEO, Neal Froneman.

“The renewable energy secured through our four PPAs will enable a stepped reduction in our carbon footprint, aiming to contribute not only to mitigate the effects of climate change, but also enhancing the sustainability and shared value creation of our SA operations through favourable pricing relative to current supply. We continue to develop and execute energy solutions that contribute to the delivery of our strategy,” Froneman added.   

Sibanye-Stillwater says it will pursue the balance of its 600MW portfolio of renewable energy projects in its journey to carbon neutrality.