What's Happening?
Sibanye-Stillwater has signed a 10-year power purchase agreement with Etana Energy to procure 220 MW of renewable electricity for its operations in South Africa. The agreement, announced in February 2026, involves sourcing power from wind and solar projects, which will be supplied through a wheeling process. This allows the company to use clean energy without building separate power plants at each site. The project is expected to become operational by late 2027 and aims to avoid approximately 648,000 tons of greenhouse gas emissions annually. This initiative supports Sibanye-Stillwater's goal of achieving carbon neutrality by 2040 and contributes over 35% of its current renewable energy target.
Why It's Important?
The agreement marks a significant step in Sibanye-Stillwater's
sustainability efforts, aligning with global trends towards renewable energy adoption in the mining sector. By securing long-term power at agreed rates, the company anticipates reducing electricity costs by 20% to 30% compared to conventional tariffs, providing financial stability and reducing exposure to rising grid power costs. For Etana Energy, this contract represents its third major deal with a mining company, highlighting the growing demand for private renewable energy solutions in South Africa. The partnership not only advances corporate sustainability goals but also contributes to the expansion of renewable energy infrastructure in the region.
What's Next?
As the project progresses towards its operational phase in 2027, Sibanye-Stillwater will focus on integrating the renewable energy supply into its operations. The company will continue to monitor and report on the environmental and financial impacts of the agreement. The success of this initiative may encourage other mining companies to pursue similar renewable energy partnerships, further driving the transition to sustainable energy sources in the industry. Additionally, the project may influence policy discussions on renewable energy incentives and infrastructure development in South Africa.
