What's Happening?
Sibanye-Stillwater has entered into a 10-year power purchase agreement with Etana Energy to procure 220 MW of renewable electricity for its operations in South Africa. This agreement, announced in February 2026, involves sourcing power from wind and solar projects, which will be fed into the national grid and transmitted to the company's mining sites. The initiative is expected to become operational by late 2027 and aims to avoid approximately 648,000 tons of greenhouse gas emissions annually. This move is part of Sibanye-Stillwater's strategy to achieve carbon neutrality by 2040, contributing over 35% to its renewable energy goals.
Why It's Important?
The agreement marks a significant step in Sibanye-Stillwater's sustainability efforts, highlighting a growing trend
in the mining sector towards renewable energy adoption. By securing long-term power at fixed rates, the company anticipates reducing electricity costs by 20% to 30%, providing financial stability and mitigating exposure to rising grid power costs. This shift not only supports environmental goals but also enhances the company's competitive edge by ensuring energy price stability. For Etana Energy, this contract represents its third major deal with a mining company, underscoring the increasing demand for private renewable energy solutions in South Africa.
What's Next?
As the project progresses towards its 2027 operational target, Sibanye-Stillwater will likely focus on integrating this renewable energy supply into its broader operations. The success of this agreement could encourage other mining companies to pursue similar renewable energy partnerships, potentially accelerating the transition to sustainable energy sources within the industry. Additionally, the expansion of renewable infrastructure in South Africa may receive a boost, contributing to the country's overall energy security and climate commitments.
