Africa-Press – South-Africa. Sibanye-Stillwater has concluded its first power purchase agreement and achieved financial close for an 89MW wind energy project in the Northern Cape, which will be the largest private wind farm constructed in South Africa to date.
The JSE-listed precious metals miner on said on Monday clean energy will be generated by the Castle Wind Farm, located near the town of De Aar, and will supply Sibanye’s South African operations via a wheeling agreement with Eskom.
Construction of the wind farm is expected to commence next month and is scheduled for commercial operation in early 2025.
“This marks our first major step in delivering over 550MW of our renewable project portfolio and is a significant milestone in our journey to carbon neutrality by 2040,” said Sibanye-Stillwater CEO Neal Froneman in a statement. “The project will not only play a pivotal role in reducing carbon emissions and mitigating climate change but also results in cost savings on electricity and provides energy security benefits for Sibanye-Stillwater’s SA operations.”
Froneman said the project will also contribute to addressing the electricity challenges in South Africa.
Under the terms of the 15-year power-purchase agreement, the Castle Wind Farm will be funded, built, and operated by the project consortium.
The consortium consists of African Infrastructure Investment Managers (AIIM), through its renewable energy project development and delivery platform, African Clean Energy Developments and Reatile Renewables. AIIM is a division of Old Mutual Alternative Investments (OMAI) and has invested in the project through its IDEAS Fund, one of South Africa’s largest domestic infrastructure equity funds. Rand Merchant Bank is the sole mandated lead arranger for the project.
Sibanye has frequently said it views climate change as the most pressing issue of its time. As it pursues renewables projects to power its operations, the company is also diversifying its portfolio to include battery metals that will be essential for the global energy transition.
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