Sibanye-Stillwater, a JSE-listed precious metals miner, recently announced a groundbreaking agreement for an 89 MW wind energy project in South Africa’s Northern Cape. When completed, this project, known as the Castle Wind Farm, will be the largest private wind farm in the country. The company has reached a financial close and signed its first power purchase agreement, which is a significant step toward its goal of carbon neutrality by 2040.
The Castle Wind Farm, located near the town of De Aar, will generate clean energy to power Sibanye’s South African operations. This will be possible thanks to a wheeling agreement with Eskom, the country’s public electricity utility. The wind farm’s construction is set to begin next month, and it is expected to be commercially operational by early 2025.
CEO Neal Froneman expressed his excitement for this landmark achievement, stating that the project will not only contribute to reducing carbon emissions and addressing climate change but will also result in electricity cost savings and energy security benefits for Sibanye-Stillwater’s South African operations. Froneman also emphasized the project’s importance in addressing South Africa’s overall electricity challenges.
A consortium of project partners will fund, build, and operate the Castle Wind Farm. This consortium is formed by African Infrastructure Investment Managers (AIIM) in collaboration with African Clean Energy Developments and Reatile Renewables. AIIM, a division of Old Mutual Alternative Investments (OMAI), has invested in the project through its IDEAS Fund, which is one of South Africa’s largest domestic infrastructure equity funds. Rand Merchant Bank has been designated as the project’s sole mandated lead arranger.
Sibanye-Stillwater has been actively pursuing renewable energy projects as part of its commitment to addressing climate change. Simultaneously, the company diversifies its portfolio to include battery metals, which will be critical in the global energy transition. By embracing renewable energy and sustainable practices, Sibanye-Stillwater is positioning itself as a leader in the transition to a cleaner and more sustainable future.
The conclusion of the power purchase agreement and the achievement of financial close for the Castle Wind Farm marks a significant step forward for Sibanye-Stillwater’s renewable project portfolio. The company is well on its way to meeting its long-term sustainability goals, with over 550 MW of renewable projects in the pipeline. Sibanye-Stillwater is not only helping to clean up the environment by investing in renewable energy and reducing its carbon footprint, but it is also setting an example for other mining companies.
