Multinational precious metal mining company Sibanye-Stillwater, led by South African businessman Neal Froneman, has reached a significant milestone in its sustainability journey as it concluded its first power purchase agreement (PPA) and achieved financial close for an 89-megawatt (MW) wind energy project.
The Castle Wind Farm, the largest private wind farm ever constructed in South Africa, will generate clean energy near the town of De Aar in the Northern Cape Province. Under a wheeling agreement with Eskom, this renewable energy will power Sibanye-Stillwater’s operations in South Africa.
According to a statement released by the group, construction of the 89-megawatt (MW) wind energy project is scheduled to commence in June 2023, with commercial operation expected by early 2025.
Froneman, the CEO of Sibanye-Stillwater, expressed his enthusiasm, stating: “This marks our first major step in delivering over 550 MW of our renewable project portfolio and is a significant milestone in our journey to carbon neutrality by 2040.”
Froneman emphasized the positive impact of the project, which not only reduces carbon emissions and mitigates climate change but also brings cost savings on electricity and enhances energy security for Sibanye-Stillwater’s South African operations.
Additionally, it contributes to addressing the electricity challenges faced by South Africa.
Sibanye-Stillwater, known for its operations in South Africa and the Americas, has been a leading primary producer of platinum, palladium, and gold.
Under Froneman’s leadership, the company is actively diversifying its asset portfolio into battery metals mining and processing while increasing its presence in the circular economy through global recycling and tailings reprocessing operations.
Earlier this year, Froneman spearheaded Sibanye-Stillwater’s successful increase of its dollar-denominated revolving credit facility from $600 million to $1 billion.
This move significantly boosted the company’s liquidity, with the facility including an option to expand to $1.2 billion.
