South African miners accelerate renewable energy transition

South Africa’s energy landscape is undergoing a structural shift as the mining sector accelerates its transition toward renewable power to reduce dependence on Eskom and lower operational costs. Major mining companies are increasingly adopting renewable energy to meet decarbonization goals and mitigate the impact of rising electricity tariffs.

Anglo American, through its joint venture Envusa Energy, currently supplies 520 MW of wind and solar capacity, covering approximately 30% of its mining energy consumption. The company aims to reach a 3,000 MW target by 2030. Similarly, Sibanye Stillwater has contracted 835 MW of renewable capacity, with plans to have renewables cover roughly 64% of its total energy demand at South African operations by the end of 2028.

Industry experts note that wind and solar power can be 20% to 30% cheaper than Eskom electricity. This transition is supported by the formalization of electricity wheeling, which allows independent power producers to add electricity to the national grid for consumption by third parties elsewhere. While the grid is currently stable, long-term sustainability depends on the decommissioning of aging coal plants and the successful integration of the approximately 20 gigawatts of new generation projects currently in the pipeline.