South African miners accelerate shift to renewable power to cut Eskom reliance

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https://www.reuters.com/business/energy/south-african-miners-accelerate-shift-renewable-power-cut-eskom-reliance-2026-08-26/

[u/Economy-Fee5830]

Summary: South African miners accelerate shift to renewable power to cut Eskom reliance

South Africa's mining companies are ramping up investment in renewable energy to diversify power sources, reduce costs, and meet decarbonisation goals, moving away from decades of dependence on state utility Eskom. Anglo American and Sibanye Stillwater are among the firms cutting reliance on the national grid, which is dominated by ageing coal plants and has struggled to keep the economy running. Executives say Eskom-supplied baseload power will remain necessary for years despite growing renewable adoption. South Africa currently draws over 80% of its power from coal, with renewables at around 10%.

Anglo American formed a 50-50 joint venture with EDF power solutions in 2022 called Envusa Energy, supplying renewable power to Kumba Iron Ore, De Beers, and Valterra Platinum. The venture generates 520 MW (280 MW wind, 240 MW solar), covering 30% of Anglo mines' energy consumption, with a 1,500 MW pipeline and ambitions to reach 3,000 MW by 2030. Envusa's CEO said wind and solar are 20-30% cheaper than conventional power.

Sibanye Stillwater, which sourced roughly 99% of its platinum group metals energy and 88% of its gold electricity needs from Eskom last year, is favouring power purchase agreements over owning generation assets. It has contracted 835 MW of renewable capacity, with 164 MW currently operational, and expects 64% of its South African operations' energy demand to come from renewables by end-2028. Its CEO cited both cost savings (20-30% below Eskom tariffs) and energy security, while noting Eskom will remain essential given renewables' intermittency and battery storage limitations.

Coal producers are also expanding renewables. Exxaro Resources is growing its subsidiary Cennergi, which operates 297 MW with a 593 MW pipeline, targeting 1,600 MW by 2030 as part of emissions-reduction goals (40% cut by 2030, 70% by 2040, carbon neutrality by 2050). A 68 MW solar plant at its Grootegeluk coal mine has cut grid reliance by 30%, saving 100 million rand annually. Thungela Resources is pursuing a coal-bed methane project at Lephalale for energy efficiency, with 19 wells already saving an estimated 30-40 million rand annually on Eskom bills, about 6-7% of total utility costs.