Richards Bay Minerals Inks Agreement with Khangela Emoyeni for 140 MW of Additional Renewable Energy

Richards Bay Minerals (RBM) has inked a renewable power purchase agreement (PPA) with Khangela Emoyeni Wind Farm (Pty) Ltd. Through this agreement, RBM will obtain 140 MW of wind energy from a new wind farm located in the Western and Northern Cape Province. This initiative is projected to reduce RBM’s annual carbon emissions by 20%.

In 2022, RBM signed a similar agreement with Voltalia for the Bolobedu Solar PV plant in Limpopo. This ongoing project is expected to meet 17% of RBM’s power consumption, generating up to 300 GWh of renewable energy annually.

The 20-year PPA involves African Clean Energy Developments (Pty) Ltd (ACED), The IDEAS Fund (managed by African Infrastructure Investment Managers), investment holding company Reatile Group, and Rand Merchant Bank. EIMS Africa will oversee asset management for the project. Once completed, the Khangela Emoyeni Wind Farm is anticipated to generate approximately 460 GWh of renewable energy annually. Through a wheeling agreement with Eskom, this energy will support RBM’s operations in Richards Bay, KwaZulu-Natal. With an export capacity of 140 MW, the project is expected to reach commercial operation within 28 months.

The Khangela Emoyeni Wind and Bolobedu Solar projects will provide approximately 42% of RBM’s current energy requirements. These projects will also create opportunities for job creation, skills development, and knowledge transfer within the local communities around the project sites during both the construction and operational phases.

Werner Duvenhage, Managing Director Richards Bay Minerals and Rio Tinto Iron and Titanium African Operations said, “As a world leading mineral sands operation, we are determined to find better ways to produce the materials the world needs and decarbonizing our operations is one of them. Rio Tinto has committed to reduce Scope 1 and 2 emissions by 50% by 2030 and achieve net zero by 2050. The Khangela Emoyeni Wind Farm has the potential to reduce RBM’s annual carbon emissions by 20% and reduce our existing reliance on traditional energy sources by 26%.”

James Cumming, General Manager at ACED added, “We are immensely proud to have achieved financial close and commenced construction on Khangela Emoyeni Wind Farm, with Rio Tinto’s Richards Bay Minerals. Not only will it provide RBM with clean energy for their operations, but it will also help alleviate South Africa’s power crisis.”