Sibanye-Stillwater has signed a ten-year power purchase agreement with Etana Energy to secure renewable electricity for its mining operations in South Africa. The agreement marks a major step in the company’s plan to reduce carbon emissions and move away from fossil fuel-based power.
Under the deal, Etana Energy will supply around 600 gigawatt-hours of renewable electricity each year. This is equal to about 220 megawatts of power capacity. The electricity will come from a mix of solar and wind energy projects. The supply is expected to begin in late 2027.
The power will be delivered through a process known as wheeling. In this system, electricity generated from renewable projects is fed into the national grid and then transmitted to Sibanye-Stillwater’s mining sites across the country. This allows the company to use clean energy without building generation facilities directly at each mine.
The agreement supports Sibanye-Stillwater’s long-term environmental goals. The company has set a target to achieve carbon neutrality by 2040. With this renewable energy supply, it expects to reduce greenhouse gas emissions by about 648,000 tons every year starting from 2028. This reduction will play an important role in lowering the company’s overall carbon footprint.
Apart from environmental benefits, the agreement also provides financial advantages. Renewable power under a long-term contract is expected to offer more stable and lower electricity costs compared to traditional power sources. With rising energy prices and supply challenges in South Africa, the deal provides cost certainty and energy security for the mining company.
Executives from both companies have said the agreement was designed with flexibility in mind. It will work alongside Sibanye-Stillwater’s existing power contracts and align with the lifespan of its mining operations. For Etana Energy, this contract represents its third major agreement with a large mining company. The company is backed by international investors, including Chariot Limited.
The deal reflects a broader shift in South Africa’s industrial sector. Large energy users are increasingly securing renewable energy directly through private agreements rather than depending only on traditional utilities. Such long-term contracts help companies stabilize operations while also supporting the growth of renewable energy projects in the country.
Overall, the partnership between Sibanye-Stillwater and Etana Energy highlights the growing role of renewable energy in the mining sector and signals continued investment in South Africa’s clean energy transition.
