Richards Bay Minerals (RBM), a leading South African mineral sands producer and subsidiary of Rio Tinto, has signed a 20-year renewable power purchase agreement (PPA) with Khangela Emoyeni Wind Farm (Pty) Ltd. This strategic partnership will provide RBM with 140 megawatts (MW) of wind energy from a forthcoming wind farm spanning the Western and Northern Cape provinces, marking a significant step in reducing its carbon footprint by 20% annually.
The project is being developed by a consortium that includes African Clean Energy Developments (Pty) Ltd (ACED), The IDEAS Fund (managed by African Infrastructure Investment Managers), Reatile Group, and Rand Merchant Bank. EIMS Africa has been appointed to oversee the asset management of the project, which is expected to generate approximately 460 gigawatt-hours (GWh) of renewable energy per year. Through a wheeling agreement with Eskom, South Africa’s state-owned power utility, this energy will be transmitted to RBM’s operations in Richards Bay, KwaZulu-Natal. The wind farm, with an export capacity of 140 MW, is scheduled to commence commercial operations within 28 months of the agreement’s signing.
Werner Duvenhage, Managing Director of Richards Bay Minerals and Rio Tinto Iron and Titanium African Operations, underscored the significance of the deal:
“As a world-leading mineral sands operation, we are determined to find better ways to produce the materials the world needs, and decarbonising our operations is one of them. Rio Tinto has committed to reducing Scope 1 and 2 emissions by 50% by 2030 and achieving 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%.”
This agreement builds upon RBM’s previous commitment to renewable energy. In 2022, RBM signed a similar PPA with Voltalia, a French renewable energy company, to develop the Bolobedu Solar Power Station in Limpopo province. This solar project, currently under construction, is designed to supply 17% of RBM’s power needs by generating up to 300 GWh of renewable energy annually.
The Bolobedu Solar Power Station, with a capacity of 148 MW, is being developed by a Voltalia-led consortium that includes local Black Economic Empowerment (BEE) partners. The project is expected to be operational by 2024, further bolstering RBM’s renewable energy portfolio and supporting South Africa’s transition to sustainable energy.
These initiatives form part of Rio Tinto’s broader strategy to integrate renewable energy into its global operations, thereby reducing its carbon footprint and advancing environmental stewardship. By investing in projects such as the Khangela Emoyeni Wind Farm and the Bolobedu Solar Power Station, RBM not only moves closer to its sustainability targets but also contributes to South Africa’s renewable energy landscape and economic growth.
The mining sector, known for its high energy consumption, has traditionally relied on fossil fuels, making the transition to renewable energy both an environmental and economic imperative. In addition to mitigating carbon emissions, such initiatives enhance energy security, reduce operational costs, and generate employment during both construction and operational phases, benefiting local communities.
RBM’s approach to sustainable energy underscores a commitment to inclusive growth, incorporating local partners and BEE stakeholders to ensure that the economic benefits extend beyond corporate interests. By prioritising local participation, the company fosters social equity and economic empowerment in the communities surrounding its operations.
The renewable energy transition at RBM, exemplified by the latest wind and solar agreements, aligns with Rio Tinto’s global decarbonisation agenda. These projects not only serve as a model for integrating renewable energy into industrial operations but also signal the increasing viability of large-scale sustainable energy solutions in Africa’s mining industry.
