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Rio Tinto’s Richards Bay Minerals signs major wind power deal

11 Jun, 2024
Rio Tinto's Richards Bay Minerals signs major wind power deal



Richards Bay Minerals (RBM) has taken a significant step towards decarbonising its operations by signing a 20-year renewable power purchase agreement (PPA) with Khangela Emoyeni Wind Farm (Pty) Ltd.

The agreement secures 140MW of wind energy from a new wind farm situated in the Western and Northern Cape Province in South Africa.

The Khangela Emoyeni Wind Farm project, with an export capacity of 140MW, is expected to reach commercial operation within 28 months, contributing to South Africa’s renewable energy goals and economic development.

Once constructed, the wind farm is anticipated to produce approximately 460GWh of renewable energy annually, which will be wheeled through Eskom’s grid to power RBM’s operations. It is expected to reduce RBM’s annual carbon emissions by 20 per cent.

Werner Duvenhage, Managing Director of 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 decarbonising our operations is one of them.

“Rio Tinto has committed to reducing Scope 1 and 2 emissions by 50 per cent 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 per cent and reduce our existing reliance on traditional energy sources by 26 per cent.”

This wind power agreement follows RBM’s previous deal in 2022 for the Bolobedu Solar PV plant in Limpopo with Voltalia.

The Bolobedu solar project, currently in progress, is anticipated to meet 17 per cent of RBM’s power consumption by generating up to 300GWh of renewable energy per annum.

Combined, the Khangela Emoyeni Wind and Bolobedu Solar projects will supply approximately 42 per cent of RBM’s existing energy needs, presenting opportunities for job creation, skills development, and knowledge transfer within local communities surrounding the project sites during both construction and operational phases.

The parties involved in the Khangela Emoyeni Wind Farm project include 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.

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