Financial close reached on 280MW for Rio Tinto and Sibanye-Stillwater

Sibanye-Stillwater CEO Neal Froneman. File photo

Sibanye-Stillwater CEO Neal Froneman. File photo

Published Jun 12, 2024


African Infrastructure Investment Managers (AIIM), a division of Old Mutual Alternative Investments, has reached financial close on the 140MW Khangela and 140MW Umsinde Emoyeni wind farms to supply renewable energy to the operations of Rio Tinto’s Richards Bay Minerals (RBM) and Sibanye-Stillwater via wheeling agreements.

AIIM said in a statement yesterday that the projects had been led and developed by AIIM’s renewable energy project development platform ACED. Reatile Renewables had co-invested in the projects alongside the AIIM-managed IDEAS Fund, one of South Africa’s largest domestic infrastructure equity funds.

Rand Merchant Bank, a division of FirstRand Bank, is the sole mandated lead arranger for both projects, and operations and maintenance services for the projects once built will be provided by AIIM’s in-house operator, EIMS.

James Cumming, the general manager of ACED, said: “We are immensely proud to have achieved financial close and construction commencement on another two private renewables projects in partnership with some of South Africa’s key mining houses. Not only will the projects provide Rio’s Richards Bay Minerals and Sibanye-Stillwater with clean energy for their operations, but they will also create jobs and development funding streams to support and grow local communities living adjacent to the projects.”

The deal entails the sale of power to the mining houses through 20-year Power Purchase Agreements. Khangela and Umsinde Emoyeni wind farms are situated near Murraysburg in the Western Cape, with a small portion of the proposed development site falling into the Northern Cape.

“The addition of increased power generation capacity to the national grid will contribute to offsetting the power deficit currently being experienced in the country,” said Cumming.

Sibanye-Stillwater CEO Neal Froneman said: “Financial close of the Umsinde Emoyeni wind farm marks another critical step in our journey to carbon neutrality by 2040.

“The renewable energy secured through our four PPAs will enable a stepped reduction in our carbon footprint, aiming to contribute not only to mitigate the effects of climate change, but also enhancing the sustainability and shared value creation of our SA operations through favourable pricing relative to current supply. We continue to develop and execute energy solutions that contribute to the delivery of our strategy.”