Renewables project to power miner's KwaZulu-Natal operations

Mineral sands miner Richards Bay Minerals (RBM), a division of diversified miner Rio Tinto, is set to receive 140 MW of renewable energy from the Khangela Emoyeni Wind Farm, in South Africa’s Western and Northern Cape provinces, through a power purchase agreement (PPA).

The project is expected to support RBM’s operations in KwaZulu-Natal and reduce RBM’s yearly carbon emissions by 20%, which aligns with Rio Tinto’s broader commitment to reducing Scope 1 and 2 greenhouse-gas emissions by 50% by 2030 and achieving net zero by 2050.

It also marks a significant step towards RBM’s commitment to sustainable energy, with construction of the wind farm slated to have started in June 2024 and commercial operations expected by September 2026.

The PPA involves several key stakeholders, namely environment, renewables and natural resources company African Clean Energy Developments (ACED) – which owns the Khangela Emoyeni Wind Farm – which will develop the project and be supported by investment holding company Reatile Group.

Additionally, the IDEAS Fund, managed by financial institution African Infrastructure Investment Managers (AIIM), asset management company EIMS Africa, and Rand Merchant Bank, are also involved.

The 140 MW generated will be transported to RBM’s operations in Richards Bay, KwaZulu-Natal, using State-owned Eskom’s grid under a wheeling agreement.

Wheeling allows energy to be transmitted from the power producer to the end-user using existing distribution or transmission networks.

The agreement marks RBM’s second renewable-energy project, following the Bolobedu solar PV project in the Limpopo province.

Combined, these projects will meet about 42% of RBM’s power requirements, significantly alleviating the load on the national grid.

Upon completion, the Khangela Emoyeni Wind Farm is anticipated to generate around 460 GWh of renewable energy each year.

When operating at full capacity, RBM’s power consumption can reach up to 400 MW, making it one of South Africa’s largest electricity users, RBM tells Engineering News.

“The Khangela Emoyeni Wind Farm project is not just a leap towards sustainable energy but also promises substantial socioeconomic benefits for local communities,” RBM adds, highlighting that during both the construction and operational phases, the project will create local employment opportunities, foster skills development, and support local procurement.

The project has committed to investing a percentage of its net profit after tax into socioeconomic development initiatives to benefit host communities.

ACED, headquartered in Cape Town, has been instrumental in renewable-energy development since 2008, successfully developing 1.7 GW of renewable-energy projects and having 4.5 GW each of wind and solar PV projects in development.

Its involvement underscores the project’s robust foundation and potential for success, RBM highlights, adding that engagement with local stakeholders is managed by ACED, ensuring that the project maintains a positive relationship with the communities it impacts.

The project will also adhere to rigorous environmental impact assessments to mitigate risks to wildlife, habitats, and public health.

Further, RBM is also exploring additional renewable-energy projects and demand side management initiatives to further its decarbonisation goals.

This includes replacing existing systems with more energy-efficient technology, optimising processes for maximum efficiency, and promoting energy awareness among employees.