South African mining companies are stepping up investment in renewable energy to diversify supply, reduce costs and meet decarbonization targets, marking a shift after decades of dependence on state utility Eskom and its ageing coal-fired fleet, Reuters reported on August 26.

South Africa still generates more than 80% of its power from coal, with renewables accounting for only about 10% of the energy mix. Anglo American and Sibanye-Stillwater are among the firms cutting reliance on the national grid, though they said Eskom-supplied baseload power would remain part of the energy equation for years to come even as renewable usage grows.

Anglo formed a joint venture with France's state utility EDF in 2022 to supply renewable power to its mining units. Envusa Energy, the venture, currently generates 520 MW from wind and solar, covering about 30% of Anglo mines' consumption, with a project pipeline of 1.5 GW and ambitions to reach 3 GW by 2030.

Wind and solar are 20% to 30% cheaper than grid power, Envusa CEO Nicole Mason said, adding that the company's near-term focus is on strong wind projects and behind-the-meter solar-plus-battery installations.

Sibanye opted to purchase renewable power through supply deals rather than owning generation assets, contracting 835 MW so far, with 164 MW operational. CEO Richard Stewart said about 64% of South African operations' energy demand should come from renewables by end-2028.

Coal producer Exxaro Resources is pursuing growth through renewables subsidiary Cennergi, which operates 297 MW and has a 593 MW near-term pipeline, targeting 1.6 GW by 2030. A 68-MW solar plant has cut flagship Grootegeluk mine's grid reliance by 30%, saving 100 million rand ($6.28 million) annually and reducing scope 2 emissions by 22%.

Thungela Resources is developing a coal-bed methane project in Limpopo province, with about 19 wells sunk and gas extraction beginning to fuel a generator at one site. CFO Deon Smith said fully functional wells could save 30-40 million rand annually on Eskom bills, representing about 6% to 7% of total utility costs. The company aims eventually to develop a commercial LNG business, with the timeline dependent on internal use.