Impala Platinum (Implats) announced on Monday that it had signed an agreement with Discovery Green to provide its Springs refinery operation — Impala Refineries — with 90% of its energy from renewable sources.
South Africa’s mining companies are scrambling to slash CO2 emissions to retain access to key markets such as the European Union, which are erecting green tariffs and other regulatory walls as part of a wider decarbonisation drive in response to climate change challenges.
South Africa’s mining sector is also keen to reduce its exposure to Eskom’s escalating tariff rates, which threaten to make many shafts economically unviable.
“The strategic renewable electricity contract will significantly reduce Impala Refineries’ Scope 2 greenhouse gas (GHG) emissions — by more than 852,000 tonnes of CO2e over the initial five-year period of the power purchase agreement (PPA) — and yield cost savings,” said Implats. “Scope 2 emissions” are indirect GHG emissions arising from the purchase of electricity, heating and cooling.
Platinum group metals (PGM) producers such as Implats must also strive to contain costs in the face of a roller coaster commodity cycle. PGM prices are currently depressed.
“In a cyclical commodities price environment, agreements such as this PPA are a significant lever in our ability to control input costs to ensure long-term business sustainability,” said Implats CEO Nico Muller.
Refineries are very power intensive and reducing their mounting electricity costs while greening their energy supplies are crucial measures to arrest South Africa’s spiral of deindustrialisation and attract foreign investment.
Eskom may finally be functional again, having passed the 300-day mark without having to resort to the rotational nationwide power cuts known as “load shedding”. But its surging tariffs and heavy reliance on coal are big turnoffs to investors.
Implats’ new PPA will kick off in 2026 with the delivery of 130,000MW of renewable energy per year to Impala Refineries.
The Minerals Council SA estimates that South Africa’s mining sector has at least 7.5GW of renewable energy projects in various stages of development. DM
Business Maverick
Implats signs renewable energy deal to supply 90% of power to its Springs refinery
Refineries are very power-intensive and reducing their mounting electricity costs while greening their energy supplies are crucial measures to arrest South Africa’s spiral of deindustrialisation and attract foreign investment.
