Discovery Green, the renewable energy business of Discovery Limited, and Glencore Operations South Africa, part of a global diversified natural resources company, said on Monday they had signed a 20-year renewable energy supply agreement. The deal will replace the majority of the electricity consumption at four of Glencore’s major mining operations with renewable energy.
Starting in 2027, Discovery Green will supply renewable energy to the Goedgevonden, Tweefontein, and iMpunzi mine complexes near eMalahleni, in the Nkangala District. The electricity consumption across these operations is estimated to exceed 290 gigawatt-hours (GWh) per year.
This long-term agreement is expected to substantially reduce the operation’s direct carbon emissions, while providing Glencore with stable, predictable electricity costs.
“We are excited to support Glencore, a major player in South Africa’s economy, on their journey towards renewable energy,” said Andre Nepgen, the head of Discovery Green. “This deal is one of the largest renewable energy trading agreements in the country and the first solution we’ve co-designed with an offtaker to dynamically adjust supply as their strategy and operations evolve. It’s a new model for the mining sector that can be replicated across other industries – offering cost savings, long-term price certainty and a clear path towards a low-carbon future.”
Glencore’s commitment to sustainability is central to this partnership. This agreement supports Glencore’s broader Climate Action Transition Plan, which includes expanding its renewable energy portfolio.
“This partnership with Discovery Green is a key part of our strategy to decarbonise our South African operations while maintaining energy security,” said Murray Houston, the chief executive of Glencore Coal South Africa. “It reflects our commitment to responsible mining, long-term sustainability, and supporting South Africa’s energy transition.”
Under the agreement, energy will be generated from Discovery Green’s growing base of contracted large-scale wind and solar farms and delivered to Glencore’s mining operations through the national grid.
“South Africa has some of the best renewable energy resources in the world, and this agreement shows how we can harness them to deliver clean, reliable power at scale,” said Nepgen. “Our focus is on building the infrastructure and partnerships needed to unlock this potential and support the country’s transition to a more sustainable energy future.”
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