Kumba Iron Ore subsidiary Sishen Iron Ore Company has signed an energy offtake agreement with Envusa Energy to develop an embedded solar plant that will supply renewable electricity directly to the Sishen mine from late 2027.
The project marks the first embedded renewable energy development to reach this stage under the Envusa programme and will be built on previously disturbed mining land within the mine boundary.
Solar plant to be built on existing mining land
The solar facility will be constructed on the G80 waste-rock dump at the Sishen mine in the Northern Cape, repurposing land that has already been disturbed through mining activities.
The plant will supply up to 63MW of renewable electricity directly to the mine. The agreement’s duration has not been disclosed.
Envusa Energy said the design includes adjustable photovoltaic mounting structures and a mobile substation to accommodate potential ground movement at the site.
Power delivery is expected to begin during the fourth quarter of 2027.
Renewable power generated on-site
Unlike wheeling agreements, where electricity is generated elsewhere and transported through the national grid, the Sishen project will generate electricity at the mine itself.
The facility will have an installed capacity of 72.5MWp of direct-current power and provide up to 63MW of alternating-current electricity to Sishen.
Kumba said the project has been sized to deliver the highest net present value through future cost savings.
Once fully operational, the solar plant is expected to reduce approximately 35% of Sishen’s current Scope 2 emissions, which are generated through purchased electricity.
Renewable energy share set to increase
Combined with the 11MW of renewable electricity already supplied to the Kolomela mine through Envusa Energy’s Koruson 2 project, renewable energy is expected to account for about 45% of Kumba’s operations.
Kumba CEO Mpumi Zikalala said the project would provide “reliable, cost-competitive renewable energy” while supporting the company’s target of reducing greenhouse gas emissions by 28% from its revised 2020 baseline by 2030.
Community trust to benefit
The Sishen Iron Ore Company Community Development Trust will hold a 10% stake in the solar project.
According to Kumba, dividend income from the investment will be directed towards job creation, education, healthcare, infrastructure and skills development.
The company also plans to prioritise workers from nearby communities during construction, provide accredited training and create opportunities for local suppliers.
First embedded project under Envusa
The agreement represents the first embedded renewable energy project to reach this stage under the Envusa Energy programme.
It expands Kumba’s renewable energy strategy from electricity wheeled through the national grid to renewable power generated directly within the Sishen mining operation.
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