Richards Bay Minerals Secures 140MW Wind Power in New PPA

Richards Bay Minerals (RBM) has signed a renewable power purchase agreement (PPA) with Khangela Emoyeni Wind Farm (Pty) Ltd, securing 140MW of wind energy from a new wind farm in the Western and Northern Cape Province. This project is expected to reduce RBM's annual carbon emissions by 20%.

The 20-year PPA involves African Clean Energy Developments (Pty) Ltd (ACED), The IDEAS Fund (managed by African Infrastructure Investment Managers), Reatile Group, and Rand Merchant Bank. EIMS Africa will handle asset management for the project.

Once operational, the Khangela Emoyeni Wind Farm is expected to generate approximately 460GWh of renewable energy annually. Through a wheeling agreement with Eskom, this energy will power RBM's operations in Richards Bay, KwaZulu-Natal. The wind farm, with a 140MW export capacity, is projected to reach commercial operation within 28 months.

Werner Duvenhage, Managing Director of Richards Bay Minerals and Rio Tinto Iron and Titanium African Operations, emphasized the significance of this initiative. "As a world-leading mineral sands operation, we are committed to decarbonizing our operations. Rio Tinto aims to reduce Scope 1 and 2 emissions by 50% by 2030 and achieve net zero by 2050. The Khangela Emoyeni Wind Farm can cut RBM's annual carbon emissions by 20% and decrease our reliance on traditional energy sources by 26%."

In 2022, RBM signed a similar agreement for the Bolobedu Solar PV plant in Limpopo with Voltalia. The Bolobedu project, currently under development, is expected to meet 17% of RBM's power consumption by generating up to 300GWh of renewable energy annually.

Combined, the Khangela Emoyeni Wind and Bolobedu Solar projects will supply about 42% of RBM's energy needs. These projects also present opportunities for job creation, skills development, and knowledge transfer within local communities during both construction and operational phases.

James Cumming, General Manager at ACED, expressed pride in the project. "We are immensely proud to have achieved financial close and commenced construction on Khangela Emoyeni Wind Farm with Rio Tinto's Richards Bay Minerals. It will provide clean energy for RBM's operations and help alleviate South Africa's power crisis."

The sands processed by RBM are rich in zircon and titanium, critical minerals for various industrial applications.