Sibanye-Stillwater Advances $135 million Renewable Energy Initiatives Amid Land Claim Delays
Sibanye-Stillwater, one of South Africa's largest private sector employers, is moving forward with renewable energy projects valued at R2.5 billion ($135 million) despite facing significant delays due to land claims. Business Day reports that three of the company's renewable projects were postponed for 12 to 18 months because of land claims lodged between July 1, 2014, and July 27, 2016. These claims affected land parcels owned by the group and its affiliates.
Despite these hurdles, Sibanye has chosen to proceed after obtaining independent expert assessments regarding the validity of the claims. These assessments concluded that the claims posed either no valid threat or a very low risk to the projects. This decision aligns with the company's commitment to its decarbonization goals, marked by the initiation of two significant renewable energy projects in December.
The Witberg Wind Energy Project in the Western Cape boasts a capacity of 103MW, while a 150MW AC solar photovoltaic project developed by Sola Group will supply Sibanye with 75MW of power under a 10-year purchase agreement.
Moreover, the broader South African industry has about 100 renewable energy projects lined up, with an estimated value of R150 billion ($8.1 billion), as per the Minerals Council SA. These projects are seen as crucial for reducing reliance on traditional power sources and enhancing sustainability in the mining sector.
However, the insurance broker Crawford Dougall has highlighted the importance of considering insurance risks associated with renewable energy. These facilities present unique risk factors, notably different from those of traditional mining operations or other industrial activities. The report suggests that while renewables can significantly decrease operating costs—by 25% in existing operations and up to 50% in new mines—they also introduce new challenges that need careful management.
