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Key Points
- Sibanye-Stillwater’s 89 MW Castle Wind Farm begins operations, reducing reliance on Eskom’s grid.
- The project will cut 321,000 tons of CO₂ emissions, supporting the company’s 2040 carbon neutrality target.
- Neal Froneman leads Sibanye’s renewable strategy, expanding to 318 MW in new projects by 2026.
Sibanye-Stillwater, led by South African billionaire Neal Froneman nearing retirement, has commenced commercial operations at the 89 MW Castle Wind Farm, marking a pivotal step in the company’s renewable energy expansion.
As South Africa’s largest private-offtake wind farm, the project is set to bolster Sibanye’s mining operations with stable, low-cost renewable power, reinforcing its commitment to sustainability while reducing exposure to Eskom’s unreliable and costly grid.
Scaling renewable energy investments
Castle Wind Farm, near De Aar in the Northern Cape, harnesses the region’s rich wind resources and prime grid access to deliver clean power. Developed under a 15-year BOOT Power Purchase Agreement, it ensures reliable energy via a wheeling deal with Eskom. By securing early grid access, Sibanye-Stillwater has sidestepped South Africa’s transmission bottlenecks that have stalled many projects.
With an annual output of 309 GWh, the wind farm will supply 5.5 percent of Sibanye-Stillwater’s local electricity needs, cutting 321,000 tons of CO₂ emissions—5 percent of its total Scope 1 and 2 emissions—advancing its 2040 carbon neutrality target.
Castle Wind Farm is part of Sibanye-Stillwater’s broader push into renewables, with 318 MW in additional projects, including the 75 MW Springbok Solar and 103 MW Witberg Wind Farm, both launching in 2025. By 2026, another 333 MW, including the 140 MW Umsinde Emoyeni Wind Farm, will come online.
“This milestone delivers sustainable, lower-cost power and moves us closer to carbon neutrality,” said CEO Neal Froneman. “We value our partners’ expertise and remain committed to scaling renewables.”
Developed by a consortium led by African Clean Energy Developments (ACED), Castle Wind Farm counts AIIM’s IDEAS Fund and Reatile Renewables as key investors. AIIM, part of Old Mutual Alternative Investments, manages one of South Africa’s largest infrastructure funds. EIMS Africa will oversee operations, with Rand Merchant Bank as the sole mandated lead arranger.
Sibanye: Positioning for a greener, more resilient future
As Sibanye-Stillwater, a multinational mining and metals processing powerhouse with operations across five continents, deepens its commitment to renewable energy, it is simultaneously securing cost advantages and insulating itself from South Africa’s power crisis. Neal Froneman, who holds a 0.12% stake in the company (3,284,428 shares), is steering the miner toward a more sustainable and resilient future as he approaches retirement.
With Eskom’s grid under strain and energy security becoming a critical issue for South Africa’s industrial sector, Sibanye-Stillwater’s proactive investments in renewables could set a precedent for other mining giants. By leveraging its growing renewable portfolio, the company is not only enhancing operational resilience but also playing a crucial role in South Africa’s broader transition to a sustainable energy future.
