Impala Platinum (Implats) has signed a five-year power purchase agreement (PPA) with Discovery Green to supply wheeled renewable energy to its Impala Refineries operation, which is based in Springs, east of Johannesburg.
Nico Muller, CEO of Implats, said on Monday that securing renewable and sustainable power supply helps the Zimbabwe and South African platinum group metals (PGM) miner to control production costs in the face of subdued commodity prices.
Implats has just completed a 35MW solar plant - constituting the first phase of a 185MW solar project - at its Zimbabwe operation, Zimplats and has now secured a renewable power purchase agreement for its Impala Refineries operation in SA.
“In a cyclical commodities price environment, (renewable power supply agreements) are a significant lever in our ability to control input costs to ensure long- term business sustainability,” said Muller.
The South African renewable power purchase agreement for Implats Refineries has been signed between Implats and Discovery Green, a company controlled by Discovery and which is involved in the renewable power supply sector.
Muller said the five year power purchase agreement with Discovery Green “builds on and complements our significant renewable energy project pipeline” that includes the Zimbabwe solar plant.
As at the end of Implats’ 2024 full year, renewable electricity accounted for 37% of the company’s total electricity consumption, up from 30% in the prior year. Of this, market instruments accounted for 53% of the company’s electricity mix.
Under the new deal, Discovery Green will supply wheeled renewable energy to the Impala Refineries operation. Implats said that this renewable electricity contract will help significantly reduce Impala Refineries’ Scope 2 greenhouse gas (GHG) emissions by more than 852 000 tons of CO2e over the initial five-year period in addition to the cost savings to be accrued.
“This renewable energy wheeling agreement meaningfully accelerates our decarbonisation journey. From 2026, the PPA will reduce our Scope 2 GHG emissions by 170 484 tons CO2e per year and advance our goal of achieving a 30% reduction in carbon emissions by 2030,” said Patrick Morutlwa, Implats chief operating officer.
Discovery Green seeks to help South African companies to replace 90% of their electricity demand with price-certain renewable energy. The electricity that Discovery Green supplies to South African companies is generated from wind and solar plants.
This comes against the backdrop of an improvement in electricity supply under Eskom. However, mining companies have been complaining of the high cost of electricity, highlighting how this is adding up to the companies’ operating and unit costs at a time prices for commodities such as PGMs, coal and others have been highly volatile.
Said Andre Nepgen, the head of Discovery Green: “This agreement with Implats represents a significant step towards South Africa’s energy transition and highlights the power of collaboration in addressing climate challenges. By integrating renewable energy into their operations, Implats is not only advancing decarbonisation but also positioning itself for competitiveness in a low-carbon economy.”
BUSINESS REPORT