By: Mining review Africa

South Africa's platinum group metals (PGM) mining sector, which is heavily dependent on Eskom's coal-dominated and unreliable grid, is increasingly investing in renewable energy and efficiency initiatives. Beyond environmental, social, and governance (ESG) goals, the push is driven by the urgent need to secure stable power, reduce soaring electricity costs, and protect margins from high tariffs and frequent outages.

PGM production is energy-intensive, and reliance on Eskom's unstable supply has forced producers to rely on expensive diesel backup and private generation, eroding profitability. To address this, companies are implementing technology upgrades, energy-saving programs, and long-term power purchase agreements (PPAs) for renewable energy. These moves aim to enhance energy resilience, stabilize costs, and align with decarbonization targets.

Examples include Sibanye-Stillwater's PPA from the Umsinde Emoyeni wind farm and Valterra Platinum's 20-year agreement to source 460 MW from the upcoming Koruson 2 solar and wind projects. Such investments are becoming critical for maintaining competitiveness amid volatile energy markets and growing sustainability expectations.