South African Miners’ Renewable Power Push Turns Energy Security Into a Balance Sheet Strategy

South African miners are accelerating investment in renewable power, and the shift is no longer only about climate commitments. It is becoming a balance sheet strategy for an industry that needs cheaper, more reliable electricity to protect margins and production. Reuters reported on August 26, 2026 that mining firms including Anglo American and Sibanye Stillwater are increasing renewable energy procurement after decades of dependence on Eskom, South Africa’s state-owned electricity utility.

The Reuters report, republished by MarketScreener, said South Africa still generates more than 80 percent of its power from coal, while renewables account for roughly 10 percent. That energy mix remains central to the country’s industrial economy, but mining executives are increasingly treating Eskom reliance as a financial and operational risk that must be reduced over time.

The shift is taking place even as Eskom’s reliability has improved. Eskom said on August 7 that South Africa had recorded 448 consecutive days without loadshedding since May 16, 2025, and that its financial year-to-date energy availability factor had reached 67.24 percent, the strongest year-to-date performance in six years. That improvement matters, but it has not ended the mining sector’s push for self-supply, power-purchase agreements and hybrid energy systems.

Why miners are moving faster

Mining is one of South Africa’s most electricity-intensive industries. Deep-level gold mines, platinum group metals operations, smelters, processing plants, pumps and ventilation systems depend on steady power. When electricity is unreliable or expensive, production schedules, safety systems and cost structures are affected immediately.

For years, loadshedding forced companies to plan around interruptions. Even where direct shutdowns were avoided, the broader cost of grid instability affected confidence, expansion decisions and investment planning. The current renewable push is therefore about control. Companies want a larger share of their electricity supply to come from sources they can contract, model and price over longer periods.

Reuters quoted executives saying renewable power can be 20 percent to 30 percent cheaper than forecast Eskom tariffs. That price gap is decisive. In a commodity business where producers cannot fully control global prices, lowering input costs becomes one of the few levers management can pull. Electricity is not a side cost for miners. It is part of the economics of ore bodies, shafts, concentrators and processing plants.

Anglo American’s Envusa model

Anglo American is one of the clearest examples of the shift. In 2022, it formed Envusa Energy, a 50-50 joint venture with EDF power solutions, to supply renewable energy to operations including Kumba Iron Ore, De Beers and former subsidiary Valterra Platinum. Reuters reported that Envusa currently generates 520 megawatts of power, made up of 280 MW of wind and 240 MW of solar, representing around 30 percent of Anglo mines’ energy consumption.

Envusa’s pipeline is larger. Reuters reported that it has a 1,500 MW project pipeline and an ambition to generate 3,000 MW by 2030 for Anglo sites and other industrial users. The next phase includes strong wind projects and behind-the-meter solar-plus-battery projects.

This model is important because it shows how mining houses can move beyond isolated rooftop solar or small backup systems. A dedicated renewable-energy platform can aggregate demand, structure long-term procurement, work with independent power producers and build a pipeline that supports several industrial users. For South Africa, that kind of corporate demand can help deepen the renewable project market.

Sibanye Stillwater’s procurement strategy

Sibanye Stillwater is taking a different route. Reuters reported that the company prefers short- and long-term power-purchase deals rather than owning generation assets directly. It has contracted 835 MW of renewable capacity, with 164 MW already operational. By the end of 2028, about 64 percent of total energy demand at Sibanye’s South African operations is expected to come from renewables.

That is a major change for a company that still depended heavily on Eskom in 2025. Reuters reported that Eskom supplied roughly 99 percent of Sibanye’s platinum group metals energy demand and 88 percent of its gold electricity demand last year. Moving from that level of dependence toward majority renewable supply in South Africa would materially change its risk profile.

The procurement route can be attractive because mining companies do not need to become full-scale power developers. They can contract energy from specialised producers while using long-term offtake agreements to support project financing. The challenge is ensuring that contracted renewable output matches operational needs, especially during peak production periods or when weather conditions reduce generation.

Eskom remains part of the system

The mining sector’s renewable acceleration does not mean Eskom disappears from the energy equation. Reuters reported that mining executives still see Eskom-supplied baseload power as essential for years to come because renewables are intermittent and battery storage continues to develop.

That is the practical reality. Wind and solar can lower costs and emissions, but mines need continuous power. Battery storage can help shift energy and support reliability, but large-scale industrial storage remains capital-intensive. In the near term, the likely model is hybrid: grid power, renewable power-purchase agreements, behind-the-meter solar, wind, batteries, backup generation and selective alternative fuels.

This hybrid model may be more resilient than full reliance on any single source. It also changes Eskom’s role. Instead of being the sole supplier, Eskom becomes part of a wider industrial power portfolio. That can reduce pressure on the grid while allowing companies to manage energy costs more actively.

Coal miners are also changing

The shift is not limited to diversified miners or platinum producers. Reuters reported that coal producers are also increasing renewable energy use. Exxaro Resources, through its renewable energy subsidiary Cennergi, currently operates 297 MW of capacity and has a near-term pipeline of 593 MW. The group is targeting 1,600 MW of net installed capacity by 2030.

Exxaro’s renewable strategy is both operational and strategic. Reuters reported that a 68 MW solar plant at its Grootegeluk coal mine has reduced the mine’s reliance on the national grid by 30 percent, saving the company about 100 million rand, or US$6.25 million, annually in electricity costs and reducing scope 2 emissions by 22 percent.

That example captures the business case. Even a coal producer can justify renewable energy when it lowers operating costs, reduces grid exposure and supports emissions targets. In South Africa’s mining sector, renewables are no longer only a reputational investment. They are becoming a direct cost-saving tool.

Thungela and alternative fuels

Thungela Resources is also exploring energy efficiency through a coal-bed methane project in Limpopo’s Waterberg coalfield. Reuters reported that the company has drilled about 19 wells and begun extracting gas that will fuel a generator at one of its sites. Its chief financial officer said the project could eventually reduce Eskom utility costs by 30 million to 40 million rand a year if the wells become fully functional.

The project is not a classic renewable-energy investment, but it reflects the same strategic direction: reduce dependence on expensive grid supply, improve energy efficiency and gain more control over power inputs. For coal miners facing long-term decarbonisation pressure, energy diversification is likely to become a central part of business planning.

Industrial policy implications

The mining sector’s energy transition has implications beyond company balance sheets. South Africa’s ability to process minerals, attract investment and protect jobs depends on reliable electricity. If miners can reduce their own power risks, they can make operations more resilient. But private energy solutions also raise broader policy questions.

Large companies can finance renewable power, negotiate long-term deals and hire technical advisers. Smaller industrial firms may not have the same capacity. If energy reform benefits mainly large corporate buyers, South Africa could see a two-speed industrial energy market: major exporters with private power portfolios and smaller businesses still exposed to grid tariffs and local supply problems.

That makes regulatory clarity important. Grid access, wheeling agreements, permitting, storage rules, municipal electricity finances and transmission investment will determine how widely private renewable power can support the economy. Mining demand can anchor projects, but South Africa still needs a grid that can move clean power efficiently.

Climate targets and investor pressure

Decarbonisation is another driver. Global investors, lenders and customers are increasingly asking mining companies to reduce scope 1 and scope 2 emissions. For South African miners, purchased electricity from a coal-heavy grid is a major emissions source. Renewable procurement can therefore lower reported emissions and support access to sustainability-linked finance.

Exxaro has set targets to reduce scope 1 and scope 2 emissions by 40 percent by 2030 and 70 percent by 2040, with carbon neutrality targeted by 2050. Other miners face similar pressure from shareholders, customers and regulators. Renewable power helps meet those targets while delivering cost benefits, which is why the transition is accelerating even in traditionally carbon-intensive sectors.

Still, mining’s climate challenge is broader than electricity. Companies must also deal with diesel use, processing emissions, rehabilitation, water, waste and community impacts. Renewable power is a necessary step, but not a complete sustainability strategy.

What to watch next

The next stage will be measured by project delivery rather than announcements. Key signals include how quickly contracted megawatts reach commercial operation, whether battery storage becomes more common, how wheeling arrangements perform, and whether renewable supply delivers the promised 20 percent to 30 percent savings against Eskom tariff forecasts.

Investors should also watch how Eskom responds. Improved Eskom reliability reduces emergency pressure, but tariff paths, grid investment and transmission constraints will still shape corporate procurement decisions. If Eskom becomes more reliable but also more expensive, private renewable projects will remain attractive.

For mining communities, the transition should be monitored for local benefits. Renewable projects can create construction jobs, technical maintenance roles and opportunities for local suppliers. But if projects are developed without community participation, the benefits may be uneven. Mining companies will need to connect energy strategy with social licence.

The bottom line

South African miners’ renewable power push is no longer a narrow decarbonisation story. It is a response to electricity cost, grid risk, investor pressure and the operational demands of a power-intensive industry. Anglo American, Sibanye Stillwater, Exxaro and Thungela are each pursuing different routes, but the direction is consistent: less dependence on a single utility and more control over energy inputs.

Eskom remains central to South Africa’s power system, and its recent reliability improvements are important. But the mining sector has learned that energy security cannot rest on one supplier alone. The future is likely to be hybrid, with grid power, renewables, storage and alternative fuels managed as part of industrial strategy.

For Africa’s most advanced mining economy, this shift matters. If renewable energy lowers costs and improves reliability, it can strengthen mineral production, protect jobs and support decarbonisation. If execution stalls, power will remain one of the biggest constraints on South African industrial competitiveness.

Sources

• Reuters via MarketScreener – South African miners accelerate shift to renewable power to cut Eskom reliance, 27 August 2026
• Engineering News – electricity sector coverage including Reuters report on South African miners, 26 August 2026
• Eskom – strongest year-to-date EAF performance in six years, 7 August 2026
• Reuters Connect – South African miners bet on renewables to cut Eskom reliance and emissions, August 2026
• African Economy Inc. – South African miners accelerate renewable shift, 26 August 2026