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Sibanye-Stillwater commences its first utility-scale renewable energy project

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(Kitco News) - Sibanye-Stillwater (NYSE: SBSW) announced yesterday that it has concluded its first power purchase agreement and achieved financial close for an 89-megawatt wind energy project.

The company said that this clean energy will be generated by the Castle Wind Farm, located near the town of De Aar in the Northern Cape province of South Africa, and will supply the SA operations via a wheeling agreement with Eskom.

"This will be the largest private wind farm constructed in South Africa to date,” Sibanye said in a statement.

Construction of the Castle Wind Farm is expected to commence in June 2023 and is scheduled for commercial operation in early 2025.

Under the terms of the 15-year power purchase agreement, the Castle Wind Farm will be funded, built, and operated by a consortium, which consists of African Infrastructure Investment Managers, through its renewable energy project development and delivery platform, African Clean Energy Developments and Reatile Renewables.

CEO Neal Froneman commented, "This marks our first major step in delivering over 550 MW of our renewable project portfolio and is a significant milestone in our journey to carbon neutrality by 2040. The project will not only play a pivotal role in reducing carbon emissions and mitigating climate change but also results in cost savings on electricity and provides energy security benefits for Sibanye-Stillwater's SA operations.”

Sibanye-Stillwater is one of the world's largest primary producers of platinum, palladium, and rhodium and is a top tier gold producer. It also produces and refines iridium and ruthenium, nickel, chrome, copper and cobalt.

The company has recently begun to build and diversify its asset portfolio into battery metals mining and processing and is increasing its presence in the circular economy by growing and diversifying its recycling and tailings reprocessing operations globally.

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