Anglo American announced its new partnership with EDF Renewables on Friday, which is set to see the mining company switch to 100% renewable energy for its South African operations.
Anglo American aims to develop a regional renewable energy ecosystem (RREE) across the country and secure 100% renewable energy for its mining operations in the region by 2030.
The mining company’s South African grid supply is reportedly the biggest contributor to its scope 2 emissions.
Anglo American is set to invest in a green energy infrastructure on-site and off-site to harness solar and wind farms, alongside alternative methods of renewable energy opportunities.
The new renewable energy supplies will generate an estimated 3-5 GW of electricity and storage over the coming decade and reinforce total grid supply resilience.
The company estimates the project’s financing will be provided by partners in equity financing and debt financing in line with similar energy infrastructure investments.
The news followed Anglo American’s successful move to hit 100% renewable energy for its South American operations.
The company reportedly intends to achieve carbon neutral status by 2040.
“We are targeting carbon neutrality across our operations by 2040 and we are making good progress,” said Anglo American CEO Mark Cutifani.
“Today’s announcement is a further major step towards addressing our on-site energy requirements – the largest source of our operational emissions.”
“Step by step, we are changing the very nature of mining and how our stakeholders experience our business – while supporting a Just Transition.”
Anglo American’s share price was up 0.3% at 3,667p in early afternoon trading on Friday.