Kumba Iron Ore has signed a 20-year agreement with Envusa Energy to supply renewable electricity to its flagship mine, Sishen, based in the Northern Cape.
The investment forms part of Kumba’s broader strategy to reduce its dependence on grid electricity, improve cost competitiveness and move closer to its target of cutting greenhouse gas emissions by 28% by 2030.
The agreement, signed through Kumba’s subsidiary Sishen Iron Ore Company (SIOC), will see electricity supplied from the new Sishen Solar Photovoltaic (PV) plant, which is expected to begin generating power in the fourth quarter of 2027.
Energy security and climate ambitions
Mpumi Zikalala, Kumba’s chief executive officer, said the project supports both the company’s energy security and climate ambitions.
“The Sishen solar PV project is designed to deliver reliable, cost-competitive renewable energy and, together with Kolomela, which has been receiving 11MW in wheeled renewable energy since March 2026, strengthens the pathway to a lower-carbon future. The project advances our ambition to reduce greenhouse gas emissions by 28% by 2030 and supports Anglo American’s 2030 climate target,” said Zikalala.
Envusa Energy is a joint venture between EDF Power Solutions and Anglo American, Kumba’s controlling shareholder. It develops renewable energy projects and supplies electricity through long-term power purchase agreements.
The solar plant is expected to increase Kumba’s renewable energy use to around 45% when combined with the 11MW of wheeled renewable energy already being supplied to its Kolomela mine since March 2026.
The project will have an installed capacity of 72.5MWp (DC) and will supply 63MW (AC) of electricity directly to the Sishen mine under the Energy Offtake Agreement (EOA).
According to the company, the project is expected to cut around 35% of Sishen’s current Scope 2 greenhouse gas emissions once it reaches full operation.
Meaningful financial savings
Beyond its environmental benefits, the agreement is also expected to deliver meaningful financial savings. Kumba said the electricity price under the contract currently represents about a 30% saving compared with Eskom’s existing tariff, although the total savings over the life of the agreement will depend on future Eskom tariff increases and other factors.
The agreement gives SIOC the option to purchase the solar project from Envusa Energy for a nominal amount after the initial 20-year contract expires, provided the relevant conditions are met.
SIOC will buy electricity on a take-or-pay basis, while Envusa Energy must meet minimum performance guarantees and maintain a Level 4 BBBEE rating or better. The agreement also includes provisions covering default, force majeure and network disruptions.
- Kumba Iron Ore signed a 20-year deal with Envusa Energy to supply renewable electricity to its Sishen mine from a new solar PV plant expected online by late 2027.
- The project aims to reduce reliance on grid power, cut greenhouse gas emissions by 28% by 2030, and enhance energy security.
- The 72.5MWp solar plant will provide 63MW AC directly to the mine, potentially reducing Sishen's Scope 2 emissions by 35%.
- Combined with existing renewables at the Kolomela mine, Kumba’s renewable energy use will reach about 45%.
- The contract offers roughly 30% cost savings compared to Eskom tariffs and includes options for eventual plant purchase and performance guarantees.
Mpumi Zikalala,
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Envusa Energy is a joint venture between EDF Power Solutions and
SIOC will buy electricity on a take-or-pay basis, while Envusa Energy must meet minimum performance guarantees and maintain a Level 4 BBBEE rating or better.
