Glencore has entered a 20-year agreement with Discovery Green to supply renewable energy for four of its South African mining operations, beginning 2027. The deal is expected to deliver over 290 GWh annually to mines in the eMalahleni area, replacing the bulk of their existing power demand with wind and solar energy.

Under the terms of the agreement, renewable power will be delivered from Discovery Green's contracted wind and solar farms via the national grid to Glencore's Goedgevonden, Tweefontein and iMpunzi mine complexes in the Nkangala District. Discovery Green describes the arrangement as one of the largest renewable energy trading agreements in South Africa, and the first to dynamically calibrate supply based on a mines' evolving operational profile.

Glencore South Africa's Coal division views the agreement as central to its plans to decarbonise operations.“This partnership with Discovery Green is a key part of our strategy to decarbonise our South African operations while maintaining energy security,” said Murray Houston, CEO of Glencore Coal South Africa. The firm expects the arrangement to stabilise electricity costs and reduce direct carbon emissions from its mines.

Discovery Green's leadership highlights that the power will be generated from its growing portfolio of wind and solar projects and delivered through wheeling arrangements over the grid.“It's a new model for the mining sector ... offering cost savings, long-term price certainty and a clear path towards a low-carbon future,” said Andre Nepgen, head of Discovery Green. The company already supports several high-profile clients, including Sasol, Impala Platinum, and various property and hospitality businesses, with renewable energy services.

The new agreement dovetails with Glencore's broader Climate Action Transition Plan, under which the company has been expanding its renewable energy footprint. In a parallel move, Glencore's South African ferroalloys unit sealed a deal in November 2024 with Pele Green Energy and Merafe Resources to develop a 100 MW solar power plant in the Free State, reinforcing its tilt toward cleaner power sources.

Energy analysts note that Glencore's shift signals a maturation of off-grid and wheeled renewable solutions in the mining sector. The model could serve as a prototype for other carbon-intensive industries seeking energy security amid rising grid instability. South Africa, contending with energy constraints and load shedding, represents a difficult environment for heavy power users - something long-term PPAs backed by independent producers are designed to insulate against. Several private developers have already resumed project development activity in the country's energy space, banking on renewed appetite from large corporates.

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