RICHARDS Bay Minerals (RBM) on Thursday announced a third renewable energy supply agreement which will see the KwaZulu-Natal operation reduce greenhouse gas emissions by 60%.
In terms of a power purchase agreement with Red Rocket South Africa, which is building the Overberg Wind Farm in the Western Cape province, RBM will secure 230MW of the project’s total 380MW export capacity.
“The Overberg Wind Farm project represents the biggest project in RBM renewable energy procurement and is a key step towards RBM achieving its commitment in line with the target set by the Rio Tinto Group, to reduce its emissions by 50% by 2030,” said Werner Duvenhage, MD of RBM.
In addition to two previous projects signed by RBM, the PPA with Red Rocket is expected to reduce RBM’s annual Scope 1 and 2 emissions by around 60% (1.4 Mt CO2e) from a 2018 baseline, the group said.
As for the Overberg Wind Farm specifically, the project is expected to reduce RBM’s annual greenhouse gas (GHG) emissions by 30% per cent (0.7 Mt of CO2e). It takes the firm’s total renewable energy procured through PPAs to about 500MW .
In October 2022, RBM announced the signing of the 130MW Bolobedu Solar PV project in Limpopo province. It has the capacity to generate around 300GWh of energy a year. Construction is underway.
Construction is also progressing at Khangela Emoyeni Wind Farm near Murraysburg in the Western Cape and Northern Cape provinces. Scoped for generation of 140MW, the project will deliver around 460GWh of renewable energy annually to RBM through a wheeling arrangement with Eskom.
Duvenhage said at an announcement of the Khangela Emoyeni Wind Farm PPA in June last year that the company would also proceed with its long-delayed Zulti South expansion after restoring community stability.
The project – first scoped in 2019 to extend production of 660,000 tons annually by 25 years – would be put to Rio Tinto’s board this year.
Based on Rio Tinto’s 74% stake in RBM, Rio Tinto’s attributable capex for Zulti South was expected to be $343m ($463m total capex). But in 2020 the project was put on indefinite suspension following community-related violence in which RBM’s GM was murdered. A force majeure was also announced at RBM productive facilities.
“We have been able to have a stable environment, the current operations are running very smoothly. We are glad about that. It has allowed us to continue work on Zulti South for approval by Rio Tinto shareholders,” he said.
A new feasibility study would be completed by “the end of the year or early next year” to be submitted for approval by Rio Tinto in 2025. Construction of a pilot plant was underway with the full project potentially starting next year, said Duvenhage.
RBM currently operates four mines in the Zulti North lease area, a mineral separation plant and a smelting facility. The plant produces zircon and ilmenite which has a range of industrial uses in the North American, European and Asian markets RBM supplies. Ilmenite is used in paint pigment and ceramics.
