Discovery Green and Glencore seal 20-year deal to power coal mines with renewables

Confirmation on Monday that Discovery Green signed a deal to supply Glencore's coal mines with renewable energy.

Discovery Green, the renewable energy arm of Discovery Limited has signed a 20-year agreement with Glencore Operations South Africa to supply renewable power that will replace most of the electricity used at four of Glencore’s major mining sites.

Beginning in 2027, Discovery Green will provide renewable energy to the Goedgevonden, Tweefontein, and iMpunzi mining complexes near eMalahleni in the Nkangala District.

The agreement is expected to significantly cut Glencore's direct carbon emissions.

Speaking to Stephen Grootes on The Money Show, Andre Nepgen, Head of Discovery Green says this is a significant step towards growing South Africa's green economy.

"One day, we'll get to a world where the big part of the energy will come from renewable energy, but one thing you have to keep in mind, when it comes to renewable, you are reliant on the wind blowing and the sun shining, so there's always a need for diversified technology. Batteries, base-load, coal, gas. You need a combination to make these things work,"says Nepgen.

"One day I do think that renewable energy penetration within the country will be substantial enough that you see a decent quantum of a smelter running on that energy,' added Nepgen.

Listen to the interview in the audio player above.