South Africa: Kumba Hands Local Communities 10% Stake in 63 MW Solar Plant

Kumba Iron Ore has signed a power offtake agreement with Envusa Energy that will give host communities a direct ownership stake in a new 63 MW solar power project at its Sishen mine in South Africa, linking clean energy investment with long term community income.

The agreement, announced as the company pushes ahead with its climate targets, is important as part of the project's future earnings will be channelled into education, healthcare, jobs and other local projects.

The agreement goes beyond supplying renewable electricity to the mine. It gives the Sishen Iron Ore Company Community Development Trust a 10 per cent ownership stake in the solar facility, allowing host communities to benefit from dividend income generated by the project over time. This combines renewable energy with a funding source for local development.

Community stake links clean energy with local benefits

Under the plan, dividends earned through the Community Development Trust will be reinvested in projects that improve the lives of people living around the mine. These include education, healthcare, infrastructure, skills training, job creation and programmes that support sustainable livelihoods.

Kumba said the construction and operation of the solar plant will also focus on creating employment opportunities for people in nearby communities. Local suppliers are also set to benefit through business opportunities linked to the project, while workers will receive accredited skills training.

The solar facility will be built on the G80 Waste Rock Dump inside the Sishen mine. Instead of using new land, the company will turn a previously disturbed mining site into renewable energy infrastructure. Kumba said engineers developed solutions to deal with difficult ground conditions while making productive use of land that had already been affected by mining.

The project has an installed capacity of 72.5 MWp DC and will supply 63 MW AC of renewable electricity directly to the mine. The first electricity is planned for delivery during the fourth quarter of 2027.

Solar project supports climate targets

The new plant will also help Kumba cut emissions linked to electricity use at the Sishen mine. Once fully operational, the company projects that it will reduce about 35 per cent of the mine's current Scope 2 carbon emissions.

The project forms part of Kumba's plan to reduce greenhouse gas emissions by 28 per cent from its 2020 baseline by 2030. It also supports the climate targets set by its parent company, Anglo American, for the same period.

The Sishen Solar PV project is the first embedded renewable energy project under the Envusa Energy programme to reach this stage. It follows the completion of Envusa's Koruson 2 renewable energy cluster, which includes the 240 MW MooiPlaats Solar PV project as well as the 140 MW Umsobomvu Wind and 140 MW Hartebeesthoek Wind projects in South Africa's Eastern and Northern Cape provinces.

Kumba said the addition of the new solar facility will increase renewable electricity use within its operations to about 45 per cent. That figure includes the 11 MW of renewable electricity already being supplied to the Kolomela mine through the Koruson 2 cluster since March 2026.

Kumba Chief Executive Officer Mpumi Zikalala said the agreement would provide reliable and cost competitive renewable electricity while helping the company reduce carbon emissions. She said the project also strengthens the company's path towards meeting its long term climate goals.