Kumba Iron Ore, through Sishen Iron Ore Company (SIOC), has entered into an energy offtake agreement with Envusa Energy for the embedded on-site supply of renewable electricity to its Sishen mine in South Africa. The agreement marks a significant step in the company’s decarbonization strategy, with the Sishen Solar Photovoltaic (PV) project set to provide 63 MW of renewable electricity to the mine. The first electricity from the project is expected to be delivered during the fourth quarter of 2027.
The solar project is expected to become a major contributor to Kumba’s sustainability goals. Once fully operational, it is projected to reduce approximately 35% of Sishen mine’s current Scope 2 carbon emissions. The initiative also supports Kumba’s target of cutting greenhouse gas emissions by 28% from its 2020 baseline by 2030, while contributing to parent company Anglo American’s climate commitments for the same year.
The Sishen Solar PV project is the first embedded renewable energy project to reach this stage under the Envusa Energy programme. It follows the successful completion of Envusa’s Koruson 2 renewable energy cluster, which includes the 240 MW MooiPlaats Solar PV project and the 140 MW Umsobomvu Wind and 140 MW Hartebeesthoek Wind projects located across the Eastern and Northern Cape provinces.
The new solar facility will be constructed on the G80 Waste Rock Dump within the Sishen mine boundary. By utilizing previously disturbed mining land, the project transforms an unused site into renewable energy infrastructure. According to the company, the development required innovative engineering solutions to address challenging ground conditions while maximizing the productive use of existing mining land.
The facility has been designed with an installed capacity of 72.5 MWp DC, delivering 63 MW AC to the mine. With the addition of this project, Kumba’s renewable energy penetration is expected to increase to around 45%. This figure includes the 11 MW of wheeled renewable electricity that has been supplied to the Kolomela mine through Envusa’s Koruson 2 cluster since March 2026.
Beyond environmental benefits, the project is also expected to generate positive economic and social outcomes. Kumba stated that construction and operation of the solar facility will prioritize employment opportunities for host communities, provide accredited skills training, and expand business opportunities for local suppliers. The company believes this approach will support inclusive economic development while advancing its clean energy transition.
A key feature of the project is the participation of the Sishen Iron Ore Company Community Development Trust (SIOC CDT), which will hold a 10% ownership stake in the Sishen Solar PV project. Through this investment, host communities are expected to benefit from long-term dividend income generated by the renewable energy asset. The proceeds will be reinvested into community development initiatives, including education, healthcare, infrastructure, job creation, skills development, and sustainable livelihood programmes.
Commenting on the agreement, Kumba Chief Executive Officer Mpumi Zikalala said the Sishen Solar PV project will provide reliable and cost-competitive renewable electricity while strengthening the company’s pathway toward a lower-carbon future and supporting its long-term climate objectives.
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