Anglo American partners with EDF renewables

RNS Number : 2028F

Anglo American PLC

18 March 2022

 

18 March 2022

Anglo American partners with EDF Renewables to secure 100% renewable energy supply for South Africa operations

Anglo American has signed a Memorandum of Understanding with EDF Renewables, a global leader in renewable energy, to work together towards developing a regional renewable energy ecosystem ("RREE") in South Africa. The ecosystem is expected to be designed to meet Anglo American's operational electricity requirements in South Africa through the supply of 100% renewable electricity by 2030, thereby also supporting the resilience of the local electricity supply systems and the wider decarbonisation of energy in the country.

Anglo American has already secured 100% renewable electricity supply for all its operations in South America, resulting in 56% of our global grid supply expected to be sourced from renewables by 2023.  In South Africa, while there is an abundance of renewable energy sources such as wind and solar, there is limited renewables infrastructure to harness it.  As Anglo American progresses towards its 2040 target of carbon neutral operations, this partnership with EDF Renewables is designed to abate the largest single source of its Scope 2 emissions, being its current grid supply in South Africa. The RREE aims to support South Africa's decarbonisation ambitions and the country's Just Energy Transition, creating a sustainable and inclusive future.

The RREE will draw on South Africa's natural renewable energy potential to develop a network of on-site and off-site solar and wind farms, amongst other opportunities, offering 24/7 renewable energy to Anglo American's operations. Anglo American anticipates that a number of partners will provide equity financing for the RREE, in addition to the RREE attracting debt financing that is typical for high quality energy infrastructure projects.

The partnership is expected to bring a host of benefits to South Africa and the region, including:

· Implementing 3-5 GW of renewable electricity (solar and wind) and storage over the next decade, thereby increasing total grid supply resilience;

· supporting the decarbonisation initiatives of governments across Southern Africa; and

· stimulating the development of new economic sectors, local production and supply chains.

Mark Cutifani, Chief Executive of Anglo American, said: "We are targeting carbon neutrality across our operations by 2040 and we are making good progress. Today's announcement is a further major step towards addressing our on-site energy requirements - the largest source of our operational emissions. Our partnership with EDF Renewables to address our Scope 2 footprint in South Africa complements our FutureSmart Mining™ programme's abatement of our Scope 1 emissions through low and zero emission technologies, including our hydrogen haul truck system, and the development of South Africa's Hydrogen Valley. Step by step, we are changing the very nature of mining and how our stakeholders experience our business - while supporting a Just Transition."

Bruno Bensasson, EDF Group Senior Executive Vice President Renewable Energies and Chairman & CEO of EDF Renewables, added: "The EDF Group is delighted to take a step forward with Anglo American towards this ambitious partnership. We are committed to supporting industrial players by providing a low carbon competitive electricity that substitutes fossil energies and improves wider social and environmental issues. This project is also contributing to the country energy's ambition to furthering the development of decarbonised energy. It is in line with EDF Group's CAP 2030 strategy, which aims to double its net renewable installed energy capacity worldwide (hydropower included) from 28 GW in 2015 to 60 GW in 2030."

Nolitha Fakude, Chair of Anglo American's Management Board in South Africa, said: "South Africa is embarking on the next phase of its economic development, with clean, reliable and affordable energy playing a critical role in delivering this potential - helping to catalyse new industrial hubs and stimulate local economic activity. Anglo American is committed to supporting this Just Energy Transition, encouraging growth and development for our host communities and South Africa through such projects as the RREE - very much in tune with our Collaborative Regional Development approach. Aligned to our longstanding commitment to economic transformation and empowerment, we intend to incorporate a local Black Economic Empowerment (BEE) partner into our regional renewable energy ecosystem and are exploring a range of community partnership models that will allow our host communities to share in the ecosystem's success."

Tristan de Drouas, CEO at EDF Renewables (South Africa), said: "As a significant low-carbon energy player in South Africa, we are delighted to be partnering with Anglo American to develop a regional renewable energy ecosystem, building on from a first project together in 2021. With our global expertise in energy infrastructure development, design and delivery, our grid optimisation technology, and our experience in the region, we are uniquely suited to partner with Anglo American to transform its environmental footprint, while meaningfully supporting the region's decarbonisation efforts."

For further information, please contact:

Media		Investors
UK James Wyatt-Tilby [e-mail] Tel: [phone] Marcelo Esquivel [e-mail] Tel: [phone] Katie Ryall [e-mail] Tel: [phone] South Africa Nevashnee Naicker [e-mail] Tel: [phone] Sibusiso Tshabalala [e-mail] Tel: [phone] EDF Manon de Cassini-Hérail [e-mail] Tel: [phone]		UK Paul Galloway [e-mail] Tel: [phone] Emma Waterworth [e-mail] Tel: [phone] Juliet Newth [e-mail] Tel: [phone] Michelle Jarman michelle.jarman @angloamerican.com   Tel: [phone]

EDF Renewables is an international leader in renewable energy, with a gross installed capacity of 15.6 GW worldwide. Its development is largely driven by wind (onshore and offshore) and solar photovoltaic power, and more recently battery storage. EDF Renewables operates in majority in Europe and North America but is continuing to grow by moving into promising emerging regions such as Brazil, China, India, South Africa, Australia and the Middle East. EDF Renewables develops, builds, operates and maintains renewable energy projects, both for itself and for third parties. 

Since 2011, EDF Renewables has established itself as a leading Independent Power Producer in South Africa, having successfully developed a portfolio of renewable energy projects. The subsidiary currently operates 142MW of wind farms in South Africa and has been awarded over 800MW in new projects in 2021.

For more information visit: www.edf-re.co.za

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Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers - safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking, and nickel - with crop nutrients in development - we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people's lives.

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Forward-looking statements:

This document includes forward-looking statements. All statements other than statements of historical facts included in this document, including, without limitation, those regarding Anglo American's financial position, business, acquisition and divestment strategy, dividend policy, plans and objectives of management for future operations (including development plans and objectives relating to Anglo American's products, production forecasts and Ore Reserve and Mineral Resource positions) and environmental, social and corporate governance goals and aspirations, are forward-looking statements. By their nature, such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Anglo American or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

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Legal Entity Identifier: 549300S9XF92D1X8ME43

 

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