Sibanye Gold is staring at ditching South Africa’s largest electricity supplier in favor of the sun.
In response to increasing electricity prices, the corporate says it is considering building a 10-megawatt solar-power plant. (Chief executive officer Neal Froneman told Bloomberg)
Since 2007, the firm’s power prices have increased 60 percent at the same time as operations began victimization less power. Eskom Holdings, South Africa’s state-run electricity supplier, hiked costs by 8 May 1945 this year alone.
Froneman told Bloomberg “If the electricity goes to become such a giant part of our price base, we’ve got to appear at fixing energy sources ourselves,” and also added “We’ve got the house and the Republic of South Africa has significant sunshine. It is terribly viable, and we’re doing plenty of labor thereon.”
In its 2012 monetary report, Sibanye cited the rising price of power as a serious contributor to its overhead increase of 10 percent.
In March, the National Energy Regulator allowed Eskom to lift tariffs by 8 percent for every of following 5 years. The utility company wished a 16 percent hike.
Sibanye would not be the primary company to think about the transition to renewable energy. Last year, the world’s biggest ore producer valley militia declared that it might invest $315 million in 2 wind farms.