Glencore has signed a 20-year agreement with Discovery Green to supply 290 GWh of renewable power annually to four of its South African coal mines, including Goedgevonden and Tweefontein. The deal, one of the largest in South Africa’s green-energy sector, is valued at roughly R8 billion based on Eskom’s current tariffs. Discovery Green CEO Andre Nepgen said renewables now offer lower costs and price certainty amid Eskom’s debt-driven tariff hikes.

Discovery Green is a subsidiary of Discovery.

Glencore, a major global coal producer and emitter, said the agreement supports its plan to halve emissions by 2035 and reach net-zero by 2050. The company called the deal part of its effort to: “decarbonise while maintaining energy security.”

Nepgen further commented: “Coal isn’t going to disappear overnight. It’ll be around for decades, so it’s a pragmatic compromise for these companies to embrace other forms of energy as part of their mix. When the wind doesn’t blow and the sun doesn’t shine, you’ll need a baseload from other energy forms, whether it is gas, or nuclear or, for the time being, from coal.”