South African coal producer Seriti Resources has to build the country鈥檚 largest wind farm to power its operations.
The 155-megawatt (MW), 4 billion rand ($236 million) project by Seriti鈥檚 green energy unit, Seriti Green, will be located in the nation鈥檚 coal-rich Mpumalanga province.
Construction of the wind farm will take about two years and it is expected to generate about 75% of the electricity Seriti needs to run its coal mines in South Africa.
The energy produced at the plant is also slated to be cheaper 鈥� as much as 40% less expensive 鈥� than buying electricity from Eskom, the company said.
鈥淭his agreement is a meaningful step that further cements the significance of the inclusion of renewable energy through Seriti Green into the Group鈥檚 existing portfolio of high-quality coal assets to lower its carbon footprint and ensure long- term sustainability as a diversified energy producer,鈥� Seriti鈥檚 chief executive Mike Teke, said in the statement.
The move is a clear example on an ongoing switch among miners to renewables due to struggling state power utility Eskom鈥檚 inability to meet demand.