How Glencore and Merafe Champion Renewable Power in Mining

Despite South Africa’s abundant natural resources, only about 9% of its energy was renewable in 2023.

Tackling this discrepancy, Glencore and Merafe Resources are joining forces with Pele Green Energy (PGE) to integrate renewable energy into mining operations.

Through a Power Purchase Agreement (PPA), the partnership will bring sustainable power to the Glencore-Merafe Chrome Venture, setting an example of how renewable energy can drive transformation in heavy industries.

The Sonvanger Solar PV Power Plant: A model of sustainable procurement

At the heart of this collaboration is the Sonvanger Solar PV Power Plant, a utility-scale renewable energy project designed, financed, built and operated by PGE. Located in Theunissen, a small agricultural and mining town in South Africa’s Free State province, this 100MW plant will supply clean, reliable energy to ferrochrome operations for the next 20 years.

Spanning 190 hectares and connected through 22km of new transmission infrastructure, the solar plant is the first utility-scale project in South Africa led by a sole sponsor and single independent power producer (IPP). With an estimated reduction of 1.82 million tonnes of carbon emissions, Sonvanger is not just a power plant—it’s a blueprint for responsible sourcing and sustainable development.

“This partnership underscores a shared vision for a low-carbon future,” says Gqi Raoleka, CEO of PGE.

“Glencore Merafe Venture’s approach has demonstrated a dedicated commitment to addressing Scope 2 emissions from industrial operations, signifying how sustainable practices are crucial to the future of mining.”

The venture illustrates how procurement decisions aligned with sustainability can redefine industries.

By selecting renewable energy sources, Glencore and Merafe are reinforcing a commitment to suppliers who prioritise environmental responsibility, reducing the carbon footprint of their operations while fostering community development.

Renewable power for ferrochrome: Addressing sustainability challenges

The partnership’s renewable energy focus directly addresses the high environmental costs of producing ferrochrome, a key ingredient in stainless steel manufacturing.

Ferrochrome production involves the carbothermic reduction of chromite in electric arc furnaces—a process that consumes large amounts of electricity, traditionally sourced from coal-fired plants.

With South Africa being one of the world’s largest ferrochrome producers, this industry’s energy demands significantly impact its carbon emissions. The Sonvanger Solar PV Power Plant is a pivotal step in mitigating these effects by integrating renewable power into the smelting process.

“Clean, reliable and sustainable power from Sonvanger Solar supports Glencore’s Purpose of responsibly sourcing the commodities that advance everyday life,” says Japie Fullard, CEO of Glencore Ferroalloys.

“This project aligns with the Venture’s broader climate strategy.”

Sustainable procurement lies at the core of this initiative. By prioritising renewable energy, Glencore and Merafe demonstrate how sourcing decisions can support both environmental goals and operational efficiency.

The investment in solar power also sends a strong signal to the industry, showcasing how integrating clean energy into supply chains can drive competitive advantage.

Adhila Mayet, Head of Project Development at PGE, emphasises its far-reaching impact: “The Sonvanger Solar PV Power Plant is more than just a power generation facility—it is an engine of economic growth and a catalyst for job creation.

"The project will benefit local communities, contributing to infrastructure development and long-term socio-economic prosperity.”

Economic and environmental leadership in mining

The Glencore-Merafe Chrome Venture, the world’s largest ferrochrome producer, operates five ferrochrome smelters, six chrome ore mines and 22 ferrochrome furnaces across South Africa.

With Glencore owning a 79.5% stake and Merafe Resources holding the remaining 20.5%, the venture represents a significant portion of global ferrochrome production.

The Sonvanger project marks a bold step in aligning this scale of operation with sustainability goals. It highlights the critical role procurement plays in enabling large-scale shifts towards renewable energy.

Decisions about sourcing energy, equipment and services for the project reflect an integrated strategy prioritising sustainability at every level.

“This solar project highlights how sustainable energy procurement benefits not only the environment but also the communities that support industrial activities,” says Gqi.

By investing in renewable infrastructure, Glencore and Merafe encourage the broader adoption of green practices across the mining supply chain.

The PPA with PGE ensures a long-term commitment to environmentally responsible operations, reducing the venture’s reliance on fossil fuels while fostering local economic growth.

The project also serves as an example for others in the mining sector to consider renewable energy solutions as part of their procurement strategies. As Gqi notes, “We are excited to be part of achieving these critical sustainability milestones for this industry.”

Through Sonvanger, Glencore, Merafe and PGE demonstrate that sustainable sourcing is not just a corporate responsibility—it’s a strategic imperative shaping the future of mining.

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