Standard Bank partners with SOLA Group, African Rainbow Energy and Tronox SA in the first sizable renewable energy mining transaction
Tronox Holdings plc, a vertically integrated mining and chemical business, has entered into a long-term power purchase agreement with local independent power producer, SOLA Group (“SOLA”) and African Rainbow Energy (“ARE”), to construct a 200MW solar powerplant to support its mining operations in South Africa.
It is anticipated that using solar energy will reduce Tronox South African operations (“Tronox SA”) carbon emissions by approximately 13%, further providing material cost reductions and certainty of supply in its energy procurement.
The R4billion transaction is a significant step in the country’s transition toward renewable energy generation.
For SOLA Group and ARE, this transaction cements their role in developing energy generation sites for South Africa’s decentralised energy market.
Standard Bank was selected as one of the Mandated Lead Arrangers, Hedging Bank, and Account Bank for the transaction – which reached financial close within six months of being appointed.
“Standard Bank is at the forefront of the energy transition agenda, especially through renewable energy power solutions. We believe that prioritising the improvement of Africa’s sustainable energy supply is key to unlocking further growth and are therefore committed to partnering with businesses and other relevant stakeholders in finding innovative solutions to decarbonize our economy and help alleviate the energy crisis, especially in South Africa,” says Rentia van Tonder, Head: Power at Standard Bank Group.
“For the bank, this is the first sizeable renewable energy power transaction in the mining sector, for a mining client, to reach financial close in South Africa and this is a testament of our commitment to the energy transition as articulated in our Climate Policy launched earlier this year. We are committed to partner with our clients in achieving their broader Environmental, Social, and Governance goals in line with our own strategic objectives,” says Thapelo Moamogoe, Head: Mining and Metals, South Africa at Standard Bank Group.