To reduce its dependence on “unreliable” electricity supply from Eskom one of the 10 largest gold producers globally, Sibanye Gold, is investing in a coal production company to secure fuel for power production.
The company said in a statement it would invest US$16.18 million in the Australian-owned Waterberg Coal Group (WCG), adding this could be converted into shares and guarantee it had a supply of coal for its own power generation.
Neal Froneman, CEO of Sibanye, said: “We have been investigating various energy alternatives for some time now and the multi-product nature of the WCP enables us to produce energy from coal that would otherwise have been thought of as discard, in an economically viable manner.”
According to Froneman, this will enable the company to secure a reliable energy supply while simultaneously having a greater control over energy costs.
