African miners and investors are aware that a change in the way we extract minerals is necessary for both environmental reasons, as well as cost-saving concerns.
The Minerals Council South Africa recently announced that their member companies have designated $3.7 billion for renewable energy projects to help meet the industry’s commitment to achieving net-zero carbon emissions by 2050.
In the past few months, we've seen a wave of new renewable energy projects by mining companies. Some of them will be presented at the Energy and Mines Africa Virtual Summit, Feb 22-23,. Here is a round-up of 10 projects and climate commitments announced by African mining companies over the last six months.
- Mining Company: Tharisa PLC
Date Announced: Sep 29, 2021
Renewable Details: 30% Carbon Emission Cuts by 2030
Tharisa PLC is a platinum mining company based in South Africa. It is an integrated resource group engaged in exploration, mining, processing, and the beneficiation, marketing, sales and logistics of platinum group metals (PGMs) and chrome concentrates. It operates the Tharisa Mine, a co-producing, open pit PGM and chrome mine located in the Bushveld Complex of South Africa. Its subsidiaries include Tharisa Minerals, Arxo Metals, Arxo Resource and Arxo Logistics.
Tharisa announced that it plans to cut carbon emissions by 30% by 2030. To achieve its emissions objectives, the firm stated that it will rely on renewable power so as to decrease electricity produced from fossil fuels.
"At Tharisa, we view safety as a core value. The footprint we leave on the broader stakeholder environment is equally as important to us. As an industry, we must focus on the management and mitigation of mining activities, which by their very nature have an impact on the environment and local communities,” CEO Phoevos Pouroulis said in a statement.
Detailed plans to achieve the goal are in the works. In 2020, Tharisa Mine produced 142.1 kg of PGMs and 1.34 MT of chrome concentrate.
- Mining Company: Northam Platinum
Date Announced: Oct 01, 2021
Renewable Details: Renewables and Green Hydrogen
Northam Platinum, based in Gauteng, South Africa, is a PGM producer that is fully independent, self-governing, and integrated. All mining and recycling operations are completely owned by the company. Their aim is to produce one million ounces of 4E per year.
The firm announced that it will be building a 10 MW solar power plant at the Zondereinde PGMs mine in Limpopo and two smaller renewables plants at the Booysendal and Eland mines.
“There’s quite a strong business case on PV in particular. If we self-build, and we’ve got ground for the 10 MW plant at Zondereinde, we could probably get a four-and-a-half-year payback on that project, which is good. It’s not a long-dated payback. It’s reasonably short and that means for us that we can expand that 10 MW to something bigger over time,” said Northam CEO Paul Dunne.
“As a producer of green metals, we do believe that we should be looking at our carbon footprint. So, a couple of months ago, as part of our business plan initiatives, the board approved these three small renewable energy projects. I’ve got to put a caveat on that. We actually did the work and all the preparation before the change in legislation where previously there was a 10 MW limit and buffer.”
Northam Platinum also plans to work on a small hydrogen project at Eland.
- Mining Company: Anglo American Platinum
Date Announced: Oct 6, 2021
Renewable Details: 100 MW PV and Green Hydrogen
Anglo American Platinum Limited is the world's largest platinum producer. It accounts for about 38% of global production. The majority of the group's activities are located to the northwest and northeast of Johannesburg in South Africa.
Anglo American Platinum stated that EDF Renewables South African and Pele Green Energy will build a 100 MW PV for the firm. The implementation of this project will provide support to Anglo American Platinum’s target to attain carbon neutrality in all of its operations by 2040.
Anglo American Platinum CEO, Natascha Viljoen, said, “Our selection of Pele Green Energy – EDF Renewables South Africa gives us further momentum towards our environmental goals set out in our Sustainable Mining Plan designed specifically to drive business efficiency, resilience, and agility.
“We are particularly excited about the prospect of using plentiful solar energy to produce green hydrogen at Mogalakwena, as part of a broader project to convert our mine haul trucks to run on zero-emission hydrogen fuel cells,” said CEO Natascha Viljoen.
The company plans to begin construction in the last quarter of 2022 and the solar farm is expected to go online by the end of 2023.
- Mining Company: Grande Côte Opérations (GCO), Eramet
Date Announced: Sept 9, 2021
Renewable Details: 13 MW hybrid solar power station
The Grande Côte mineral sands operation (GCO) is a subsidiary of Eramet Group and the largest single dredge mineral sands operation globally.
GCO has shown its commitment to reduce carbon emissions by 40% by 2035 by integrating a 13 MW hybrid solar power station with 8 MW battery storage. The firm has signed an MOU with CrossBoundary Energy to deliver this complex project which will be commissioned in early 2023.
Guillaume Kurek, CEO of Grande Côte Operations, said: “The clean, renewable and available energy from this hybrid plant will contribute to GCO’s environmental and economic performance. The environmental value of the titanium and zircon raw materials that GCO produces will be positively impacted. This concrete commitment to low-carbon energy reflects the values and ambition of the GCO and Eramet Group teams to provide solutions to the vital climate challenge and to the living well together.”
- Mining Company: Exxaro Resources Limited
Date Announced: Sep 21, 2021
Renewable Details: Achieve carbon neutrality by 2050
Exxaro Resources Limited has unveiled a plan to become a global renewable energy solutions provider by the year 2030. “It’s important to note that Exxaro is no stranger to clean energy and has been a player in the sector for the past 10 years through its investment in Cennergi, which is the second-largest Independent Power Producer in South Africa. The company currently has nine operating assets, 11 assets under management and three generators under development as plans to grow the existing business continue…Our purpose is to drive carbon neutrality by 2050 and to provide better lives in Africa and beyond,” says Exxaro Energy MD Roland Tatnall.
The goal of the strategy is to manage carbon risk by diversifying earnings away from carbon-based commodities while also reducing the company's carbon footprint at its roots.
Financial Director, Riaan Koppeschaar said: “We have a strong balance sheet and cash generative coal operations at the core of our business. We are one of the most efficient and low-cost coal producers in the world. However, we have a long-term vision and need to adapt to the dynamics of a low carbon future. Exxaro will utilize its mining skills to supply minerals that power a cleaner world while providing shareholders with superior returns from the combination of the minerals business representing 50% of expected coal EBITDA within 10 years and the predictable cash generation of the renewable energy business. Our improved governance process, reinforced from the past learnings, will be a key foundation for our success.”
- Mining Company: Royal Bafokeng Platinum
Date Announced: Aug 3, 2021
Renewable Details: 30 MW modular PV plant
Royal Bafokeng Platinum (RBPlat) is a mid-tier platinum group metals (PGMs) producer, mining the Merensky and UG2 reefs.
RBPlat has reported that a feasibility study on the construction of a 30 MW solar plant will be concluded in Q2 of 2022. The solar plant will be utilized during peak electricity consumption at the BRPM mine, part of a first-phase renewable energy plan.
"Addressing the impact of climate change remains our key focus with ongoing climate change risk and vulnerability studies being conducted in our operations. We have set energy and water efficiency targets with the aim of improving efficiencies around our consumption of fuel, water, and electricity. To enable us to me these targets, we’re in the process of updating our energy and water strategies to identify more energy- and water-saving opportunities. We are also investigating green energy alternatives," said RBPlat CEO Steve Phiri in a statement.
The company is also investigating the feasibility of a number of smaller-scale renewable energy opportunities that will reduce their GHGs.
- Mining Company: Harmony Gold
Date Announced: Sep 1, 2021
Renewable Details: 30 MW energy plant
With nine underground mines and several surface operations, Harmony Gold is the largest gold mining company in South Africa. The company also has an open-pit gold and silver mine in Papua New Guinea.
Harmony announced that they are on the verge of building their renewable energy plants. In the first phase, they plan to build 30 MW of pay-as-you-go renewable energy plants in Free State. These will support the company’s Tshepong and Phakisa mines. They further intend to roll out the second phase of 73 MW renewable energy.
“The 73 MW will also be solar, and then in phase three, we’re talking about creating some sort of a baseload. We’re not sure if we’re going to do the 73 MW ourselves. Obviously, the mines which we just announced that we’re going to grow, for instance, will create the opportunity to actually build our own plants,” Harmony Gold CEO Peter Steenkamp.
- Mining Company: Sibanye-Stillwater
Date Announced: Sep 27, 2021
Renewable Details: 174 MW renewable power
Sibanye-Stillwater is a multinational mining firm with a diverse portfolio of platinum metals in South Africa and the United States, as well as various gold and base metals projects in South Africa and the Americas.
In September 2021, Sibanye-Stillwater announced that it will be investing in over 174 MW of green renewable energy for its South African PGM mines. The project is expected to cost between R2.5-billion and R2.8-billion.
“We are also developing a 50MW solar project for our Kloof gold mine in South Africa. It is planned to reach financial close in the second half of 2022 and commercial operation late 2024. We are also developing 250MW of wind energy through third parties, which is planned to be operation by end-2024.” said Sibanye-Stillwater energy and decarbonization head Jevon Martin.
Sibanye-Stillwater also noted that the project will allow them to access renewable energy at a 30% to 50% discount compared to grid power, which is critical given South Africa's high electricity rates.
Given that electricity is the primary form of energy, it is expected that the 97% of emissions that stem from coal and diesel-fired electricity will decrease over time in line with Sibanye-Stillwater’s PGM production profile. The company also mentioned that “a number of active decarbonization measures are currently underway ahead of that amelioration.”
- Mining Company: NextSource Materials Inc
Date Announced: Nov 23, 2021
Renewable Details: Hybrid energy power plant
Nextsource Materials Inc has awarded a power supply contract to CrossBoundary Energy for a 20-year term supply of solar and thermal generation to power its Molo graphite mine Madagascar.
The hybrid energy power plant will comprise a 2.5 MW solar PV system, a 1 MWh battery energy storage system, and a 3.3 MW thermal energy system. These will be used to ensure a continuous power supply to the mine.
"We are pleased to select CrossBoundary Energy to supply hybrid power for our Molo graphite mine, which delivers on our commitment to reduce emissions and move towards more sustainable operations," said NextSource President & CEO Craig Scherba. "Deployment of clean, renewable, and sustainable power sources to reduce emissions is a cornerstone of our operational strategy and will reduce our expected energy costs over the life of our project."
NextSource Materials Inc. is a mine development company based in Toronto, Canada, that is developing its 100%-owned, feasibility-stage Molo Graphite Project in Madagascar. Phase 1 of the Molo Project is now under construction, with commissioning planned for Q2 2022. The Molo is a feasibility-stage and fully permitted flake graphite project that ranks as one of the largest-known and highest quality deposits in the world.
- Mining Company: Rio Tinto
Date Announced: Jul 28, 2021
Renewable Details: 12 MW wind power plant
Rio Tinto has signed a 20-year power purchase agreement with CrossBoundary Energy for a renewable energy plant to supply QIT Madagascar Minerals' (QMM) ilmenite mine with solar and wind power.
In 2023, the 12 MW wind power plant will be completed. An 8.25 MW lithium-ion battery energy storage system will also be built as part of the project. QMM will be able to meet all of its electricity demands throughout peak times and up to 60% of its annual energy demand as well as lower its annual carbon dioxide emissions by 26,000 tonnes thanks to a system that comprises approximately 18,000 solar panels and four wind turbines.
QIT Madagascar Minerals (QMM), is a joint venture between Rio Tinto (80%) and the government of Madagascar (20%). It is located near Fort Dauphin in the Anosy region of south-eastern Madagascar, and primarily produces ilmenite which is a major source of titanium dioxide, predominantly used as a white pigment in products such as paints and paper.
QMM will also save up to 8,500 tonnes of heavy fuel oil each year. With this plant, QMM will replace the majority of the power it now provides to Fort-Dauphin and its 80,000 residents with clean energy.
Rio Tinto Minerals Chief Executive Sinead Kaufman, said: “With this flagship project, QMM is leading the way at Rio Tinto and in Madagascar in utilizing renewable energy to power mining operations and reduce carbon emissions.”
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