A growing number of African critical mineral projects are adopting renewable energy solutions and signing Power Purchase Agreements (PPA) to meet their production goals. Platinum group metals (PGM) producer Northam (https://apo-opa.co/4ghRLe7), for example, announced in August 2024 that it will utilize a 180 MW solar facility to power its Zondereinde PGM production site in South Africa. The solar farm is set to generate 220 GWh of electricity, meeting 15% of Northam’s energy needs using renewable energy.
The upcoming Critical Minerals Africa (CMA) Summit will delve into the energy-mining nexus, providing insights into how African critical mineral projects are enhancing energy supply and affordability through PPAs.
The Critical Minerals Africa 2024 summit on November 6 – 7 serves to position Africa as the primary investment destination for critical minerals. The event is held alongside the African Energy Week: Invest in African Energy 2024 conference on November 4 – 8, offering delegates access to the full scope of energy, mining and finance leaders in Cape Town. Sponsors, exhibitors and delegates can learn more by contacting sales@energycapitalpower.com.
Northam is just one a string of mining producers utilizing PPAs to support production. Metals producer Jubilee (https://apo-opa.co/3Zmqmli) signed a three-year PPA with independent power producer Lunsemfwa Hydro Power Company in August 2024. Purchased power will support operations at Jubilee’s Roan Front-End Module and Concentrator as well as the Sable Copper Refinery in Zambia. With Jubilee expanding its production and processing facility at Sable to 25,000 tons per annum, the deal allows the firm to purchase an additional 10 MW of electricity to meet growing demand at the mine.
Earlier in August, South African mining company Tharisa (https://apo-opa.co/3XoDJhU) entered into a PPA with green energy provider Etana to enhance energy security and decarbonize its Tharisa Mine in the North West Province of the country. The agreement will supply 44% of the mine’s energy needs using wind and solar, with the construction of new farms expected by 2026. This moves Tharisa closer to its goal of meeting 76% of its energy requirements with renewable sources by 2030. The deal complements an existing PPA for a 40 MW solar PV system signed with TotalEnergies Renewables South Africa and Chariot.
Joining the increasing number of African critical mineral projects advancing energy security with PPAs is Australian mining firm Tronox Holdings (https://apo-opa.co/4cXdfdb) with the signing of a deal in June 2024 to power its South African operations. Energy firm NOA Group will supply 497 GWh of electricity, covering approximately 70% of Tronox’s mining operations by 2027, as part of the PPA. The deal complements a previous PPA signed with SOLA Group in 2022 for the offtake of 200 MW of renewable energy capacity to power Tronox’s mining operations in South Africa.
CMA 2024 will feature critical mineral project operators and energy stakeholders in high-level panel discussions on how African mining projects are advancing energy security and affordability through renewable energy.
Distributed by APO Group on behalf of Energy Capital&Power.
