Northam has secured a power purchase agreement for an 180 MW solar farm at its Zondereinde PGM mine to enhance energy independence and operational resilience. The solar farm is a strategic move to mitigate rising energy costs amid concerns over high electricity tariffs.
180 MW Solar Farm for Zondereinde PGM Mine
Northam, a leading producer of Platinum Group Metals (PGMs) and Chrome has announced a significant step towards energy independence by entering a power purchase agreement for an 180 MW solar farm. This solar project is set to be located at its Zondereinde PGM mine, situated on the western limb of the Bushveld Complex.
Northam's new 180 MW solar farm at Zondereinde PGM mine will enhance operational resilience and manage rising energy costs.
The initiative marks a major move by Northam to improve operational resilience and manage rising energy costs. Paul Dunne, the CEO of Northam highlighted the importance of this solar farm during the company's recent presentation on its robust annual production figures.
"This will improve operational resilience and our cost position," Dunne stated, emphasizing that the provision of power continues to present risks. This concern is particularly acute in light of expectations that State power utility electricity tariffs will likely remain above the consumer price index.
Solar Farm to Boost Energy Security
The solar farm will be constructed adjacent to Northam's metallurgical complex at Zondereinde. It is designed to feed power directly into the Zondereinde system, bypassing the national grid. This "behind the meter" setup ensures that the energy generated by the solar farm cannot be curtailed and does not incur wheeling charges.
The upcoming solar facility is expected to generate 220 GWh per year to meet approximately 15% of Northam's energy requirements. The Zondereinde mine-and-metallurgical complex — which operates at deep levels — consumes about a quarter of the group's total energy. The new solar farm will thus play a crucial role in securing a steady and reliable energy supply for Northam's operations.
Northam's commitment to renewable energy does not stop with the solar farm at Zondereinde. Damian Smith, Northam’s renewables programme lead, discussed the company’s broader renewable energy strategy during a media roundtable. "We keep working on looking at other opportunities, whether they be solar or wind, and we’re also looking at batteries," Smith explained.
Operational Adjustments Amid Market Challenges
The development of the solar farm comes at a time when Northam is also making strategic adjustments to its operations in response to market conditions. Dunne acknowledged that the current market demands a cost response, prompting Northam to implement a moratorium on recruitment at the group level. This moratorium applies to all positions except those essential for safety and line production.
At Zondereinde, the long-dated Three Shaft surface infrastructure project has been delayed, and raise-boring activities have been reduced. Deepening development below 17 level ore tips has also been halted.
Similar adjustments have been made at other Northam sites. For instance, at the Booysendal mine, the South Merensky module has been halted, and the BS4 decline has been temporarily suspended. At the Eland mine, the Kukama decline has been restarted on a just-in-time basis with long-dated surface infrastructure projects delayed.
The 180 MW solar farm at Zondereinde is a significant step forward in Northam’s sustainability journey. By investing in renewable energy, Northam not only reduces its reliance on the national grid but also mitigates the impact of rising electricity costs on its operations. This solar farm is part of a broader strategy that includes exploring additional renewable energy sources and technologies.
As Northam continues to navigate the challenges of the mining industry, its focus on sustainability and cost management will be crucial. The solar farm at Zondereinde represents a bold move towards a more resilient and sustainable future for the company.