Modern Mining September 2022

GREEN MINING

a generation capacity of no more than 100 MW, were positively accepted by the market evi denced by some of mines outlining their plans to develop generation facilities that are even beyond the 100 MW and willing to obtain the necessary licences. Amith Singh adds that there are two types of renewable energy options – one option being the ‘behind the meter’ option which refers to renewable energy projects developed onsite that feed directly into mining operations via the mine substations, and the other option being wheeling, which refers to renewable projects connected to the grid at a different location that sells energy injected at that grid point to the min ing operation at an agreed tariff. “Renewable energy projects that are cur rently popular are wheeling contracted projects. These are renewable energy projects – located hundreds of kilometres away from the mine – which produce and feed renewable energy into the grid and deliver it to the mine through wheeling arrangements. As the majority of mining operations do not have access to the large tracts of land required for the roll-out of renewable energy projects or the expertise or resources for such a venture, they turn to solar PV independent power producers, often located in the Northern Cape, to generate the energy required. This power is then fed into the grid and miners reap the benefits of access ing green power. The traditional method of sourcing renewable energy sees miners opt to fund renew able energy projects from their own balance sheets, and seek out a suitable EPCM contractor to build the project which is then run by the mine itself.” With government lifting the threshold of renew able energy production to 100 MW per site, local major mining companies, such as Sibanye-Stillwater, Gold Fields and Anglo American, have been quick off the mark to roll out solar PV energy projects. In fact, diversified miner Anglo American, which has outlined its plan to secure 100% renewable elec tricity supply for all its operations in South America, recently signed a memorandum of understanding with Électricité de France (EDF) to develop a regional renewable energy ecosystem (RREE) in South Africa, aimed at meeting the miner’s operational electricity requirements through the supply of 100% renewable electricity. The partnership will see the company imple menting 3 – 5 GW of renewable electricity (solar and wind) and storage over the next decade as it targets carbon neutrality across its operations by 2040. “Nedbank’s aggressive drive to fund clean energy projects across both the country and the continent will see Africa and South Africa benefit by having a significantly reduced carbon footprint and thereby a sustainable future going forward,” con cludes Nivaash Singh. 

South African energy landscape Although South Africa is making strides towards a clean energy transition, its reliance on coal for base load power means it continues to be one of the world’s biggest polluters. Local power utility Eskom has outlined plans to foster a greater energy mix which includes more renewable energy projects being rolled out. As it stands, South Africa’s established energy industry means that miners have the option to wheel energy across the grid as required. However, the constrained energy system which has for years seen the country plagued by loadshedding and, more recently, Stage 6 loadshedding, talks to issues of energy security. Energy constraints, together with a significant mandate of achieving carbon neutral ity, are seeing miners and consumers alike adopting renewable energy solutions. “With South Africans affected by loadshedding and above-inflation electricity price increases, min ing houses are accessing a mixture of greener, more sustainable and cost effective (i.e. lower tariffs) electricity generation options. Moreover, the govern ment’s move to allow 100 MW generation capacity, without the need for a generation licence, has seen an increasing number of mining houses move with speed to develop generation facilities or to purchase ‘green’ power from Independent Power Producers to supplement the current power they purchase from Eskom. This will pave the way for lowering South Africa’s carbon footprint and ultimately work in favour of achieving carbon neutrality over the coming years. This transition to renewable energy is extremely encouraging,” says Amith Singh. According to Amith Singh, the amendments to Schedule 2 of the Electricity Regulation Act, which provide an exemption for generation facilities with

Renewable energy is fed into the grid and delivered to a mine through wheeling arrangements.

34  MODERN MINING  September 2022