Northam signs debut renewable power deal, with others in pipeline

NORTHAM Platinum said on Friday it had agreed to buy solar power for its Zondereinde mine reducing the operation’s carbon footprint by just over a fifth.“Northam is committed to sustainably reducing the environmental impact of our operations, and this, our first major renewable energy project, represents a significant milestone,” said Paul Dunne, CEO of Northam.The company also disclosed that other power purchase agreements with renewable energy providers were in the pipeline “Northam is at an advanced stage of progressing additional renewable energy projects,” it said.Supply to Zondereinde will be from a 80MW solar power plant near Thabazimbi from December next year. Construction of the plant was currently underway.Northam has targeted a reduction in carbon intensity by 60% from a 2019 baseline by 2030, whilst improving power availability and decreasing overall electricity costs. Future power purchase agreements would be with suppliers of solar, wind and battery storage initiatives, it said.The independent power producer for Zondereinde comprises a consortium including Stanlib Infrastructure Fund II, Royal Bafoking Holdings and Energy Group. Project finance is being provided by Nedbank and Standard Bank.Northam said other benefits of today’s agreement included cost savings and reduced power supply risk, although Eskom, the state-owned utility, has improved the stability of the power grid in the last six months. On the downside, Eskom also has an application in place with the authorities to increase tariffs by as much as 44%.On Wednesday, Eskom CEO Dan Marokane defended the application, saying the company had to reinvest in order to protect baseload supply and amid R80bn in unpaid bills, largely comprising of municipal arrears. “I know it is an emotive subject, but we need to deal with it once and for all,” Marokane said.Gwede Mantashe, South Africa’s mines minister, suggested at the Joburg Indaba conference on Thursday that miners ought to consider linking electricity tariffs to commodity prices. Tariffs would rise and fall depending on the ruling price of metals mined in a replication of an agreement Gencor first formed with Alusaf in the Eighties.“We said let’s talk about that and also let’s even talk about a tax holiday for beneficiation,” Mantashe said of initial talks with mining companies. “Think it through. Bring a proposal that is sustainable and we will listen to you.“I have already started (talking) to the Minister of Electricity. He is favourable to that. It is essential that the industry participate fully in this discussion.“We are convinced that there can be no industry that works without partnering between the Government and the private sector. It is not about demands on one another. It is about partnering to get the best results,” he said.The post Northam signs debut renewable power deal, with others in pipeline appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.comWeiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com