Unavoidably, as mining companies extract minerals from the ground that the world needs, they disturb land, consume natural resources and generate waste, including carbon emissions.

Pan African Resources notes, however, that it has proven its ability to apply technical skill and innovation to challenging problems. The miner is also currently addressing its footprint in all these areas to ensure that operations are sustainable for the long term for the benefit of future generations.

In fact, in implementing its own solar photobvoltaic (PV) powered mining, Pan African has been one of the first movers among South African miners to seize the opening offered by the lifting of legislative caps on private energy generation.

Essential Decarbonisation

The company points out that reliance on South African State-owned power utility Eskom has presented several problems. “Eskom sources most of its power from coal, which exacerbates the company’s Scope 1 emissions. Over the past decade, Eskom power has become increasingly unstable and expensive.”

Unstable supply not only disrupts Pan African’s production, but poses a risk to employees – particularly underground – and damages high-value equipment.

“Investing in our own renewable-energy solar plants enables us to reduce our reliance on diminishing natural resources in a sustainable manner and limit our carbon footprint. These investments improve our financial performance because they enhance productivity, reduce downtime and bring down costs. By generating our own power, we free up capacity on the national grid for other businesses and households to use.”

These investments also enhance Pan African’s attractiveness to fund managers with a focus on sustainability. That is evident from the investment by asset manager Blackrock to acquire 30-million shares in Pan African Resources.

Creating the Blueprint

The miner’s first move into solar for mining was a $10.7-million investment in a 10 MW solar PV plant at Elikhulu in Evander, in Mpumalanga, using rehabilitated land which formerly included a mine hostel.

The company’s engineering, procurement and construction contractor was a local subsidiary of juwi Renewable Energies. Pan African will operate this plant itself after a brief operation and maintenance contract with juwi, during which Pan African employees are being trained to operate it.

The Elikhulu solar PV plant is contributing a significant portion of the mine’s energy requirements. It will produce 25 000 MWh of electricity a year, and save 26 000 t of carbon dioxide emissions a year – about 5% of its carbon footprint.

This plant saves the company R3-million a month, or R36-million a year, in electricity bills – at current Eskom tariffs.

“We recently completed a feasibility study to increase the capacity of this plant to 22 MW, which would allow it to supply Evander’s underground operations with power. During the construction phase, juwi used ten local contractor companies, providing 202 local job opportunities. The skills developed by this project will be called upon for the 12 MW expansion phase.”

Fundamental Business Strategy

The company’s next project will be an 8 MW solar PV plant at Barberton mines.

Pan African has completed the environmental and feasibility studies for the plant, as well as completed permitting and obtained board approval, and construction started in September 2022.

With the recent closing of the acquisition of Mogale Gold and Mintails South Africa Soweto Cluster transaction, Pan African will be investigating the potential to install solar PV generation for those operations as well.

“Ultimately, we are targeting to have 30 MW of solar capacity in place by 2024, which would produce about 75 000 MWh/y, save about R100-million a year in electricity bills and reduce our yearly carbon dioxide emissions by 80 000 t.”

Beyond solar, the company is also investigating battery technology, other renewable-energy projects including wind farms – which may be off site – as well as the potential to wheel power into the national grid and earn carbon credits for its operations.