JOHANNESBURG (miningweekly.com) – In a major boost for sustainable mining and South Africa’s clean energy ambitions, Mzansi Energy Consortium has signed a 12-year power purchase agreement with Palabora Mining Company (PMC) in Limpopo province.

Together, Mzansi and PMC will develop a large private renewable energy project, along with South Africa’s first grid-forming project. 

PMC’s copper operations include an underground block-cave mine, a concentrator, a copper smelter with anode casting facilities and an associated acid plant, an electrolytic refinery tank house, a rod casting plant, and by-product recovery plants.

Producing about 60 000 t of refined copper a year, the company supplies South Africa's domestic market as well as the export market.

In addition to copper ore, PMC has an opencast vermiculite mining operation and recovery plant. Its industrial minerals division produces the vermiculite and markets the hydrous phyllosilicate mineral through US, UK and Singapore marketing outlets.

Other by-products are magnetite, nickel sulphate, anode slimes, and sulphuric acid.

The mine owes its origins to the distinctive Palabora Igneous Complex rock formation of the Ba-Phalaborwa region.

Close to the Kruger National Park, PMC, headed by CEO Guangmin Wei, is actively involved in wildlife management and cultural heritage programmes to promote sustainability.

The solar site is outside PMC’s operational area to avoid interference with the Kruger National Park’s protected wildlife. The environmental-impact assessment also addresses the region’s high soiling levels.

SUSTAINABLE ENERGY

The 12-year Marula Green Power initiative will deliver 132 MWp of solar PV capacity, a 360 MWh battery energy storage system, and a dedicated 132 kV transmission line to wheel clean, green power to PMC’s mining operations. The grid-forming solution will provide stable, dispatchable electricity while supporting South Africa’s broader energy transition, the companies stated in a media release to Mining Weekly on Tuesday, June 17.

PMC asset management, safety, health, environment and quality executive manager Itumeleng Ngoae drew attention to the wheeled solar power and battery storage being aligned with carbon-emission and operating-cost goals, while simultaneously strengthening community development and sustainable mining.

“Partnering with Huawei, we’ve adopted an integrated factory-to-field model that shares technology risk across the lifecycle, from design through to operations,” Mzansi Energy Consortium COO Wessel Wessels, who is also CEO of Journey2Green, pointed out.

“We expect financial close in Q4 2025, construction to begin shortly thereafter, and commercial operations to commence in early 2027. This project supports our long-standing commitment to South Africa’s energy transition and will deliver significant carbon reduction and grid stability benefits,” Mzansi Energy Consortium CEO Tsatsi Mahlatsi stated.

Mzansi Energy Consortium chief marketing officer Tumi Mogoera emphasised the project’s inclusivity: ”Matching this project to applicable socio-economic needs was key. Our localised development model ensures inclusive benefits during all project phases – feasibility, construction, and operation. We’ve committed to equity ownership for five communities, creating up to 750 short-term jobs and over 30 permanent roles, with strong support for local SMMEs.”

Since 2023, community engagement has been a core focus, with the project underscoring how renewable energy can uplift local communities and preserve natural ecosystems.

Palabora has been in operation since 1956. The mining production footprint is relatively small, measuring 650 m in length and 200 m wide, with 20 production crosscuts and 320 draw points. With the coarse fragmentation of the orebody, considerable secondary breaking is required to treat oversize and to keep ore flowing through the draw points for the loaders to haul.

The construction of the underground mine was completed in October 2004 when the twentieth crosscut was brought into full production. By May, 2005 the mine was consistently achieving 30 000 t/d.

Rand Merchant Bank has been appointed mandated lead arranger for the project’s debt financing.