Pan African Resources beefs up renewable energy capacity
JOHANNESBURG – Pan African Resources is beefing up renewable energy capacity at its mines to improve supply and reduce production costs and its carbon footprint.
The mid-tier gold producer announced on Monday it was constructing a 10.5MW solar plant at its Barberton Mines’ Fairview operation that would result in electricity costs savings of about R40 million a year for the next 20 years.
The estimated cost of the Fairvest solar plant is R215-R220 million.
“Costs will be quantified further closer to the time as there are quite a few variables to consider, including material costs and the highly volatile exchange rates,” said Hethen Hira, Head of Investor relations at Pan African.
“We have raised enough debt facilities for our in-house projects as announced with the recent sustainability bond.”
Pan African has also entered into a power purchase agreement with Sturdee Energy for a wheeled renewable energy solution of 40MW from its Bela-Bela Project solar PV facility in Limpopo to any of the group’s operations.
The initial power purchase agreement term is 10 years, with the option to extend it for another five years.
Provide
The Bela solar PV facility is expected to provide about 112 399MW/h of renewable energy per year to Pan African, resulting in an estimated R646 million in savings over 10 years and R884 million over a 15-year horizon.
There may also be further tariff savings if this 40MW Bela project is scaled up to its permitted 75MW of solar power, according to Pan African.
The Bela project, which will be constructed in 2025, will be funded by third party financial institutions 12MW.
Another feasibility study is under way to build a solar PV renewable energy facility for the Mogale tailings retreatment plant.
“Our solar PV renewable energy initiatives are key components in progressing Pan African’s renewable energy strategy and in achieving our sustainability targets,” CEO Cobus Loots said.
Assist
“In addition to measurably reducing the group’s carbon emissions, these projects will assist in stabilising the electricity supply to our operations, while also realising commensurate cost savings that will assist in reducing our overall AISC (all-in-sustaining costs) per ounce of production in the longer term.”
Pan African’s initiatives come at the time when SA is alternating between stages 4 and 6, resulting in lost production for miners.
The company’s share price was little changed at R4.48 in early afternoon trade on the JSE, but up 34 per cent so far in 2023.