South Africa: Finalization of an agreement for an 80 MW solar power plant

Northam has signed a Power Purchase Agreement (PPA) with an independent power producer for an 80 MW solar power plant to supply its Zondereinde operation in Limpopo.

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Northam announced the successful finalization of a Power Purchase Agreement (PPA) with an Independent Power Producer (IPP) for an 80-megawatt (MW) solar power plant intended to power its Zondereinde operation, located near Thabazimbi in Limpopo province. This initiative is part of the company’s strategy to reduce its carbon footprint and secure its energy supply.

The solar power plant will produce 220 gigawatt hours (GWh) of energy per year, directly fed into Zondereinde’s mining and smelting operations, independently of the Eskom grid. This energy independence will reduce the operation’s carbon footprint by 22%, while generating significant cost savings and reducing power supply risks. Construction work has already begun, with commissioning expected in December 2025.

Project Partners and Financing

The Independent Power Producer (IPP) consists of a consortium including the STANLIB Infrastructure Fund II, Royal Bafokeng Holdings Proprietary Limited, and Energy Group. Project financing is being provided by Nedbank Limited, acting through its Nedbank Corporate and Investment Banking Division, and The Standard Bank of South Africa Limited, through its Corporate and Investment Banking Division. This strong financial collaboration ensures the viability and success of the project.

Northam’s Environmental and Energy Strategy

This project is part of Northam’s broader strategy to reduce the environmental impact of its operations while ensuring the supply of bulk energy services. The goal is to cut carbon intensity by 60% from the 2019 baseline by 2030, while improving energy availability and lowering overall electricity costs. This approach highlights Northam’s commitment to sustainable and responsible practices.

Future Development in Renewable Energy

Northam is also at an advanced stage in developing additional renewable energy projects in a rapidly evolving technological and legislative environment. These initiatives include solar, wind, and battery storage projects aimed at diversifying the company’s energy portfolio and enhancing its resilience against energy market fluctuations.

Statements from the Chief Executive Officer

Paul Dunne, Chief Executive Officer of Northam, welcomed the signing of the PPA, stating: “Northam is committed to sustainably reducing the environmental impact of our operations, and this, our first major renewable energy project, represents a significant milestone. The environmental, operating cost, and energy security benefits inherent in this initiative add additional resilience to our world-class Zondereinde mine.”

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