Northam has secured a power purchase agreement for an 180 MW solar farm at its Zondereinde PGM mine. This strategic move is designed to enhance energy independence, improve operational resilience, and mitigate rising energy costs amid concerns over high electricity tariffs.
180 MW Solar Farm for Zondereinde PGM Mine
Northam, a leading producer of Platinum Group Metals (PGMs) and Chrome, has announced a significant step toward energy independence with a power purchase agreement for a new 180 MW solar farm. The project will be located at its Zondereinde PGM mine, situated on the western limb of the Bushveld Complex.
This project is a major move by Northam to improve operational resilience and manage rising energy costs. During a recent presentation on the company’s robust annual production figures, Northam CEO Paul Dunne stressed the importance of the solar farm.
“This will improve operational resilience and our cost position,” Dunne stated, noting that power provision continues to present significant risks. This concern is especially acute, as the state power utility’s electricity tariffs are expected to remain above the consumer price index.
Solar Farm to Boost Energy Security
The solar farm will be constructed adjacent to Northam’s metallurgical complex at Zondereinde and is designed to feed power directly into the mine’s system, bypassing the national grid. This “behind the meter” setup ensures the energy generated cannot be curtailed and does not incur wheeling charges.
The upcoming solar facility is expected to generate 220 GWh per year, meeting approximately 15% of Northam’s total energy requirements. Since the deep-level Zondereinde mine-and-metallurgical complex consumes about a quarter of the group’s total energy, this new solar farm will play a crucial role in securing a reliable power supply for its operations.
Northam’s commitment to renewable energy extends beyond the Zondereinde solar farm. During a media roundtable, Damian Smith, Northam’s renewables programme lead, outlined the company’s broader strategy. “We keep working on looking at other opportunities, whether they be solar or wind, and we’re also looking at batteries,” Smith explained.
Operational Adjustments Amid Market Challenges
The development of the solar farm coincides with Northam making strategic adjustments to its operations in response to market conditions. Dunne acknowledged that the current market demands cost-cutting measures, prompting the company to implement a moratorium on recruitment at the group level. This moratorium applies to all positions except those essential for safety and line production.
At Zondereinde, several projects are being adjusted. The long-dated Three Shaft surface infrastructure project has been delayed, raise-boring activities have been reduced, and deepening development below 17 level ore tips has been halted.
Similar measures are in place at other Northam sites. At the Booysendal mine, the South Merensky module has been stopped and the BS4 decline is temporarily suspended. Meanwhile, at the Eland mine, the Kukama decline has restarted on a just-in-time basis, with other long-dated surface infrastructure projects also delayed.
The 180 MW solar farm at Zondereinde marks a significant step forward in Northam’s sustainability journey. By investing in renewable energy, Northam is reducing its reliance on the national grid and mitigating the impact of rising electricity costs. This project is a key part of a broader strategy to explore additional renewable energy sources and technologies.
As Northam continues to navigate the challenges of the mining industry, its focus on sustainability and cost management will be crucial. The solar farm at Zondereinde represents a bold move toward a more resilient and sustainable future for the company.
