- Northam Platinum Group is pleased to announce the successful finalisation of a Power Purchase Agreement (“PPA”) with an Independent Power Producer (“IPP”), in respect of an 80MW solar power plant to service its Zondereinde operation near the town of Thabazimbi in the Limpopo province.
- As the largest behind-the-meter solar PV plant developed to date in South Africa on a PPA basis, this marks an exciting milestone in the local renewable energy landscape.
This plant will deliver 220GWh of energy per year directly into Zondereinde’s mining and smelting operations, independent of the Eskom grid, reducing the operation’s carbon footprint by 22%. Further benefits include significant cost savings and reduced power supply risk. Construction has commenced with power expected to be available from December 2025.
The IPP comprises a consortium including the STANLIB Infrastructure Fund II, Royal Bafokeng Holdings Proprietary Limited and Energy Group. Project finance is being provided by Nedbank Limited (acting through its Nedbank Corporate and Investment Banking Division) and The Standard Bank of South Africa Limited (acting through its Corporate and Investment Banking Division).
The project is part of a broader strategy to reduce Northam’s environmental impact whilst securing the supply of bulk services. This includes a reduction in carbon intensity by 60% from a 2019 baseline by 2030, whilst improving power availability and decreasing overall electricity costs.
Northam is at an advanced stage of progressing additional renewable energy projects in a dynamic and rapidly changing technological and legislative environment. This includes solar, wind and battery storage initiatives.
Paul Dunne, Northam’s Chief Executive Officer, welcomed the PPA, stating that, “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 implicit in this initiative add additional resilience to our world-class Zondereinde mine”.
Author: Bryan Groenendaal
