Platinum miner Northam signs wheeling PPA for 140MW wind power

• Platinum miner, Northam, has signed a Power Purchase Agreement (“PPA”) with an independent power producer (IPP) consortium including G7 Renewable Energies Proprietary Limited and Cennergi Holdings Proprietary Limited, a subsidiary of Exxaro Resources Limited, for energy supply from a 140MW wind farm, in a wheeling arrangement.

This is the second significant renewable energy deal for Northam, following the finalisation of a PPA in respect of an 80MW solar power plant to service its Zondereinde mine.

The wind farm is located close to Sutherland in the Western Cape and is anticipated to deliver 460GWh of energy per year, wheeled using the Eskom grid, to the group’s three mining and processing operations. Construction of the wind farm will commence immediately, with power being available in the 2027 financial year.

The combination of the solar and wind power plants will reduce the group’s carbon footprint by up to 45%, while providing substantial energy cost savings and improving security of power supply.

Project finance is being provided by Nedbank Limited (acting through its Nedbank Corporate and Investment Banking Division), Standard Bank Limited and Absa Bank Limited.

The project is part of a broader strategy of reducing Northam’s environmental impact while improving business resilience through securing the supply and reducing the cost of bulk services.

Northam is progressing other renewable energy projects in a dynamic and rapidly changing technological and legislative environment. These include additional solar and battery storage initiatives.

Author: Bryan Groenendaal