The road to bankability for mine energy projects MELODIE MICHEL REPORTER Energy and Mines
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enewable energy projects are undeniably growing in popularity in the African mining sector. Among recent announcements, Anglo American revealed its intention to expand solar generation at the Mogalakwena platinum mine from 80 MW to 300 MW, and Gold Fields received preliminary approval for a 40 MW solar plant at the South Deep gold mine, both in South Africa. In general, the mining sector’s drive to decarbonize energy sources is met with great enthusiasm from lenders, who are also pushing their own sustainability agenda. “There’s a big drive to select green projects, and if you were to come as Gold Fields wanting to do 40 MW of solar PV, there’s not a single bank that would not jump on the chance to finance you,” says Lungile Mashele, Energy Specialist at the Development Bank of Southern Africa (DBSA). But the reality is that despite this common appetite, the road to bankability is not always straightforward for renewable energy projects at African mines. There are many reasons for this disconnect, among which regulatory inefficiencies and a certain lack of clarity
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ENERGY AND MINES MAGAZINE
