Energy and Mines Magazine Issue 28

Africa Special

Issue

28

March

2021

10 Renewables for African Mines Projects Announced in the Last 6 Months South Deep Solar Gets Go Ahead Ivanhoe Mines on Renewables De Beers: The Road to Carbon Neutral

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10 Recently Announced Renewables in Mining Projects in Africa There is a growing realization amongst African miners, regulators, governments and financiers that an energy shift is an inevitable result of growing domestic and international pressure to decarbonize mining, contain costs and improve energy security.

The last 12 months have witnessed a surge in the number of renewables for mines projects. We list a number of interesting projects here - many of which will be featured in the Energy and Mines Africa Virtual Summit, May 4-6, 2021

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Mining Company:

Gold Fields Mine: South Deep, South Africa Date announced: Feb 26, 2021 (NEERSA approval) Renewable details: 40 MW Solar PV

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old Fields Limited’s proposed 40 MW solar PV plant at its South Deep gold mining operation in Gauteng, South Africa finally received NERSA approval in late Feb 2021. Construction will begin “as soon as possible” Gold Fields has been looking to set up the solar plant since 2017. The South Deep mining operation is highly energy-intensive and the company wants to reduce its carbon footprint as well as mitigate the power supply problems from the South African grid. According to a Gold Fields presentation in 2019, power tariffs have surged 500% over the past 11 years, while the industry suffered frequent rotating power curtailments.

The solar plant will deliver around 20% of the South Deep mine’s electricity needs and help curb operational losses from frequent power outages.

“The solar power plant will increase the reliability and afford-ability of power supply to South Deep, ultimately enhancing the long-term sustainability of the mine,” Nick Holland, Chief Executive Officer, Gold Fields said in a statement.

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Mining Company:

Pan African Resources Mine: Evander Mine, South Africa Date announced: Dec 15, 2020 Renewable details: 9.975 MW Solar PV

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ual-listed gold producer Pan African Resources has engaged juwi South Africa for the construction of a 9.975MW solar photovoltaic plant on land owned by its Evander Mines. The plant will provide about 30% of the power requirement of the company’s Elikhulu tailings retreatment operation during daylight hours.

The Evander Mines solar photovoltaic plant will improve power reliability, save an expected 26,000 tons of CO2-e, and materially reduce electricity costs at the Elikhulu operation. It will utilize bi-facial module technology to maximize its yield. To be built at a total cost of ZAR140 million (US$ 9.45 million), the solar project will pay back its investment in less than five years.

“The Evander Mines solar photovoltaic plant is integral to the Group’s purpose of “Mining for a Future” and pursuing ESG initiatives that go beyond compliance,” said Cobus Loots, CEO, Pan African.

“This plant will be one of the first of its kind in the South African mining space.” juwi South Africa will commence project construction in the first quarter of 2021, with power generation expected in the third quarter of 2021.

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Mining Company:

Bushveld Energy/ Bushveld Minerals

Mine: Vametco Alloys Mine Date announced: Dec 15, 2020 Renewable details: 3.5 MW Solar PV, BESS 1 MW/4 MWh

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ushveld Energy is a unit of Bushveld Minerals, a low-cost, vertically integrated primary vanadium producer that also owns the Vametco Alloys mine.

The proposed power plant will be the first commercial-scale hybrid project with Vanadium Redox Flow Batteries (VRFB) in the continent and the first ‘MW scale’ hybrid power plant for a mine in South Africa. It will boost the energy autonomy of the Vametco mine and reduce its CO2 emissions by more than 114,000 tons over 20 years. It will also showcase the role of vanadium as a long duration option in the global energy storage market.

The plant is an integrated power solution comprising a 3.5 MW solar photovoltaic plant and a battery energy storage system (BESS) that usesVRFBs of capacity 1 MW/ 4 MWh. The VRFB-BESS system will be supplied by Enerox Holdings Ltd. Bushveld Energy has selected Abengoa for the construction of the power plant.

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Mining Company:

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obex Resources Inc. is a Canadian mining company operating in gold production and exploration in West Africa. The Company operates the Nampala mine in Mali, which reached the commercial production stage on January 1, 2017.

Robex Resources Inc has engaged Vivo Energy to supply solar energy at its Nampala gold mine in Mali.

Robex Resources

The project comprises a 3.9 MWp photovoltaic power plant and a battery of capacity 2.6 MWh. These would be integrated with the existing thermal power plant using an energy management system.

Mine: Nampala Gold Mine, Mali

The use of solar energy will reduce the cost of each KW currently consumed by the mine by $0.04. That will further cut the mine’s production costs, already among the lowest in the world.

Date announced: Oct 27, 2020 Renewable details: 3.9 MW Solar PV, Storage 2.6 MWh

“Our mining clients are always looking for ways to reduce their operational costs and improve their sustainability,” said Khadidiatou Fall, General Manager of Vivo Energy Mali. “With this hybrid solar/ fuel solution, we can help them achieve both goals.”

“This energy will enable us to reduce our carbon impact by approximately 60,000 tonnes over ten years, and provide us with a complementary source of energy to stabilize our electricity production,” added Benjamin Cohen, CEO of Robex.

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Mining Company:

Syrah resources Mine: Balama Graphite Operation Date announced: Dec 22, 2020 Renewable details: 11.2 MW Solar PV, Storage 8.5 MWh

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yrah Resources Limited announced a MoU with Solarcentury Africa Limited to develop a solar and battery storage hybrid power system to work in conjunction with the existing diesel generation power plant at Balama in Mozambique.

The solar and battery storage system aims to reduce CO2 emissions and operating costs at Balama.

Solarcentury and Syrah have undertaken technical design and pricing analysis through 2020 for several solar and battery options at Balama, from which Syrah has chosen its preferred solution of 11.2MW solar with an 8.5MW battery, subject to final design.

The solar and battery installation will work in conjunction with the existing 15MW diesel generation power plant at Balama, which was chosen as a low risk power generation option for the initial establishment of operations at Balama.

The MOU establishes the terms and conditions under which Syrah and Solarcentury will continue with the development of the design, funding, construction and operation of a solar and battery installation under a build, own, operate and transfer arrangement.

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Mining Company:

Impala Platinum

Mine: Marula Platinum Mine Date announced: October 20 2020 Renewable details: 10 MW Solar

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hallenged with power security issues and the opportunity presented by the recent enabling regulation by the South African department of Minerals Resource and Energy allowing mines to look at alternative self-generation options, Impala Platinum issued an RFI for a proposed 10 MW solar power plant in October 2020.

In a recent Mining Weekly interview Implats COO Gerhard Potgieter said Implats was busy with a renewables study across all of its operations.

“We’ve already identified two areas for the generation of electricity. One is in Zimbabwe, where we would be able to put up a fairly large solar farm, and the other is at our Marula operations, where we are busy studying what the appropriate renewables site there would be. It’s something that takes time because of all the licensing, but we are busy preparing ourselves for more self-generation,”

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Mining Company:

De Beers Mine: Various

Date announced: Q4 2020/ Q1 2021 Renewable details: Wind / Solar / Hydrogen

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n various interviews and presentations De Beers have announced plans for renewable energy as part of their aim for carbon neutrality by 2030. For an interview in Energy and Mines Magazine, De Beers Head of Carbon Neutrality Kirsten Hund explained: “Renewable energy, and renewable electricity, is a crucial element in our strategy to reach carbon neutrality by 2030, which is built around Reduce energy intensity, Replace fossil fuels and Fossil Electricity, and Recover the remaining carbon emissions. We will replace the grid electricity through direct replacement of electricity, and the fossil fuels through battery systems, hydrogen fuel cells, green synthetic fuel production, etc all powered by or derived from renewable electricity.”

And with specific reference to solar in South Africa and Botswana and wind power in Namibia Kirsten Hund outlined the following: “The opportunity exists to develop a portfolio of renewable energy plants across the region taking advantage of the ‘best of the best”. The differences in latitude will allow us to extend the duration of solar power. If we can overcome regulatory hurdles, these resources can be integrated by wheeling across the Southern African Power Pool to the mutual advantage of all the countries in the region.”

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Mining Company:

Giyani Metals

Mine: K.Hill Manganese Project Date announced: Jan 18 2021

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oronto listed Giyani Metals Corp. announced the completion of a study for a solar plant for its K.Hill manganese project in Southern Botswana. Giyani is committed to building an environmentally sustainable operation and to have a positive impact for all of its stakeholders. The K.Hill site is surrounded by flat topography, which, coupled with the high amounts of annual sunshine, makes it highly attractive for solar power generation.

The study undertaken by Tetra Tech, reviewed three scenarios with increasing amounts of solar PV. Each scenario delivered cost savings to K.Hill, compared to using 100% grid power, but it was recommended Giyani commence with a 14 MW power plant with the view to upgrading to 48 MW or even 60 MW once regulatory approval is granted. This study is now in the feasibility stage

Renewable details: 14 - 60 MW

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Mining Company:

Centamin Plc Mine: Sukari Gold Mine, Egypt Renewable Energy Details: 30 MW Solar Date announced: June 2020, Completion expected 2021

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fter a 2019 feasibility study, Centamin plc, a gold mining company listed in London and Toronto, has decided to implement a 30MW AC solar power installation at its principal asset, the Sukari Gold Mine in Egypt. The mine is currently powered by captive generators that burn up to 100 million liters of diesel.

The study indicated that a minimum of 36MW DC / 30MW AC peak power hybrid solar plant would be the optimal capacity for an initial staged integration to the processing plant. Sukari is located in Egypt’s Eastern Desert, which enjoys some of the highest levels of solar irradiance globally, annualizing over ten hours a day of sunshine. Nevertheless, battery storage of 7.5MW is needed to manage start-up and shut down surges.

The solar project, which is scoped over 85 hectares, would cost $37 million and meet about 25% of Sukari’s energy needs. Its capacity can be expanded in the future if so required.

Annually, it would save 18-20 million liters of fuel and reduce CO2 emissions by 48,000 – 53,000 tonnes.

The project is expected to be completed by 2021 with payback in about three years.

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10 Mining Company:

Caledonia Mining Corporation

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old producer Caledonia Mining Corporation Plc has contracted with international renewable energy provider Voltalia for the construction of a 12MW solar power plant at its primary asset, the Blanket Gold Mine in Zimbabwe.

On successful commissioning, expected in the last quarter of 2021, the solar plant will provide about 27% of the mine’s total electricity demand.

The solar plant is a strategic investment to safeguard from any further deterioration in the quality of grid power that could force Caledonia to resort to additional diesel-generated energy for its operations.

Mine: Blanket Gold Mine, Zimbabwe Renewable Energy Details: 12 MW Solar PV Date: October 2020

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POWERING AFRICAN MIN

SPONSOR

ORGANISED BY

NES WITH RENEWABLES

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interview

MARTIN PREECE EXECUTIVE VICE PRESIDENT GOLD FIELDS SOUTH AFRICA

South Deep Solar Gets Go Ahead ADRIENNE BAKER DIRECTOR Energy and Mines

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old Fields has been looking to set up a solar plant at its South Deep mining operations since 2017.

The South Deep mining operation is highly energyintensive and the company wants to reduce its carbon footprint as well as mitigate the power supply problems from the South African grid. According to a Gold Fields presentation in 2019, power tariffs had surged 500% over the past 11 years, while the industry suffered frequent rotating power curtailments.

The Gold Fields solar proposal has been winding its way through South Africa’s licensing system for the past three years.

The application has become a poster child for illustrating how challenging it is to get a generation license after navigating Nersa’s bureaucratic processes. In February 2021 Gold Fields

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Scopes of work for construction and supply of equipment have been finalised and proposals for the supply of construction and equipment will be requested and awarded through a formal tender process.

MARTIN PREECE EXECUTIVE VICE PRESIDENT GOLD FIELDS SOUTH AFRICA

finally received approval for the project and aims to begin construction as soon as possible.

Shortly after the announcement, Energy and Mines spoke with Gold Fields South Africa’s Executive Vice President Martin Preeces about the project, the next steps and renewables at Gold Fields.

Energy and Mines: South Deep’s approval by NERSA is an important milestone for renewable energy for South African mines. Can you please update us on the next steps for the project?

Martin Preece: We are pleased with the announcement from the National Energy Regulator of SA (NERSA) and await the formal generation licence from them, which should be imminent. We will now finalise our submission to the Gold Fields Board Investment Committee and Main Board of Directors for their consideration and approval during March.

Once we have the approval the project will be initiated with site preparation work to start immediately. Scopes of work for construction and supply of equipment have been finalised and proposals for the supply of construction and equipment will be requested and awarded through a formal tender process.

EandM:What are your primary objectives in integrating 40MW of solar power at the mine?

MP: Gold Fields’ energy objectives are based on four pillars, energy must be reliable, available, cost effective and clean.

The 40MW solar project at South Deep meets all these requirements and will supply approximately 20% of the mine’s power requirements. Importantly from a South African perspective, given the current constraints on the national

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grid and escalating tariffs, the first three are very relevant to ensure our sustainability. The fourth is equally important as we play our role in leaving a positive legacy for subsequent generations by reducing our carbon emissions and meeting our commitment in terms of the Paris Climate Agreement accord. We are aiming to be carbon neutral by 2050 at the very latest.

EandM: What do you see as some of the main barriers that need to be addressed to allow for further integration of renewable energy for South African mines?

MP: On a macro scale, we need to overcome the obstacles that are preventing the wheeling of power, which would allow mining companies with multiple operations to pursue larger projects that have the benefit of scale and then be able to distribute surplus power via the national grid.

Furthermore, storage of generated energy is critical, should we want to move past 35% of our daily consumption. Right now, we do not have a cost effective standalone solution. The most effective “storage solution” is the national grid, where excess power could be fed into the grid to be used nationally during the day and then drawn down at night when the national grid has an excess of power.

South Africa needs further deregulation to allow generation and in particular self-generation to take off and to reduce pressure on the national grid. This will require balancing the needs of the national utility, Eskom, with that of industry for cost-effective, reliable power.

EandM: How does this project fit with Gold Fields’ broader carbon reduction goals?

South Africa needs further deregulation to allow generation and in particular self-generation to take off and to reduce pressure on the national grid.

MARTIN PREECE EXECUTIVE VICE PRESIDENT GOLD FIELDS SOUTH AFRICA 29

Agnew became the first gold mine in the world to derive over 50% of its power from renewable energy sources, mostly wind turbines supported by a solar plant and lowcarbon gas.

MARTIN PREECE EXECUTIVE VICE PRESIDENT GOLD FIELDS SOUTH AFRICA

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MP: Climate change is undoubtedly one of the defining global challenges society is facing today.

Gold Fields has made considerable progress in mitigating our contribution to climate change, through our efforts in energy savings and efficiency initiatives, as well as our significant investment in renewables. These initiatives not only secure lower emissions, but also ensure stable and cost-effective energy supplies for our mines.

During 2020, we commissioned renewable microgrids, supported by battery storage, at our Agnew and Granny Smith mines in Australia.

Agnew became the first gold mine in the world to derive over 50% of its power from renewable energy sources, mostly wind turbines supported by a solar plant and low-carbon gas. We have furthermore advanced plans to introduce renewables at Gruyere in 2021 and St Ives in 2023 (both in Australia), as well as at Salares Norte in Chile when it starts operating in 2023. The approval by NERSA for South Deep’s 40MW plant, will see us significantly raise the percentage of renewables in our Group energy mix from the 3% it was last year.

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interview

MARNA CLOETE PRESIDENT AND CHIEF FINANCIAL OFFICER IVANHOE MINES

The present and future role of renewables at Ivanhoe Mines ADRIENNE BAKER DIRECTOR Energy and Mines

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vanhoe Mines is a Canadian company with three projects in Southern Africa. They are focused on powering their mines primarily with electricity generated from clean, renewable energy sources, such as hydropower, solar and wind where applicable. The Kamoa-Kakula and Kipushi projects in the Democratic Republic of Congo are already using hydropowergenerated electricity, and they are looking at ways to incorporate solar power to augment grid-supplied power at all operations.

In this interview, Ivanhoe President Marna Cloete discusses the role of renewables at Ivanhoe Mines.

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We are working in partnership with Zijin Mining Group, in conjunction with the DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL), to fully-refurbished the Mwadingusha hydropower plant MARNA CLOETE PRESIDENT AND CHIEF FINANCIAL OFFICER IVANHOE MINES

Energy and Mines: What role do you see for renewable energy in meeting Ivanhoe Mines’ goal of producing the world’s “greenest copper”?

Marna Cloete: We are fortunate in the Democratic Republic of Congo (DRC) to have access to the country’s significant hydropower potential at both our Kamoa-Kakula Copper Project and Kipushi Zinc Project. Hydro-based electricity is a major advantage for any industrial project as we move toward “greening” our grids and global decarbonisation; as it provides stable, sustainable electricity that aligns with these key climate goals and metrics.

We are working in partnership with Zijin Mining Group, in conjunction with the DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL), to fully-refurbished the Mwadingusha hydropower plant, which is expected to deliver approximately 78 MW of power to the national electrical grid.

In December 2020, the 35-kilometre-long double circuit 220-kilovolt (kV) power line to Kamoa-Kakula was connected to the national electrical grid through the New Western Dispatch (NRO) substation in Kolwezi. Kamoa-Kakula’s main 220-kV substation is nearing completion and is expected to be energized by the end of March.

We will, of course, also explore additional renewable opportunities at both Kamoa-Kakula and Kipushi.

We are currently applying small-scale solar technologies for community and social projects and

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continue to explore ways to expand renewable applications and limit our environmental footprint.

EandM: Can you share some details on how you’re assessing options for wind and solar in Southern Africa, South Africa and DRC? MC: In South Africa, the location of our Platreef palladium, platinum, rhodium, nickel, copper and gold project, there are some very promising examples of mining companies beginning to roll-out solar initiatives to increase the use of renewable energy. For example, Gold Fields recently reported that energy regulators have approved plans to build a 40MW solar plant to replace coal-fired electricity at the South Deep mine west of Johannesburg.

We’re excited about the role Platreef could play in green technologies given its strategic mix of metals and are currently reviewing engineering plans to expedite development at the project.

MARNA CLOETE PRESIDENT AND CHIEF FINANCIAL OFFICER IVANHOE MINES 36

We’re excited about the role Platreef could play in green technologies given its strategic mix of metals and are currently reviewing engineering plans to expedite development at the project. So that gives us a great opportunity to explore the feasibility of renewable technologies in the mine design, and it’s great to see other operators providing examples of technology, like solar, working at the mine level.

EandM: Where are the gaps in the market for energy services and suppliers - what energy challenges are not being fully addressed?

MC: It seems that the largest emerging challenge in terms of renewable energy and green technologies relates mainly to electrical infrastructure and the power grids. We have seen this globally; everywhere from South Africa, to California and Texas in the United States. Many of these grid systems and related infrastructure are becoming quite old by modern standards and are clearly having issues with the transition to new technologies.

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There has been an acknowledgement by governments that this energy transition is going to take a significant amount of investment, perhaps more than the world had anticipated, and it seems like a lot of that capital is going to have to be committed to modernization and upgrading electrical grids to better sustain technologies that are, for a lack of a better phrase, “climate friendly”.

The complication in that regard is that we’ll require a significant amount of resources, including a vast supply of metals, to build the infrastructure to green the grid, so we’re going to need a lot of mining to complete that task.

And that puts Ivanhoe Mines in a very strategic position in the DRC because of that access to hydropower. We will mine ultrahigh-grade “green copper” with an industry-leading carbon emission profile.

In addition, due to the nature of our ore bodies at KamoaKakula, we will deliver around half of the tailings material back underground in the form of pasted backfill, which also gives us a small project footprint in comparison to other world-scale copper mines. So, if you take a holistic look at the environmental elements of Kamoa-Kakula, along with top-tier grades, we really don’t think there are many mines that can compete when it comes to producing low-impact copper.

In addition, due to the nature of our ore bodies at KamoaKakula, we will deliver around half of the tailings material back underground in the form of pasted backfill, which also gives us a small project footprint in comparison to other world-scale copper mines.

MARNA CLOETE PRESIDENT AND CHIEF FINANCIAL OFFICER IVANHOE MINES

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interview

KIRSTEN HUND HEAD OF CARBON NEUTRALITY DE BEERS GROUP

The Role of Renewable Energy in De Beers’ Carbon Neutral Strategy ADRIENNE BAKER DIRECTOR Energy and Mines De Beers has a stated aim of carbon neutrality by 2030 and plans to achieve this with a broad range of initiatives and technologies including energy efficiency, clean fuels and green electricity generation. In advance of her presentation at the Energy and Mines Africa Virtual Summit, May 4-6, Head of Carbon Neutrality Kirsten Hund outlines the role renewables is set to play in the diamond miners’ energy transformation.

Energy and Mines: What role do you see for renewable energy in De Beers’ Group strategy to reach carbon neutrality by 2030?

Kirsten Hund: Renewable energy, and renewable electricity, is a crucial element in our strategy to reach carbon neutrality by 2030, which is built around Reduce energy intensity, Replace fossil fuels and Fossil Electricity, and Recover the remaining carbon emissions. Approximately 50% of our GHG emissions arise from 38

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The differences in latitude will allow us to extend the duration of solar power. If we can overcome regulatory hurdles, these resources can be integrated by wheeling across the Southern African Power Pool to the mutual advantage of all the countries in the region.

KIRSTEN HUND HEAD OF CARBON NEUTRALITY DE BEERS GROUP 8

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primarily coal-based grid electricity in Southern Africa, and the other 50% arise from the use of fossil fuels (i.e. Diesel and Marine Fuel Oil). Renewable electricity is an essential element in the solutions to decarbonise both inputs. We will replace the grid electricity through direct replacement of electricity, and the fossil fuels through battery systems, hydrogen fuel cells, green synthetic fuel production, etc all powered by or derived from renewable electricity.

EandM: Can you tell us a bit about current considerations for solar in South Africa and Botswana and wind power in Namibia?

KH: Southern Africa is blessed with some of the best renewable energy resources in the world. Namibia has incredible wind resources as well as solar, Botswana is covered (showered) by amazing sun resources and South Africa has a great mixed of both at various locations. The opportunity exists to develop a portfolio ENERGY AND MINES ENERGY MAGAZINE AND MINES MAGAZINE

of renewable energy plants across the region taking advantage of the ‘best of the best”. The differences in latitude will allow us to extend the duration of solar power. If we can overcome regulatory hurdles, these resources can be integrated by wheeling across the Southern African Power Pool to the mutual advantage of all the countries in the region.

EandM: What advice would you give energy providers looking to develop projects with miners in Africa?

KH: Africa has some of the best resources in the world, both renewable and non-renewable, and technically there are few obstacles. There is massive potential. Financially, storage is still a challenge, however the costs are reducing fast every year.

The focus needs to be on working together with the country Governments to overcome regulatory hurdles, firming up on offtake agreements and developing bankable projects together.

Renewable energy, and renewable electricity, is a crucial element in our strategy to reach carbon neutrality by 2030, which is built around Reduce energy intensity KIRSTEN HUND HEAD OF CARBON NEUTRALITY DE BEERS GROUP 417

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