South Deep Solar Gets Go Ahead - interview with Gold Fields South Africa EVP, Martin Preece

Gold 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 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 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?

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.