This move aligns with a broader trend among South African mining companies, who are increasingly opting for cleaner energy sources to power their operations.
Long-Term Power Purchase Agreement for Renewable Energy
Tharisa, a mining company listed on the Johannesburg and London stock exchanges, announced on July 25th a long-term power purchase agreement (PPA) to secure renewable energy for its South African mine.
Harnessing Wind and Solar Power
The 15-year agreement was signed with Etana Energy Proprietary Limited. Under the terms of the PPA, Etana will supply up to 44% of the Tharisa mine’s electricity demand using energy generated from wind and solar farms located in the Western Cape and Northern Cape provinces, utilizing the existing electricity transmission grid.
Reducing Reliance on Fossil Fuels
“This second major renewable energy project is a natural progression in our quest to reduce our reliance on fossil fuels and a key component in creating the sustainable resource company of the future,” said Lucien Matthews, Tharisa’s Head of Special Projects. “With well-established partners in the renewable energy sector, I am confident we will achieve and exceed our carbon emission reduction targets, both in terms of quantity and timeline [2030].”
Cost Management and Renewable Energy Certificates
This transaction will enable Tharisa to better manage its electricity costs and benefit from renewable energy certificates generated through the agreement.
The project will complement a 40 MW solar power plant, developed by TotalEnergies Renewables South Africa Proprietary Limited and Chariot Transitional Power South Africa Proprietary Limited, designed to provide 30% of Tharisa’s energy needs.