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JSE-listed diversified resources group Exxaro Resources has declared a total ordinary dividend for the 2021 financial year of R32.52 apiece, up 72% compared with the prior year.

Outgoing CEO Mxolisi Mgojo attributes the group’s solid performance to a committed delivery of strategic priorities and the company having taken decisive action in a dynamic environment.

Some logistical challenges, including rail capacity constraints, persisted throughout the financial year under review and continue to impact on coal volumes currently.

Exxaro recorded a 37% decline in its export coal volumes to 7.6-million tonnes for 2021, owing to logistics constraints.

Incoming CEO Nombasa Tsengwa expects these challenges to continue throughout this year, but affirms that discussions are under way, at industry level, with Transnet to resolve the rail challenges.

She says the challenges experienced by Transnet Freight Rail are systemic in nature and require a concerted effort, together with government, which will take time.

Marketing manager Sakkie Swanepoel elaborates that sabotage, cable theft and vandalism along Transnet’s rail lines increased over the last few years and that this requires “a lot of support and effort from the private sector and government”.

“The availability of locomotives is also an issue. Transnet has not been able to procure the necessary spares, owing to legacy issues. The State-owned freight utility is trying to retrofit spares on those locomotives that need components.

“Transnet is also embarking on a programme to source local suppliers for some of these spares, which takes time. We are hopeful that towards the end of the year we should see good progress on those fronts,” he notes.

Meanwhile, market fundamentals for coal remained strong for most of 2021. Mgojo notes that the coal price declined towards the end of the year and resulted in Exxaro’s export price achieved averaging $124/t in 2021.

Tsengwa points out that Exxaro could not fully capitalise on the healthy demand for its suite of products and the high thermal coal price as a result of the railway issues.

However, strong commodity prices nonetheless supported a 46% year-on-year increase in Exxaro’s core earnings before interest, taxes, depreciation and amortisation (Ebitda) to R10.7-billion.

Net operating profit totalled R9.7-billion for the year, compared with net profit of R4.8-billion for 2020.

After adjusting for noncore items, core headline earnings per share (HEPS) amounted to R46.83 for the year under review, compared with core HEPS of R29.73 for 2020, which was partly owing to a decrease in the weighted average number of shares to 247-million, after Exxaro undertook a R1.5-billion share repurchase programme.

Tsengwa mentions that the company achieved a record fatality-free performance of five years and achieved a lost-time injury frequency rate of 0.08.

The company continues with its portfolio optimisation, the value maximisation of its coal assets and pursuing opportunities in the low-carbon transition.

To this end, Exxaro is aiming for a 40% reduction in Scope 1 and 2 emissions by 2025 and maintains its leading environment, social and governance (ESG) rating on the Financial Times Stock Exchange Group Russel ESG Index.

Exxaro is planning to develop renewable energy generation capacity at all of its mines, which will comprise 200 MW of developments.

Mgojo will be retiring in July and tells Mining Weekly he will endeavour to remain involved in the mining industry after taking a break to spend time with family.

COAL

Coal production volumes across all Exxaro mines (excluding buy-ins) decreased by 10% year-on-year to 42.2-million tonnes, mainly owing to the impact of the logistical and market constraints, as well as the company selling its Exxaro Coal Central noncore operation.

Coal revenue increased by 13% year-on-year, largely driven by an increase in revenue from its commercial mines as higher sales prices were achieved in all markets.

Higher domestic sale...

The decarbonising of the global economy to prevent climate change is going to create the greatest investment opportunity of our lifetime.

It will also leave behind the companies that do not adapt – regardless of what industry they are in.

Sibanye-Stillwater CEO Neal Froneman on Thursday quoted these words of Blackrock CEO Larry Fink.

“I think Larry Fink is spot on,” said Froneman after the presentation covered by Mining Weekly that highlighted a stunning set of record-breaking financial results and the declaration “class-leading” dividends. The Johannesburg- and New York-listed company had R11.5-billion net cash in hand as of December 31.

Being a force for good is central to the enhanced strategy of Sibanye-Stillwater, which has already made considerable progress on its own journey towards carbon neutrality, with one solar project in the bag and a total renewables portfolio of 557 MW of solar and wind energy on the way.

building a green metals portfolio is based on its strategy of building a climate-change resilient business.

Battery metals, together with the platinum group metals, are poised to provide significant green metals portfolio, which already take in investments in lithium and nickel producing concerns.

Sibanye-Stillwater intends to complement that with other metals such as copper, perhaps manganese, and uranium, which is a by-product of the gold it mines.

As it increases its exposure to the circular economy, it has advanced its thinking on recycling as well as on mine waste retreatment.

Sibanye-Stillwater energy and decarbonisation head Jevon Martin said as a force for good, Sibanye-Stillwater had a role to play in the urgent global response to the threat of climate change.

“As such, we have aligned our governance strategy and risk management and targets across the group to align with the Task Force on Climate Financial Disclosures,” said Martin

First and foremost, green metals are produced that support the reduction of greenhouse gases and the reversal of climate change.

Through the introduction of demand-side energy management, renewable energy, electrification, and fuel switching opportunities, including green hydrogen, it believes it will be able to demonstrate an active decarbonisation pathway, which will be converted internal annual carbon budgets to inform the long-term incentive plan.

Recognising that there will be hard-to-abate emissions towards the end of its carbon neutral journey, a carbon offset strategy has been compiled to generate the required offsets to neutralise the remaining emissions.

Combining these elements presents a definitive pathway through to carbon neutrality supported by internal carbon budgets to drive decarbonisation and deliver on commitments.

Due to the infrastructure and extensive energy requirements of South African operations, combined with the carbon intensive electricity supply from Eskom, 93% of the company’s greenhouse gas emissions emanate from grid supplied electricity.

“Eskom also continues to pose a risk to our business through above inflation tariff increases and unreliable electricity supply.

“The extensive electrification of operations, however, presents an opportunity to mitigate these risks and accelerate decarbonisation through the deployment of renewable energy,” said Martin.

Relaxing of regulatory requirements and anticipated ability to trade electricity in South Africa, has allowed Sibanye-Stillwater to grow its portfolio of renewable projects to 557 MW, including solar and wind projects.

A local project developer has been appointed to provide 50 MW of solar photovoltaic electricity to its South African gold operations as well as two local project developers for three shovel-ready wind projects across South Africa.

Progress has also been made in the permitting and consents required for a solar project at South African platinum group metals operations.

“These projects have been structured to limit capital outlay whilst enabling significant decarbonisation and s...

Trade union Solidarity says it has informed precious metals miner Sibanye-Stillwater that it accepts the company’s latest offer of a 5% wage increase for members employed at Sibanye’s South African gold mines.

According to Solidarity, acceptance of a 5% increase means that Solidarity and its members are no longer in dispute with the company.

Solidarity emphasises that it is a member organisation and acts in accordance with the mandate from its members, despite the unease it may create among other parties.

“After a confidential voting process had taken place, an overwhelming majority of Solidarity’s members accepted the final offer of 5% and, on the basis of the members’ mandate, Solidarity had to withdraw from the dispute process and did not participate in the joint union vote to strike,” Solidarity Mining, Agriculture and Chemical Industry deputy general secretary Riaan Visser says.

Solidarity and three other mining unions have been in dispute with Sibanye’s Gold division over the proposed wage increase since December 2021.

Sibanye and the unions met again on February to try to resolve the dispute and Sibanye revised its offer to a 5% increase for miners, artisans and officials and an increase of R800 (including an additional R100 housing allowance) for Category 4 to 8 employees for the next three years.

“The bid to find consensus between parties is always at the heart of labour relations. Solidarity’s approach is always to find common ground instead of acting hostile towards other parties.

“We are satisfied with the offer and are happy that we could negotiate this increase for our members,” Visser concluded.

The other unions have, meanwhile, resolved to embark on a strike at Sibanye’s gold mines.

Sibanye tells Mining Weekly that the other unions have just completed a balloting process overseen by the CCMA, and would inform the company of the outcome on March 4.

In response to JSE- and NYSE-listed precious metals miner Sibanye-Stillwater backing out of its acquisition of the Santa Rita nickel and Serrote copper mines, in Brazil, the seller Appian Capital has served Sibanye with a notice of claim for what it says is the unlawful failure to close the acquisition.

The acquisition would have involved Sibanye acquiring Atlantic Nickel and Mineracao Vale Verder, the operating companies of the mines, for $1-billion and a 5% net smelter royalty to Appian over future production.

While Sibanye cited its reason for the termination of the acquisition as being a geotechnical event at Santa Rita having a material and adverse impact on its financial conditions, properties, assets, liabilities and operations of the mine, Appian says the instability had minimal impact on the mine and these types of occurrences are expected in mature mining operations.

Appian elaborates that the geotechnical instability – which was a crack that formed a wedge-shaped rock mass – affected less than 1% of the total surface area of the openpit mine and points out that daily ore mined continued to exceed levels of daily ore mined before the event.

The mining investment firm adds that there is no impact on the openpit mine, nor any expected loss of ore within the openpit reserve.

Besides, Appian argues, the area where the event occurred will be fully mined out during the second half of this year, at which point the instability will no longer exist.

Appian notes this in response to Sibanye alleging that the instability reduces a six-year mine life by two to three years.

“Sibanye’s actions have exaggerated the effect of the geotechnical instability and have materially damaged the market perception of Atlantic Nickel and Appian,” the firm states.

It says Sibanye purports to rely on alleged adverse impacts of this geotechnical instability to terminate the sale and purchase agreements, adding that Sibanye intentionally chose to breach its obligations for commercial reasons alone.

“Appian intends to rigorously enforce its legal rights and pursue Sibanye for all damages and losses incurred,” the firm concludes.

The energy transition is highlighting mining as an indispensable industry, said Responsible Mining Foundation (RMF) CEO Hélène Piaget in opening a webinar on 'Responsible Mining Index (RMI) Report 2022', which reports a slowdown in economic, environmental, social and governance (ESG).

“Yet there is a constant tension between society’s need for the products of mining and the harmful impacts that mining can and does cause. So society finds itself in a constant conflict of conscience when it comes to the mining industry,” said Piaget.

The RMI Report 2022 measures how a sample of mining companies are responding to the ESG expectations of society.

“But the same companies, who can show that they are making some progress on ESG policies and procedures, could at the same time, be a company that causes harm to people and environments in any number of ways. This is a contradiction that we have in trying to encourage continuous improvement,” said Piaget, who added that the reason why the RMF and many others were working to normalise responsible mining was exactly because of the potential harm that mining could cause.

The webinar, covered by Mining Weekly, was moderated by Synergy Global Consulting director Ed O’Keefe and participated in by International Council on Mining and Metals CEO Rohitesh Dhawan, IndustriALL Global Union mining director Glen Mpufane, Publish What You Pay executive director Elisa Peter, Polymetal company secretary Tania Tchedaeva and Triple R Alliance director Luc Zandvliet.

The report is described as an evidence-based assessment of 40 large-scale mining companies and 250 mine sites operating in 53 countries. These companies together represent about 30% of global production.

These listed, private and State-owned entities are responsible for about 1 000 operational and closed mine sites, with the report providing a snapshot of how the industry is progressing and the gaps that still require more effort, both at the corporate level and at mine sites, where harm prevention and risk limitation are regarded as being essential to responsible mining.

“Mine sites matter as this is where most salient harm can happen to people and environments, where the impacts of climate change are evident, so it is important to observe whether the company systems are, in fact, being implemented as intended, at the operations,” she said.

Schematic areas covered by RMF include economic development, business conduct, life-cycle management, community well-being, working conditions, and environmental responsibility, with cross-cutting issues including human rights, gender, harm prevention and climate change.

The results, as an overall observation, show signs of continuous improvement.

“Things are moving in the right direction, although with some slowing down now in 2022,” said Piaget.

The overall results for 2020 showed an average increase of 16% on a previous report, and the 2022 report now shows an increase of 11%.

Given the fact that most companies had shown strong profits, one could not ascribe the slowdown to the pandemic alone.

“We do have questions to ask about the slowing down,” she said.

Zimbabwe platinum group metals mining company Zimplats has been granted a licence to generate 185 MW, which incorporates the generation of its own solar power.

Zimplats is already totally green through the use of hydropower and the solar power will enhance the position of the company and enhance its security of supply, Zimplats CEO Alex Mhembere said in response to Mining Weekly during Tuesday’s Impala Platinum (Implats) media briefing, after debt-free Implats delivered half-year free cash flow generation of R15.1-billion for the six months ended December 31.

The $37-million first-phase solar plant will have a capacity of 35 MW, with commissioning scheduled during the 2024 financial year. Further phased expansion is under study.

“We should be able to go to tender in the next few weeks,” said Mhembere of the solar project, which had, he added, already received board approval from both Implats and Zimplats.

Mhembere expressed the hope that the project would be completed in 18 months and expedite the balancing of the solar and hydro power supplies.

Zimplats was given the go-ahead for a $521-million smelter expansion project and a R496-million base metals refinery project and acid plant commissioning, and the 185 MW will provide enough clean, green energy for the total operational requirements during the day and rely on utility-sourced hydropower at night.

Regarding renewables developments by Implats in South Africa, Implats CEO Nico Muller conceded that Implats was not at the same level of readiness as Zimplats.

“We are evaluating a number of projects. The one that is standing out is the Marula project for 10 MW but as far as the rest are concerned, they are probably in the process of being evaluated.

Implats executive sustainable development Dr Tsakani Mthombeni said that Implats had a number of studies with Marula entering a feasibility stage.

Mthombeni added that recent encouraging pronouncements in South Africa would allow more to be done in South Africa as well.

Muller said the strategy would be twofold, the first being collaboration with the rest of the industry and the government, to get government to commit to an increased proportional share of green energy in the total energy mix provided by the national energy provider.

“Given the dispensation for us to go up to 100 MW plants, we are evaluating options for all of our operations but they are probably not at a stage where we are able to commit in terms of specific projects, costs and timelines,” said Muller.

Mthombeni pointed out that the company had made a commitment to aim for carbon neutrality by 2050, while working the pathway back to 2030, with gas energy positioning the company to start transitioning to green hydrogen usage.

Muller described Implats as being aware that electrification and green hydrogen were two evolving technology streams and that the company was learning as it advanced, taking note of its impact and adapting the strategies of the company to suit future world requirements.

In response to an analyst’s question on the impact of the change in carbon tax, Implats CFO Meroonisha Kerber said the increase in the carbon tax impact for the company in the next few years would range from R20-million to R30-million.

“The issue is really around when they start removing the rebates, and also if Eskom is allowed to push through the carbon taxes to us. That should increase the carbon tax significantly that we’re going to pay,” said Kerber.

“As a group, we are looking at moving to renewables and you’ve seen what we’re doing in Zimbabwe. We’re busy looking at renewables for Marula, and we’re looking at different options for Rustenburg, and also our refineries.

“The way is for us to not only manage the cost but also on our journey towards carbon neutrality, we definitely are going to move towards more of our energy being derived from renewables,” said Kerber.

The next phase would be transitioning to green hydrogen.

Implats closed the period to December 31 with net...

Given the prominence of Russia as a platinum group metals (PGMs) producer, there are fears that it may potentially have an impact on global PGMs supply, Implats CEO Nico Muller said on Tuesday, when the JSE-listed company delivered robust earnings and free cash flow generation for its half-year ended December 31.

In the six months, Implats generated free cash flow of R15.1-billion, closing the period debt-free and with net cash of R18.5-billion.

Muller said it was important to note that Russia produces 2.7-million ounces of palladium a year, which accounts for 38% of global supply.

However, only 10% of global platinum and rhodium is produced by Russia, and even smaller percentages of iridium (8%) and ruthenium (4%).

“In addition to that, we have not seen sanctions imposed on the purchase of energy such as gas or raw materials, so no sanctions have been placed on PGMs,” Muller said during the presentation covered by Mining Weekly. (Also watch attached Creamer Media video.)

“To the extent that they may, it is important to note that China’s consumption exceeds the total volume of PGMs produced by Russia.

“We have seen an amplification of the PGM prices but from our perspective, it’s too early to conclude definitively that the world is facing a disruption in the PGMs supply,” he said.

From a basket price perspective, PGM prices peaked in the first half of the calendar year of 2021, followed by some softening in the second half of the year that overlaps with this reporting period.

“We have seen a recovery of the PGM prices at the beginning of 2022, even before the Ukraine situation unfolded, and we attribute that to a recovery in auto production, combined with guidance that had been issued by two of the peer companies in terms of potential supply constraints in the next year.

“In the long run, we believe that the fundamentals remain supportive of the PGMs pricing environment and that will be supported by the auto sector as well as the evolution of the hydrogen economy,” he added.

Earlier, Implats group executive refining and marketing Sifiso Sibiya reported that customers started building up inventory about three months ago, ahead of Russia’s invasion of Ukraine.

In response to HSBC mining equity analyst Leroy Mnguni on the impact of potential sanctions on Russian offtake agreements and logistics, Muller said that if Russia was forbidden to sell into existing offtake agreements it would have a rightful choice to sell to a new partner and that he was convinced that China would represent that potential avenue.

“I don’t believe that the logistics required to change distribution of metals is complicated and I think that can be done in a very short space of time. We mostly fly our products out. The only issue is if you’ve got restricted air space, but there are many ways to get high-value metals to the right consumers. I don’t think that is any issue at all,” said Muller.

CARBON TAX, RENEWABLES AND GREEN HYDROGEN

“We are well aware that electrification and hydrogen are two technology streams that are evolving, and we are learning as we are going along, just taking note that it may have an impact and we will adapt the strategies of the company to suit future world requirements,” said Muller.

In response to an analyst’s question on the impact of the change in carbon tax, Implats CFO Meroonisha Kerber said the increase in the carbon tax in the next few years would range from R20-million to R30-million.

“The issue is really around when they start removing the rebates, and also if Eskom is allowed to push through the carbon taxes to us. That should increase the carbon tax significantly that we’re going to pay,” said Kerber.

“As a group, we are looking at moving to renewables and you’ve seen what we’re doing in Zimbabwe. We’re busy looking at renewables for Marula, and we’re looking at different options for Rustenburg, and also our refineries.

“The way is for us to not only manage the cost but also on our journey towards carbon neutrality,...

TSX-listed Ivanhoe Mines’ South African subsidiary Ivanplats and its partners have announced “outstanding” positive results of an independent feasibility study for the company’s tier-one Platreef palladium, rhodium, nickel, platinum, copper and gold project in South Africa.

The feasibility study provided the blueprint for the ongoing development of the Platreef project and builds on the results of a preliminary economic assessment (PEA) for a phased-development scenario to expedite production, which was announced in November 2020, alongside the 2020 feasibility study.

“These . . . results define our commitment to advance Platreef to first production, alongside our local communities and . . . partners. We are counting down to less than 30 months from now.

"This achievement will only mark the first milestone, as we plan to expand this world-scale operation into one of the largest and lowest-cost integrated platinum group metals (PGMs) producers on the planet, all while generating outstanding returns on capital for a major, disruptive mine,” said Ivanhoe co-chairperson Robert Friedland at the thirty-first BMO Global Metals & Mining Conference in Florida, in the US, on February 28.

The 2022 feasibility study for Platreef was based on a steady-state production rate of 5.2-million tonnes a year, as well as an accelerated ramp-up to steady state through the earlier development of Shaft 2. The study was based on the detailed design and engineering scenario first presented in the 2020 PEA, confirming the viability of a new phased development pathway to fast-track Platreef into production by the third quarter of 2024.

The new feasibility study’s first phase of production included an initial 700 000 t/y underground mine and a concentrator with a capacity of 770 000 t/y, targeting high-grade mining areas close to the project's recently completed Shaft 1.

Platreef's 5.2-million-tonne-a-year steady-state production rate following Phase 2 development would rank it as the world's fifth-largest primary PGMs mine on a palladium-equivalent basis, the company said, with yearly forecast production of more than 590 000 oz of palladium, platinum, rhodium and gold, plus more than 40-million pounds of nickel and copper.

The 2022 feasibility study reflected the initial two phases of development for the Platreef mine. Previous studies demonstrated the resource base for future expansions up to 12-million tonnes a year, which would position Platreef among the largest PGM-producing mines globally.

The Platreef project – which includes an underground deposit of thick, high-grade platinum group element (PGE)/nickel/copper/gold mineralisation discovered by Ivanhoe's geologists – is in the northern limb of the Bushveld Complex about 11 km from Mokopane and 280 km northeast of Johannesburg.

PGE/nickel/copper/gold mineralisation in the northern limb is primarily hosted within the Platreef, which is a mineralised sequence that is traced more than 30 km along strike. The Platreef project is situated in the southern sector of the Platreef on two contiguous properties – Turfspruit and Macalacaskop – which comprise about 7 842 ha.

The northernmost property, Turfspruit, is contiguous with and along strike from platinum miner Anglo American Platinum's Mogalakwena group of properties and mining operations.

Ivanplats acquired a prospecting permit for Macalacaskop and Turfspruit in February 1998. In 1999, Ivanhoe began a series of drilling campaigns, totalling more than 726 000 m, to advance Platreef from a greenfield exploration project focused on shallow mineralised zones through to focusing on deeper underground targets. At the height of the drilling campaign, 30 diamond drill rigs were producing more than 10 000 m of core a week.

Since 2007, Ivanplats has focused its Platreef exploration and development activities on defining and advancing the thick, high-grade, down-dip extension of its original discovery at Platreef, now known as the Flatreef deposit. In 2012, th...

Gold mining company Harmony Gold is in the process of spending R7.7-billion on capital projects.

The biggest of these is the high-grade Zaaiplaats gold project at a capital cost of R4.5-billion. The Moab Khotsong mine will expand through Zaaiplaats.

Another big project at R3.2-billion is the extension of the large Kareerand tailings facility at Mine Waste Solutions, which will extend the life of Mine Waste Solutions by another 16 years, Harmony CEO Peter Steenkamp told Mining Weekly in a Teams interview. (Also watch attached Creamer Media video.)

Additional projects being developed include Target, Tshepong Sub 75, Doornkop Extension, where two more levels are being established to increase the volume of the mine over time, and another 2.5 years is also being added to the life-of-mine of Hidden Valley, in Papua New Guinea.

Regarding the business case presented by going green, Steenkamp said while the first 30 MW of renewable solar power would be through a power purchase agreement, “we’re seeing that in actual fact it’s much more lucrative to do it ourselves, and we do have long-life assets. For instance, Zaaiplaats is a very long-life asset for us, Tshepong is a long-life asset for us, and when we look at Doornkop, it’s going to be a long-life asset. That makes it much more cost-effective over time and the paybacks on those are fairly good, given the current electricity prices”.

Mining Weekly: Also green these days is surface mining because you’re helping the planet to get rid of dumps. Your expansion into surface mining is becoming pervasive. Just outline the future of your surface mining?

Steenkamp: Important is that we have extended the life of Mine Waste Solutions by another 16 years. That is a very, very lucrative business for us. At the moment, our profits out of the business are curtailed by the Franco-Nevada gold streaming contract we still have there, but that will come to an end in three years from now. But our surface sources are big. We have two plants in the Free State that are fully on recyclable retreatment and Kusasalethu could also come into that going forward, provided we find the proper place for the tailings storage facilities for that expansion. Savuka is small but Savuka is also now on tailings retreatment.

When you close mines such as Bambanani, are you going to look after the environment. You are talking about using some of the surface material there but what about the actual closure and making the place look good?

Steenkamp: We’re doing a lot of closure and rehabilitation work at the moment, and that is also very much what our long-term plans will be for forestation work that will need to be done and carbon credits. Yes, we are closing down mines. We’ve closed, I think, 48 shafts in the Free State already and we’ve managed to break down the headgear and clean up the areas.

Do you make sure you plant indigenous trees, and don't bring in exotics?

No, we plant indigenous trees.

Some people insist that it has to be endemic. What was growing in the Free State before mining took place, for example, that they want there again - so it might just be grass, or is it always trees that you plant?

No, originally there was a lot of grass in that area, but obviously there will be here and there some types of trees, but in the old Free State areas that still remain, there are grasses.

A lot of people are talking these days about the broad shared value that mines provide through the business of mining. The mines share quite a bit of value calculations are showing. How much did Harmony share in this half-year?

When you think about it, Harmony in the full year shared R31-billion worth of money that we’ve spent on things including salaries, electricity, consumables, communities, and the like, and most of that is spent in South Africa, because we don’t use a lot of suppliers outside of South Africa. That’s a massive amount of money that is spent. If you think about what is spent in, for instance, just the Welkom area, peo...

South Africa’s largest gold producer by volume, Harmony Gold, has begun an “aggressive” renewable energy rollout plan as it advances its plans to decarbonise to net zero by 2045, Harmony CEO Peter Steenkamp said on Monday.

The rollout plan involves having 167 MW of solar power in place by financial year 2025 (FY255).

“As the global focus on decarbonisation increases, we understand that we too have an important role to play to reduce our Scope 2 emissions and reduce our carbon footprint,” said Harmony Steenkamp during the Johannesburg- and New York-listed company's presentation of financial results.

Harmony has made a strategic decision to accelerate the rollout of is renewable energy over three phases.

Commercial close is imminent for the first phase 30 MW power purchase agreement in the Free State. This will generate 75 GWh of clean power a year and is expected to be completed in FY24.

The second phase of the 137 MW, which will be completed by the end of FY25, will be funded internally by Harmony itself.

This project is expected to cost about R1.5-billion and will deliver R500-million worth of cost savings along with 340 GWh of energy a year.

The third 56 MW phase is being planed for completion in FY26.

These projects contribute towards the aspiration of Harmony Gold to be carbon net zero by 2045.

“They derisk our business while delivering significant economic value to Harmony and improving the well-being of our host communities or many years to come,” Steenkamp said during the presentation covered by Mining Weekly..

“Many of our renewable energy plants will be aligned to long-life assets

Harmony’s re-engineered South African operations have been grouped across a seven-to-20-year life-of-mine spectrum and much of the company’s major capital has been allocated to its long-life assets to ensure that they deliver high grades and better volumes.

Mines such as Moab Khotsong, Mponeng, Doornkop and its surface operations will receive most of the company’s project capital.

“We are investing in these assets to prolong their economic life,” said Steenkamp.

The Moab Khotsong operations will expand through Zaaiplaats and the Great Noligwa shaft pillar will also be mined.

Studies are being conducted into the potential deepening of Mponeng and also the mining of the Tau Tona and Savuka shaft pillars.