Platinum group metals (PGM) and chrome miner Tharisa Minerals have signed a wind and solar electricity wheeling agreement with renewable energy firm, Etana Energy, which will provide about 44% of the South African miner’s power requirements.
The long-term power purchase agreement signed with Etana covers the procurement of renewable energy for the company’s Tharisa Mine, on the western limb of the Bushveld Complex.
“The 15-year agreement with Etana Energy Proprietary Limited will see Etana provide up to 44% of the Tharisa Mine’s electricity energy demand via wheeled energy from wind and solar farms in the Western Cape and Northern Cape using the existing electricity transmission grid,” said Tharisa in a statement yesterday.
Tharisa planned for the wheeled energy from Etana to come on stream in 2026, a development that would enable the mine “to better manage its power costs and benefit from the renewable energy certificates” arising from the transaction.
The wheeled energy from Etana would complement the Tharisa mine’s 40MW solar power plant that was being developed by TotalEnergies Renewables South Africa and Chariot Transitional Power South Africa.
The 40MW power plant was designed to provide 30% of Tharisa Minerals’ energy needs.
“This second major renewable energy project is the natural progression in our quest to reduce our reliance on fossil fuel-driven energy, and a major component of creating the sustainable resources company of the future,” said Lucien Matthews, the executive for special projects at Tharisa.
Matthews said Tharisa was set to meet and exceed its carbon reduction targets by 2030, given the partnerships it was signing up to for renewable energy supply.
“These aspects will ensure we maintain control on our operating costs base which is a vital cog in our drive for sustainability of our multigenerational resource,” added Matthews.
Etana was granted an energy trading licence in May 2022 for 25 years and is one of five companies that hold energy trading licences in South Africa. It has also signed up similar renewable energy supply agreements with other mining ventures and property companies.
“We are delighted to have been entrusted as Tharisa’s partner to help realise their ambitious sustainability objectives. This transaction demonstrates how Etana can provide its partners with solutions that give them the comfort to enter into long term agreements,” said Evan Rice, the CEO of Etana Energy.
“This really is the added value that an aggregator can bring to energy consumers looking to rapidly shift to low carbon energy.”
Tharisa’s diversified portfolio has given it respite in spite of persistently lower PGM prices, especially with chrome prices performing better.
“Chrome prices have continued to trend upwards on strong fundamental demand for product coupled with port inventories at the lower end, supporting prices,” said the company recently.
BUSINESS REPORT