South Africa's Harmony Gold Mining Company Limited has launched construction of 3×10 MW solar power capacity in the country as part of its commitment to meeting environmental, social and governance (ESG) targets.
This 30 MW capacity will be realized under phase I in Free State through an independent power producer (IPP) set up in collaboration with local clean energy advisor Energy Group and EPC company BBEnergy.
Once this capacity is online, Harmony expects it to generate over 68 GWh of clean power for its Free State operations over a 20-year period.
Phase I will be followed by a phase II comprising an additional 137 MW renewable energy which will supply power to the company's various longer-life mines, it said. The latter is expected to help it save more than ZAR 500 million ($32 million) annually on electricity cost savings when it achieves full production in FY25. It is currently at feasibility stage.
There will also be a phase III whose capacity Harmony did not specify but said it is at planning stage and progressing as anticipated.
Businesses across industries are of late focusing more than usual on the ESG as stakeholders and investors want to see the company standing up as a socially and environmentally conscientious organization.
"The ESG-linked financial transactions that we have concluded, alongside the construction of the solar energy plants, are a watershed moment for Harmony and our host communities. Not only will these transactions help us to deliver on our environmental and social obligations and undertakings, but they will also de-risk the business and deliver many socio-economic benefits," explained company's CEO Peter Steenkamp. "'Mining with purpose' is ensuring that our investors and other stakeholders continue to derive value and positive returns in a global climate of energy uncertainty."
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