Name of the Project
Harmony Gold renewable-energy programme.

Location
The first phase of the project will be located in Welkom, in the Free State, South Africa.

Project Owner/s
Harmony Gold Mining Company.

Project Description
As part of its decarbonisation strategy and journey towards carbon net zero, Harmony is accelerating the expansion and roll-out of numerous renewable-energy projects across South Africa.

Phase 1 comprises a 30 MW solar energy plant. The company built three 10 MW plants at its Tshepong, Eland and Nyala operations. The plants are expected to deliver 64 GWh/y to Harmony’s mining operations, when fully operational, and mitigate 62 000 t/y of CO2 equivalent. The project will provide a cost saving of R340-million over 15 years.

In Phase 2, an additional 137 MW of renewable photovoltaic energy, to generate 320 GWh/y of clean power, will be installed at Moab Khotsong, one of Harmony’s longer-life mines. A gatekeeping review in January 2023 approved construction of a 100 MW solar PV plant. The balance of 37 MW will be built under a power purchase agreement.

Phase 1 and 2 will deliver R425-million a year in electricity cost savings.

In Phase 3, Harmony plans to add an additional 56 MW of renewable energy. The project is expected to generate 130 GWh/y of clean power and reduce Harmony’s carbon emissions by 1.17-million tonnes.

Total cumulative savings over 15 years, once Phase 3 is operational, is estimated at a net present value of R3.6-billion.

In its results for the financial ended June 2024, Harmony announced an expanded renewable-energy programme. The miner’s previous plan included 363 MW in installed capacity from renewable-energy sources by the 2026 financial year. In its revised plan, it has increased this to more than 500 MW by 2028.

Phase 4 of the revised programme will add 100 MW to Harmony’s installed capacity and generate an estimated 230 GW/y.

The renewable-energy programme also has a wheeled wind component that is expected to have a capacity of 260 MW and generate 800 GWh/y.

Potential Job Creation
Not stated.

Capital Expenditure
The solar projects will be financed through a green loan, with the rest of the expenditure being financed from existing resources and, where appropriate, borrowings. 

Phase 1 was undertaken through a power purchase agreement and, thus, Harmony capital was not used.

The roll-out of Phase 2 is expected to cost about R1.7-billion for the first 100 MW, with the remaining 37 MW allocated to an independent power producer (IPP). 

Phase 3 will not require any capital, as the plants will be built and operated by IPPs.

Planned Start/End Date
Phase 1 was commissioned in May 2023.

Phase 2 is expected to reach full production in the 2026/27 financial year.

Phase 3 is planned for completion in the 2027 financial year.

Phase 4, as well as the proposed wheeled wind component of the programme, is expected to be commissioned in the 2028 financial year.

Latest Developments
Harmony expects to break ground on Phase 2a of its renewable-energy programme in the first quarter of the 2025 financial year. The construction of this 100 MW solar photovoltaic plant will be funded partially through its existing green loan facility.

Key Contracts, Suppliers and Consultants
Harmony, Energy Group and BBEnergy (Phase 1 construction).

Contact Details for Project Information
Harmony Gold Mining Company group communications manager Sihle Maake, tel +27 11 411 2312 or email sihle.maake@harmony.co.za
Harmony Gold Mining Company head of investor relations Jared Coetzer, tel +27 11 411 6073 or email jared.coetzer@harmony.co.za.