JOHANNESBURG (miningweekly.com) – Diversified mining company African Rainbow Minerals (ARM) made progress toward its renewable-energy ambitions during the half-year, with construction of the 100 MW solar plant now complete and the project achieving over 1.2-million lost-time injury-free working hours.

The long-term power purchase agreement (PPA) is expected to deliver energy supply security, and substantial environmental and financial benefits, including an estimated 30% reduction in ARM Platinum’s CO₂ emissions and total savings of 4.8-million tonnes over the 20-year term.

Despite temporary export constraints at the high voltage distribution substation, the ARM Platinum operations started receiving renewable power during December, with full 100 MW export capacity expected once the grid upgrades are completed in 2026.

The ARM Ferrous division continues advancing its renewable-energy strategy. Following completion of the renewable-energy definitive feasibility study in December 2024, ARM Ferrous tested the market for a potential PPA with an independent power producer structured over a five-year term, aimed at managing uncertainty in future Eskom tariff structures and potential legislative changes.

Technical and commercial adjudication processes are currently underway, the outcomes of which will inform the medium-term renewable-energy plan.

Mining Weekly can report that a risk-based approach will guide the development of a longer-term renewable-energy solution.

WATER MANAGEMENT

The water supply to Khumani mine remained consistent in the half-year, with no significant operational disruptions caused by water shortages.

This was supported by consistent inflows from the Vaal Gamagara water supply scheme and supplementary water secured through agreements with neighbouring mines. While short-term reliability has improved, structural risks remain.

The Vaal Gamagara pipeline project Phase 2 refurbishment, which is the long-term solution to ensure sustainable water security for mining and regional users, has progressed to the engineering and design stage.

Consulting engineers appointed by the Vaal Gamagara Water User Association have commenced specialist studies and detailed engineering design for the Phase 2 project, which is scheduled for completion by June 2027.

Preliminary work on the funding model and market sounding is also nearing completion. Over the next 18 months, the project team will continue developing the Phase 2 programme in line with the governance and funding framework being established between the Department of Water and Sanitation and the commercial users.

ENVIRONMENTAL MANAGEMENT

Regarding decarbonisation and journey to net-zero, ARM’s short-term target is to reduce scope 1 and 2 emissions by 15% this year and to target a medium-term emission reduction of 30% by 2030.

Decarbonisation pathways identified include improving energy efficiencies, implementing renewable energy and the use of new energy vehicles.

Energy-saving initiatives and reduced activities at Beeshoek mine, Cato Ridge works and Bokoni mine have achieved greenhouse gas emissions performance and reduced scope 1 and 2 emissions by 31%.