JSE-listed Northam Platinum has finalised a power purchase agreement (PPA) with an independent power producer (IPP) for an 80 MW solar power plant to service its Zondereinde operation, near the town of Thabazimbi, in Limpopo.

The plant will deliver 220 GWh/y of energy directly into Zondereinde’s mining and smelting operations, independent of State-owned entity Eskom’s grid, reducing the operation’s carbon footprint by 22%.

Further benefits include significant cost savings and reduced power supply risk, the platinum group metals miner points out.

Construction has started and the plant will start supplying electricity to Zondereinde from December 2025.

The IPP comprises a consortium including the Stanlib Infrastructure Fund II, Royal Bafokeng Holdings and Energy Group.

The Stanlib fund holds a 51% equity stake in the solar farm. Stanlib Infrastructure Investments co-head Andy Louw says that investments like this, in large-scale private-sector renewable-energy projects outside the Renewable Independent Power Producer Procurement Programme, are critical to help alleviate the country’s social and economic challenges.

Project finance is being provided by Nedbank, acting through its Nedbank Corporate and Investment Banking division, and Standard Bank of South Africa, acting through its Corporate and Investment Banking division.

The project is part of a broader strategy to reduce Northam’s environmental impact while securing the supply of bulk services.

This includes a reduction in carbon intensity by 60% from a 2019 baseline by 2030, while improving power availability and decreasing overall electricity costs.

Northam is at an advanced stage of progressing additional renewable-energy projects. including solar, wind and battery storage initiatives.

“Northam is committed to sustainably reducing the environmental impact of our operations, and this, our first major renewable-energy project, represents asignificant milestone.

“The environmental, operating cost and energy security benefits implicit in this initiative add additional resilience to our world-class Zondereinde mine,” says CEO Paul Dunne.