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Smart Tech Can Combat Energy Inflation Across SA Mines

28th May 2025

     

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By: Murray Crow, Managing Director of Kwikot

A Critical Juncture for Mining Energy Management 

In my 25 years in the energy and manufacturing sector, and now as Managing Director of one of South Africa’s leading producers of water heating systems, I’ve seen first-hand how energy can either drive productivity or derail entire operations. Sitting at the helm of a business that supplies mission-critical infrastructure to mining sites across the country, it’s clear that the conversation around energy resilience can no longer wait. 

If you run a mine in South Africa today, you’re operating against the odds. Between unpredictable load shedding schedules and electricity tariffs that climb every year, the goalposts for energy management keep shifting. When you consider that energy is one of the highest cost lines in most mining operations, especially in remote staff accommodations and processing facilities — the pressure to find smarter solutions is not just strategic. It’s existential. 

THE CASE FOR CHANGE: Scaling Sustainably Towards 2050 

By 2050, Africa is expected to command a significantly larger share of the global mining value chain, with mineral demand forecast to surge as the world transitions to clean energy technologies. South African mines sit on some of the world’s most strategic reserves, but if we don’t stabilise operational inputs like power, our global competitiveness will erode. 

This winter, load shedding remains a very real threat. The Minerals Council SA has warned that Eskom’s energy availability factor is stalled at just 57.5% - meaning outages are far from over. For mines that rely on stable, round-the-clock power to maintain safety protocols, ventilation systems and equipment uptime, this isn’t just inconvenient. It’s dangerous. 

And then there’s the cost. Since 2008, electricity prices for energy-intensive users like mines have increased eightfold. In just the past four years, tariffs have climbed another 46%, with the latest hike of 12.74% kicking in this April. These increases consistently outpace inflation and eat directly into margins. 

WHAT INDUSTRY NEEDS NOW: Practical, Low-Friction Resilience 

Against this backdrop, energy resilience must move from long-term ambition to daily operating reality. That requires a shift from reactive strategies to proactive interventions. And that starts by looking at the overlooked. 

Water heating is a prime example. In many mining compounds, geysers are used for dormitory showers, staff kitchens, sanitation stations, and cleaning facilities. They are essential, but they are also a hidden energy burden. 

THE ROLE OF INNOVATION: Smarter Water Heating in Action 

Smart water heating systems are changing that. By integrating geysers with solar PV systems and installing load-shifting controllers, mines are now scheduling water heating during midday solar peaks or off-grid hours. This not only ensures uninterrupted hot water during load shedding but also cuts consumption during the most expensive tariff windows. 

In a staff village, this might mean fewer cold showers and higher morale. In a processing plant, it means uninterrupted sanitation and compliance. But in every case, it means control over cost, uptime and risk. 

There’s also a significant data upside. These systems offer real-time usage insights, predictive maintenance alerts, and fault detection, all of which reduce breakdowns, insurance risk and operational surprises. 

We’ve engineered systems that bypass the need for inverters and batteries, drawing DC power straight from solar panels into the geyser. It’s simple, scalable and designed for South African realities. More importantly, it aligns with the global push towards the UN’s Sustainable Development Goal 7: Affordable and Clean Energy. 

THE PRIVATE SECTOR’S MANDATE: Lead with What’s Within Reach 

Are smart geysers the silver bullet for mining’s energy woes? No. But they are a smart starting point. They represent the kind of low-hanging fruit that mines can adopt today, without capital-heavy overhauls or regulatory hurdles. 

The private sector has both the responsibility and the capability to lead energy reform in this country, and the mining industry, with its appetite for engineering and history of infrastructure investment, is perfectly positioned to lead. 

CONCLUSION: Toward Short-Term Wins with Long-Term Value 

Energy resilience requires short-term solutions that deliver long-term impact, and it starts with data, smart technology and the will to act. 

Because every kilowatt-hour counts, and in a sector this vital to our economic future, every smart decision counts even more.

Edited by Creamer Media Reporter

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