Northam Platinum has finalised a power purchase agreement (PPA) with an independent power producer (IPP) for a 140MW wind farm, marking the company’s second significant renewable energy deal.
The wind farm, located near Sutherland in the Northern Cape, is expected to generate 460GWh of energy per year that will be transmitted over the Eskom grid to Northam’s three mining and processing operations.
Construction is set to commence immediately, with power expected to be available by the 2027 financial year.
The deal follows the company’s announcement in October 2024 of a PPA for an 80MW solar power plant to service its Zondereinde mine, located in the western limb of the Bushveld Complex near Thabazimbi, Limpopo.
The company said the combined solar and wind power plants are expected to reduce its carbon footprint by up to 45%, while providing substantial energy cost savings and improving security of power supply.
The wind farm will be built by an IPP consortium comprising G7 Renewable Energies, a Cape Town-based privately owned energy company founded in 2008, and Cennergi, an SA renewable energy company and subsidiary of Exxaro Resources.
Project financing is being provided by Nedbank, Standard Bank and Absa.
CEO Paul Dunne said the company remains committed to reducing its environmental impact while ensuring business resilience.
“This latest agreement represents a further milestone in our ambition to sustainably reduce our environmental footprint while realising significant cost savings,” he said.
Northam has publicly stated its aim to cut carbon intensity by 60% from a 2019 baseline by 2030. The company said future projects may include solar, wind and battery storage initiatives.
Northam’s shift towards renewable energy comes as SA’s mining companies face increasing pressure to reduce their environmental footprint.
As the primary electricity supplier to the mining industry, Eskom’s proposed tariff hikes have led to the industry’s search for alternative energy sources, as mining companies have traditionally relied heavily on Eskom for their power needs.
Northam’s earlier 80MW solar power plant, which will supply electricity to the Zondereinde mine, is being developed in partnership with a consortium that includes Stanlib Infrastructure Fund and Royal Bafokeng.
The company previously stated that once operational the plant is expected to deliver 220GWh of energy annually directly to Zondereinde’s mining and smelting operations, reducing the operation’s carbon footprint by 22%.
Construction is under way, with power generation expected to commence in December 2025.
The company’s shares were trading lower on the JSE after the announcement.
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