Northam Platinum has secured an additional R2bn in funding for its renewable energy programme as it works to ease reliance on the national grid.
Its existing revolving credit facility, maturing in August 2027, has been increased to R13.3bn from R11.3bn, the group, valued at R154.8bn on the JSE, said on Friday.
The funding will allow it to accelerate the construction of photovoltaic solar plants and battery storage at its mine sites in Mpumalanga and Limpopo.
The miner hopes that renewables will provide more than 70% of its total energy requirement before the end of the decade, improving its footprint and making its cost of power more competitive.
“Northam is a large and growing energy user, and to improve security and diversity of energy supply, while reducing long-term energy costs and our impact on the environment, we have been actively and aggressively pursuing an alternative and renewable energy programme,” it said in a statement.
Rising power costs have emerged as the primary driver of mining input cost inflation in recent years, with Eskom’s electricity tariff increases consistently exceeding the South African Reserve Bank’s inflation target over the past two decades.
The Minerals Council South Africa warns that this substantial burden on the cost bases of energy-intensive mining is expected to ramp up in the near term.
Energy regulator Nersa has approved electricity tariff hikes that imply a cumulative increase of about 25% over the next three financial years. Companies and households, unable to afford the rising cost of power, have already begun to cut back on consumption.
Northam CFO Alet Coetzee said the revolving credit facility increase will provide the necessary flexibility and additional capacity to “accelerate our efforts to enhance the security of our energy supply through the use of renewable sources and to significantly decrease our contribution towards greenhouse gas emissions, without affecting our other capital programmes or our ability to return value to shareholders whilst doing so”.
Northam’s shares closed up 4.57% at R387 on Friday, taking its year-to-date gains to 11.64%. Over the past year, the company’s shares have risen 265%.
Update: February 22 2026
This story has been updated with new information.
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