By: Creamer media

The agreement is expected to deliver substantial cost savings, long-term energy supply stability and support the company’s decarbonisation strategy.

The additional allocation brings Pan African’s total renewable energy supply to about 389 GWh/y, providing a significant portion of the company’s electricity requirements. Pan African’s Barberton mines, Evander mines and Mogale tailings retreatment operations in Mpumalanga and Gauteng will be directly supplied under the agreement.

“In a sector where energy risk directly impacts cost, competitiveness and operational continuity, Pan African required a solution that supports both our current needs and our longer-term growth and decarbonisation objectives.

“NOA worked closely with our team to develop a flexible solution and conclude this agreement in just one month. Their ability to move quickly without compromising quality makes them the right partner to deliver renewable energy at scale,” Pan African CEO Cobus Loots said on February 10.

The transaction includes verified International Renewable Energy Certificates, or I-RECs, enabling Pan African to accelerate its decarbonisation strategy and report tangible emissions reductions. The solution is also designed to enhance cost control and protect margins in a sector that is highly sensitive to electricity price volatility and supply risk.

“For large energy users competing in global markets, access to competitively priced, reliable energy is fundamental to long-term sustainability. In gold mining, electricity is a major operating cost and a key driver of margin pressure.

“Competitive electricity pricing is therefore essential to managing our all-in sustaining costs and maintaining global competitiveness as a South African producer. This renewable energy supply agreement strengthens our cost stability, supports decarbonisation and reduces our exposure to ongoing tariff volatility,” Loots added.

NOA has secured several major energy supply agreements within the mining sector in the last 12 months, reflecting growing demand for renewable-energy solutions as the industry transitions toward lower-carbon operations.

“With an estimated 16 GW of renewable-energy initiatives under way in South Africa’s mining sector, the focus is increasingly on execution rather than intent. This agreement reflects a pragmatic approach, delivering a scalable, bankable solution while supporting Pan African’s decarbonisation obligations,” NOA CEO Karel Cornelissen said.

He added that the solution design was informed by granular consumption data and planned operational expansions, ensuring a purpose-built renewable-energy solution that evolved alongside the business and aligned with operational demand.