South Africa’s vitality transition is a shared alternative to strengthen vitality safety and sustainability whereas supporting development and reducing emissions. On the Joburg Indaba, Kearney Accomplice Frances Phillips mentioned the transition will depend on dependable, inexpensive energy. Mining can contribute as a significant vitality consumer and investor.
Coal provides about four-fifths of electrical energy at present. The IRP 2025 headline 2039 combine contains 24% wind, 18% photo voltaic PV and 27% coal, alongside fuel, storage and nuclear. Phillips framed the problem: “We’re positively shifting away from the reliance on a singular know-how to a combination. Of that, everyone knows that about 40 % can be renewables, however what in regards to the steadiness?”
As wind and photo voltaic develop, the system might want to steadiness their variable output with demand. Batteries and pumped hydro can retailer electrical energy; fuel can present versatile technology. Phillips mentioned: “It’s actually going to be a combination, however on the centre of that blend is the enablement via the grid: with the ability to get the facility from the place it’s produced to the place it’s wanted, and the flexibility to stabilise the grid.” Grid funding and clear guidelines for personal participation can be necessary as technology and storage broaden.
Mining’s demand helps make this funding viable. Firms are pursuing on-site technology, renewable energy buy agreements, wheeling and partnerships. Examples embrace a 63 MW photo voltaic mission deliberate for Kumba’s Sishen mine, an settlement anticipated to produce as much as 90% of an Implats refinery’s energy demand, and the 520 MW Kumba-Envusa renewable cluster. These initiatives assist operations and add technology to the broader market.
Mining’s contribution may draw on the sector’s expertise and capabilities. Phillips mentioned transferable upkeep and development expertise can assist handle functionality gaps. Aggregated procurement demand for photo voltaic and wind initiatives can advance commercialisation and native industrialisation, whereas mining’s rehabilitation expertise can assist the decommissioning and repurposing of energy stations and different vitality property.
These industrial capabilities additionally open a path to higher-value native manufacturing. Phillips sees potential to pair renewable vitality with South African iron ore to supply inexperienced iron, together with direct diminished iron for export. Realising it can require inexpensive energy, processing services, dependable rail and port infrastructure, and credible patrons.
Dependable energy is important to mining’s development, and the sector can assist strengthen the vitality system via funding, infrastructure and native provide chains. Phillips mentioned progress ought to be judged by clear outcomes: reliable energy, initiatives delivered, employees supported and worth created regionally. Collectively, these outcomes could make vitality safety and sustainability a shared alternative for South Africa’s mining sector and its wider economic system.
