As we look to embrace a transformative era in the resources sector across the globe, Africa has become a key player, and more and more companies are looking for greener more sustainable ways to operate.
Today there is a universal ambition to do better, be better, and to become more aware of the climate implications of our actions for generations to come, particularly in the mining sector.
A fundamental aspect of sustainability in any country, which is poised to create significant future impacts, is the mining industry’s dedication to achieving net-zero emissions and implementing energy transition strategies.
Climate change has a major impact on a large variety of countries within Africa, threatening to push millions of Africans into poverty by 2030. Many countries on the continent have made significant developmental achievements in the last few decades with annual growth steadily increasing.
In fact, The African Development Bank Group reported that real gross domestic product growth for the continent is expected to average 3.8% and 4.2% in 2024 and 2025, respectively. This is higher than projected global averages of 2.9% and 3.2%. Yet, extreme weather, water contamination, and climate risks threaten to diminish these gains, and increasingly cast a magnified focus on mining operations across the continent, due to the environmental impacts directly caused by the industry.
The only real way to combat climate implications such as these is to implement policies and climate-smart operational strategies both through government, mega-corporations, and the mining industry, that are crucial to the African mining sector. Green mining and harnessing the extended reach of mining with renewable energy will not only unlock major economic opportunities for African countries, but also deliver towards greater country objectives for clean energy.
African leaders embraced this notion of ‘adaptation’ as a key catalyst at last year’s COP28 event held in Dubai.
“The extraction of critical minerals for the clean energy revolution – from wind farms to solar panels and battery manufacturing – must be done in a sustainable, fair, and just way, the UN chief said, adding that the demand for minerals, such as copper, lithium, and cobalt, is set to increase almost fourfold by 2030.
He further stated that “we cannot repeat the mistakes of the past”, with the systematic exploitation of developing countries reduced to the production of basic raw materials.
Undoubtedly, people look to mining companies to bare these responsibilities more than other industries, due to the environmental impacts some operations cause, and more investors are calling for sustainable practices to remain at the forefront of operational initiatives and mining plans.
Major green energy
Several larger mining companies are working to implement more robust ESG and cost-saving initiatives in their operations.
For instance, Tronox, a titanium dioxide producer, has announced a long-term Power Purchase Agreement (PPA) with the integrated energy utility NOA Group to develop wind and solar power plants with a combined capacity of 200MW. Set for completion by 2027, these renewable energy sources will power Tronox’s mines and smelters within South Africa. Additionally, two 100MW solar farms are being developed by PV company SOLA Group to further support Tronox’s South African mining operations.
Similarly, Richard Bay Minerals has recently signed a 150KW PPA to harness green energy from the Khangela Emoyeni Wind Farm for its mining operations in Richard’s Bay. This landmark agreement, signed in June 2024, was championed by renewable energy developer African Clean Energy Developments, equity fund IDEAS Fund, finance corporation Rand Merchant Bank, and investment holding company Reatile Group.
The collaboration aims to significantly reduce the carbon footprint of Richard Bay Minerals and sets a precedent for other mining operations in the region to follow suit.
Looking over to mega-miner Barrick Gold, despite recent troublesome news for Barrick in Mali, the company is still working diligently to greenify its operations. Over in the northeast of the Democratic Republic of Congo, the largest gold mine in Africa, the Kibali Gold Mine, is now also one of the greenest mines on the African continent, confirmed by its president and CEO, Mark Bristow, in a press release dated January 2024.
Much of the electricity that drives Kibali is already supplied by its three hydropower stations. Once the mine’s new 16MW solar plant and additional battery energy storage infrastructure, designed to back up the hydropower supply during the region’s dry season, are commissioned, it is expected the mine’s overall renewable electricity supply will increase from 81% to 85%, and for six months of the year its electricity demand will be met entirely by renewable energy.
“Bearing in mind that Kibali is also a leader in automation, the mine is a real role model for mining in Africa. As a long-standing partner of the DRC, we built Kibali in the remote northeast of the country, opening up a new mining frontier and, in the process, also promoted the development of a flourishing local economy,” Bristow said.
“This partnership has been particularly beneficial for the DRC. Our total in-country investment to date in the form of royalties, taxes, dividends, and payments to local suppliers amounts to US$4.7B. The implementation of community development projects supported by Kibali’s community development fund, which contributes 0.3% of revenue to such projects, continues with 44 new projects launched in 2023.”
Junior green options
For junior miners, the path to green and sustainable mining can seem financially daunting compared to their more financially established counterparts. However, African governments and institutions are increasingly encouraging financing options to support green mining initiatives across the continent.
One popular approach, as previously mentioned with Tronox, is PPAs, where miners partner with renewable energy companies to secure long-term, stable energy contracts. Under a PPA, the renewable energy company finances, builds, and operates the renewable infrastructure, such as solar or wind farms, while the mines agree to purchase the generated power. This model is particularly cost-effective, requiring less upfront capital and ensuring a stable power supply.
Moreover, development finance institutions and international organizations are progressively showing interest in funding green energy projects within the African mining sector. The African Development Bank (AfDB) is a notable example, increasingly providing financial packages to support renewable energy initiatives. These packages often include favourable loan terms, grants, or equity investments, making it easier for junior miners to transition to sustainable or green alternatives. For instance, AfDB’s support has enabled junior miner Shanta Gold to integrate solar power into its New Luika Gold Mine in Tanzania, enhancing both sustainability and operational efficiency.
These initiatives demonstrate that, despite financial challenges, junior miners in Africa have viable pathways to embrace green and sustainable mining practices, and that major institutions and African governments are working collaboratively to encourage all mining companies, big or small, to make more green decisions.
