Phase 1 and small scale solar PV projects

Mining with purpose is our approach to creating shared value for our stakeholders – our communities, our employees, our contractors and sub-contractors, our suppliers and shareholders, and the government in the countries where we operate. Our decarbonisation journey started more than a decade ago, with Harmony implementing early emission reduction initiatives during the 2010’s. Our decarbonisation journey was developed in the context of our commitments to the Paris Agreement and the developing global landscape, and was formalised in 2021 with the setting of a science-based target. In January 2022 we submitted a science-based target (SBT) to the Science Based Targets Initiative (SBTi) and in 2023, received validation for our target of aligning with 1.5o C by FY36. We are also a member of the Business Ambition for 1.50 C campaign.

Harmony’s decarbonisation strategy is dedicated to reducing our direct scope 1 and 2 emissions footprint, and is guiding our operations to net zero GHG emissions by 2045 with a transition pathway. The pathway includes energy efficiency, portfolio re-engineering, improving our electricity mix, adaptation and decarbonising our transportation sector. This ensures we effectively navigate the challenges and opportunities presented by the global shift to a low-carbon economy. On the back of prioritising operational efficiency and transitioning to renewable energy sources to achieve our decarbonisation targets, we invested in renewable energy projects, including both small scale solar installations, as well as having commissioned solar PV facilities in the Free State as part of Phase 1 of our decarbonisation programme.

Small scale solar facilities were successfully installed at our Randfontein corporate office as well as at our Nufcor plant. We constructed these facilities to reduce our reliance on the national power producer, and to contribute to our larger decarbonisation programme at Harmony. Both plants together generate 999MWh of energy on an annual basis. In total, the implementation cost of these facilities amounted to R9 million. In future, we are looking at installing more small scale solar facilities at our other operations as well.

Phase 1 of our decarbonisation programme entailed the commissioning of three 10MW solar PV facilities, specifically at our Tshepong, Nyala and Eland operations in May 2023. These facilities now directly feeds renewable energy generated power to our operations, thereby reducing our CO2 emissions by 49 000 tonnes per annum, and further allowing us to become more power independent. The capex spend on this project was R5 million, funded through a PPA. Despite the successful commissioning of these facilities, some challenges were experienced during the construction phase which included excessive summer rains flooding substation excavations, the uncovering of underground structures at Eland which needed to be removed, as well as disruption by local communities seeking employment.

In FY24, the phase 1 renewable energy projects and small-scale solar PV plants successfully generated 65.3GWh of renewable energy at Harmony, allowing us to shift a portion of our energy requirements to more cleaner energy sources.