Climate change, energy and emissions

  • JSE: R158.65 -1.06%
  • NYSE:$8.34 -1.65%
  • GOLD:$2 638/oz -0.70%
  • GOLD:R1 588 726/kg -0.65%
  • USD:ZARR18.73 +0.02%
  • At 00:42am, 04 Jan 2025

Our decarbonisation strategy is moving us towards a sustainable future by reducing our fossil fuel-based energy consumption and related costs. The company is optimally positioned to support the transition to a clean energy future.

Our current assets are predominantly deep underground mining operations, which are more energy-intensive than surface mines, and in FY23 accounted for 89% of the group’s total electricity consumption. Energy accounts for around 19% of our South African operating costs.

Electricity supply security, Greenhouse gas (GHG) emissions, climate change and carbon tax liabilities are material risks as we mainly consume energy from South Africa’s coal-based grid. Eskom’s erratic supply and above-inflation tariff increases in South Africa significantly impact our sustainability.

The Hidden Valley Mine in Papua New Guinea also experienced energy supply challenges in FY23 when drought constrained the predominately hydropower Ramu grid.

In Australia, the May 2020 Eva Copper feasibility study and December 2021 update, prepared before we acquired the asset, proposed gas-fired power as the life-of-mine solution for the project. In keeping with our climate change commitments, we are revisiting our power source and energy mix as part of our detailed review and optimisation study. We are assessing alternative power supply options and mixes, including the integration of renewables into project design and future opportunities related to the Queensland government’s CopperString project. We are working with various stakeholders, including the government-owned Powerlink Queensland, which will construct and manage CopperString, to understand future power supply options.

We expect our optimised study to present a life-of-mine strategy that provides a reliable power supply to Eva Copper and advances our decarbonisation goals.

Our approach

Harmony’s policies and strategies acknowledge the impacts of climate change on gold mining, society, the environment and the global economy ─ and we appreciate the urgency to be deliberate with our actions. To achieve the United Nations Framework Convention on Climate Change objectives, we are pursuing the Paris Agreement’s goal to limit global warming to 1.5°C by the end of the century with science-based targets and KPIs linked to our sustainability targets.

The group’s climate change and energy policy statement responds to our current context and future ambitions. It is based on the following commitments:

  • Integrate risks and opportunities associated with climate change and energy management into Harmony’s business strategy.
  • Continue reducing our operations’ carbon intensity by implementing emission-reduction activities over time.
  • Keep tracking, managing, optimising and diversifying our energy use and minimising our reliance on fossil fuel-based energy sources.
  • Advocate for measures that promote technological innovation, address emission reduction challenges and advance the low-carbon transition of our sector.
  • Prioritise capital investment in emission reduction, energy and climate adaptation projects.
  • Proactively integrate climate change adaptation measures into Harmony to increase the resilience of our business and communities in the face of climate change impacts.
  • Maintain monitoring, tracking and reporting of Harmony’s climate change impacts, actions and resilience.

Our decarbonisation strategy focuses on transforming our assets into low-carbon consumers by:

  • Advancing the surface reclamation programme to produce ounces at lower energy intensity and growing our low-carbon metals and minerals portfolio
  • Decommissioning energy-intensive and low-margin assets to avoid generating high emissions for low returns
  • Driving efficiency programmes
  • Enhancing our energy portfolio mix with a strong pipeline of renewable and low-carbon energy sources
Case study:

Reducing greenhouse gases in South Africa

We are collaborating to protect biodiversity while fulfilling our business commitments, which have far-reaching economic impacts.

Learn more

FY23 PERFORMANCE AND FOCUS AREAS

In FY23, total electricity consumption due to underground mining was 3.6% lower.

We reduced our electricity intensity by 46% over the past ten years with our commitments to optimise energy efficiency and climate change mitigation. The graph below illustrates the success of our energy management programme, supported by our service provider, ETA Operations.

Mponeng (South Africa) and Mine Waste Solutions, (MWS, a reclamation operation in the Stilfontein/Orkney area), positively impact our performance. Although Mponeng is a deep-level mine, Mine Waste Solutions is less energy-intensive as a high-volume surface tailings retreatment operation. In tandem, these operations decrease energy intensity per tonne of ore treated.

Phase 1 of our renewables programmes is fully implemented and the board has approved Phase 2. We have also implemented small-scale solar projects at Nufcor and our Randfontein offices (South Africa).

Energy consumption (000MWh)1,3 FY23 FY22 FY21 FY20 FY19
Electricity 4 111 4 253 4 123 3 171 3 326
Diesel4 686 605 448 462 488
Other sources (petrol and heating oil)2 64 66 60 5 5
Total 4 861 4 924 4 631 3 638 3 819
Energy consumption intensity (MWh per tonnes treated) 0.09 0.09 0.09 0.14 0.15
  1. Annual UK government Department for Environment, Food and Rural Affairs conversion factors are used in Papua New Guinea to report GHG emissions. Technical guidelines for monitoring, reporting and verification of GHG emissions by industry are used in South Africa.
  2. Acquisition of Mponeng and Mine Waste Solutions operations from October 2020 (nine months reported in FY21).
  3. In Papua New Guinea, self-generated energy consumption is accounted for under diesel.
  4. Heating oil reported from FY21.

Reducing GHG emissions

Most of Harmony’s emissions are scope 2 as South Africa uses fossil fuel-generated electricity (see graphs below). Energy efficiency initiatives ensured the reduction in our GHG emissions. While we have seen a downward trend in energy intensity since FY20, the upward climb in total emissions since FY20 is due to the recent acquisition of the AngloGold Ashanti assets. The decline in total emissions in FY23 was a function of our aggressive renewable energy and efficiency programmes.

In terms of our decarbonisation strategy, in the short to medium term (FY23 to FY26) we remain focused on increasing our access to the renewable energy sources needed for renewable electrification and transportation, ensuring we are well positioned to support the transition to a clean energy future.

Further information

See discussions and additional data on our approach to climate change, energy and emissions management.

TCFD report 2023
ESG Report 2023
ESG data tables