Our transition pathway to decarbonising Harmony contributes to combating climate change. We are consistently striving to decarbonise our business through energy efficiency and our renewable energy programme. We are also progressing our climate resilience planning for Harmony’s operations to withstand and mitigate the effects of climate change.
We have implemented over 200 energy efficiency initiatives at our operations since 2016, cumulatively saving over R2.2 billion (US$143 million) in energy costs, equating to around 2.18Mt of CO2 saved. We have also reduced our electricity intensity by 46% over the past 10 years by optimising energy efficiency and climate change mitigation.
In FY24, our performance was driven by:
- More stable hydropower energy supply in Papua New Guinea following drought.
- The successful generation of energy from the Phase 1 and small scale solar projects, equating to 65.3GWh
Our approach
Our climate change and energy policy statement outlines our approach and commitment to participating in the global shift towards a low-carbon economy.
Our response to the climate change agenda is driven by our future ambitions to contribute to achieving the United Nations Framework on Climate Change objectives and the Paris Agreement’s goal to limit global warming to 1.5°C by the end of the century. We intend to do this by reducing our GHG emissions to net zero by 2045 and by saving R70 million (US$4.3 million) a year by 2026 on new initiatives.
We are currently undertaking a climate change resilience assessment to help us understand the impact of climate change on our business and to develop an operational readiness plan to help us combat the effects of this.
Decarbonising Harmony
Our decarbonisation strategy is guiding our operations to net zero GHG emissions by 2045 with a transition pathway whose focus areas consider the varying needs and challenges of our operating regions. They include:
- Energy efficiency and improving our energy mix: Investing in and generating renewable energy allows us to reduce our GHG emissions and reliance on grid-supplied electricity while increasing cost savings.
- Climate change adaptation: The nature-based solutions we implement at TSFs are cost-effective, advance biodiversity protection and land rehabilitation, and enable carbon absorption and sequestration.
- Re-engineering our portfolio: We allocate capital to projects that contribute to decarbonisation and address climate challenges, including using our gold and silver reserves to supply the metals used in renewable energy and electric vehicles.
- Decarbonising our transportation and value chain: We remain focused on renewable energy sources needed for renewable electrification and transportation, ensuring we are well-positioned to support the transition to a clean energy future.
In 2023, we received approval of our 1.5°C SBTi near term target to reduce absolute scope 1 and 2 GHG emissions by 63% by FY36, from an FY21 base year. Since updating our decarbonisation strategy in FY24, we expect a marginal exceedance of the interim target in FY26. We are however on track to successfully overshoot our approved target by at least 15-20% by 2036, due to significant investments in renewable energy, well into the future.
GHG emissions and energy efficiency
Our GHG emissions in FY24 were as follows:
Due to the increased energy use required for the development of the Zaaiplaats project, our energy consumption slightly increased in the year from 0.093MWh per tonnes treated in FY23 to 0.094MWh in FY24. However, the contribution from our renewable projects and energy efficiency programme was banked, and we were able to keep our energy consumption intensity the same as last year.
Our deep underground mining operations accounted for 89% of the group’s total electricity consumption. Total electricity consumption due to underground mining was 1% higher when compared to FY23, up from 4 194GWh to 4 229GWh. The increase in energy intensity was largely as a result of the development of Zaaiplaats, and the changeover to electrical compressors at Doornkop
Regional performance
South Africa
In South Africa, we are transforming our assets from high-energy to low-carbon consumers by:
- Advancing our surface reclamation programme to produce ounces at lower energy intensity
- Decommissioning energy-intensive and low-margin assets to avoid generating high emissions for low returns
- Driving energy efficiency programmes and enhancing our energy mix with a strong renewable and low-carbon energy pipeline. We have successfully built and commissioned renewable energy plants since May 2023 in an effort to reduce Harmony’s carbon footprint.
We implemented and maintained 43 energy optimisation initiatives in FY24, resulting in an estimated saving of 324GWh and a cost saving of R532 million (US$28.4 million). We are also striving to improve our energy mix and to implement our renewable energy and efficiency rollout plan.
Papua New Guinea
At Hidden Valley, we are working to optimise our mix of hydropower and diesel generation, while exploring new technologies to reduce emissions.
Australia
At Eva Copper, we are designing operations to incorporate renewable energy from the outset, with plans to connect to Queensland’s increasingly renewable grid.
Future focus areas
With the results of the climate change assessment expected in FY25, we continue to work towards delivering on our approved SBTi target. This includes our commitment to reducing absolute scope 1 and 2 GHG emissions by 63% by FY36.
Case studies
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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.
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Reducing greenhouse gases in South Africa
We are developing several renewable energy projects across our South African footprint. Phase 1 of this programme, supplying 30MW of solar power through an independent power producer, is complete with installations at Tshepong, Nyala and Eland.
Further information
See discussions and additional data on our approach to climate change, energy and emissions management.