Page 17 - AfrElec Week 23 2022
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AfrElec RENEWABLES AfrElec
SA’s Mahlako fund supports 30MW
solar project at gold mine
SOUTH AFRICA A South African fund that supports the develop- with Harmony and Mahlako. This portfolio fur-
ment of renewable energy projects has invested ther entrenches IDEAS as the leading investor
in an industrial independent power generation in the commercial and industrial private power
project at a local gold mine, it said in a release. market. We look forward to pursuing additional
Mahlako Energy Fund’s investment in the investments in this sector.”
30MW solar photovoltaic project at Harmony The construction phase is anticipated to com-
Gold’s operations is one of South Africa’s largest mence in June 2022, with the first energy deliv-
such plants and purportedly the biggest power ered onto the grid in March 2023, the fund said
purchase agreement (PPA) for commercial and in the release. The project is expected to produce
industrial private offtake in the country to date. 1.3TWh of energy over the 20-year lifespan of
The project, situated in the Free State Prov- the facilities.
ince in the central part of the country, feeds In a separate release on June 3, Harmony
energy into Harmony Gold’s operations. It com- Gold, which aspires to be net zero by 2045, said
prises three power facilities expected to deliver the first phase of its journey towards renewables
68GWh in the first 12 months to Harmony is the 30MW solar energy plant in the Free State.
Gold’s mining operations when fully operational Phase two will entail the building of an addi-
and mitigate 65,000 tonnes of carbon dioxide tional 137MW of renewable energy at our var-
equivalent per year. ious longer-life mines while the third phase is at
“This project is further testimony to Mahl- the planning stage.
ako’s commitment to energy security and sus- Harmony Gold expects phase two of its
tainable investments while providing superior renewable energy project to deliver over
returns for our investors,” said Makole Mupita, $32.5mn per annum in electricity cost savings
principal of the Mahlako Energy Fund. once it reaches full production in 2025.
“The fund already completed an investment “The ESG-linked financial transactions that
into the first operational energy wheeling pro- we have concluded, alongside the construc-
ject in South Africa, and now into the biggest tion of the solar energy plants, are a watershed
PPA under the new 100MW regulation, further moment for Harmony and our host communi-
displaying the innovative approach taken by the ties,” said Harmony Gold chief executive officer
Fund in deploying its capital.” Peter Steenkamp.
The fund, managed by Mahlako Finan- “Not only will these transactions help us to
cial Services has invested alongside African deliver on our environmental and social obliga-
Infrastructure Investment Managers (AIIM)’s tions and undertakings, but they will also de-risk
IDEAS Fund, and Rand Merchant Bank as debt the business and deliver many socio-economic
arranger. benefits. ‘Mining with purpose’ is ensuring that
Sean Friend, investment director at AIIM our investors and other stakeholders continue
and co-portfolio manager of the IDEAS Man- to derive value and positive returns in a global
aged Fund, said: “We are excited to conclude this climate of energy uncertainty.”
transaction and create a long-lasting partnership
Week 23 09•June•2022 www. NEWSBASE .com P17
