(Ecofin Agency) – In South Africa, renewable energies are increasingly attracting players in the mining sector. Thanks to power purchase agreements, manufacturers ensure reliable, low-cost electricity for their activities, while remaining committed to sustainability.
The company Petra Diamonds announced on May 23 that it had entered into long-term power purchase agreements (PPAs) for the supply of renewable energy to its Cullinan and Finsch diamond mines. The agreements were signed with Etana Energy, a South African energy trader.
“These agreements are part of Petra’s renewable energy strategy and demonstrate the company’s continued integration of sustainability ambitions into everything it does. Additionally, as part of our ongoing efforts to reduce our cost base, the Guaranteed Tariff is expected to lead to a sustained reduction in our energy procurement costs“, commented Richard Duffy, Managing Director of Petra Diamonds.
The agreements will provide each operation with between 36 and 72 percent of the projected load requirements beginning in fiscal year 2026 using the existing power grid. This will enable Petra to move forward in achieving its sustainability ambitions,
The company aims to achieve a reduction in its category 1 and 2 greenhouse gas emissions of 35 to 40% by 2030, compared to its 2019 reference level. In addition to reduction of the company’s carbon footprint, the share of energy coming from Etana will contribute to “predictability of energy costs and should result in sustainable savings over the life of power purchase contracts.»
This policy, which allows you to commit to the climate while securing your supply at lower costs, is increasingly favored by manufacturers in South Africa, particularly those in the mining sector.
Abdullah Diop
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