Gold Fields Welcomes NERSA Approval Of South Deep Solar Plant

Rhea-AI Summary

Gold Fields Limited (GFI) has received approval for a 40MW solar power plant at its South Deep mine from the National Energy Regulator of South Africa (NERSA). This project is expected to supply approximately 20% of South Deep's average electricity needs and is anticipated to enhance power reliability and affordability. The company aims to reduce its carbon emissions by partially replacing coal-fired electricity from Eskom. This initiative follows successful renewable energy implementations at its Australian mines, increasing the group's renewable energy contribution to around 11% upon commissioning.

Positive

• Approval for 40MW solar power plant expected to supply 20% of South Deep's electricity.
• Enhances reliability and affordability of power supply to the mine.
• Partially replaces coal-fired electricity with renewable energy, reducing carbon emissions.

Negative

• None.

JOHANNESBURG, Feb. 25, 2021 /PRNewswire/ -- Gold Fields Limited (Gold Fields) (JSE: GFI) (NYSE: GFI) welcomes the electricity generation licence approved today by the National Energy Regulator of South Africa (NERSA) for the construction of a 40MW solar power plant at its South Deep mine.

The acting CEO of NERSA now has to authorise the license, a decision that should be forthcoming over the next two weeks. All the regulatory approvals to proceed with the project are then in place.

Gold Fields will update its definitive costings and finalise all the required internal processes to commence the project as soon as possible. The solar plant has the potential to provide around 20% of South Deep's average electricity consumption.

Says Nick Holland, Gold Fields' CEO: "The solar power plant will increase the reliability and affordability of power supply to South Deep, ultimately enhancing the long-term sustainability of the mine.

"The approval of this licence sends a strong, positive message to mining companies and their investors, potentially leading to decisions being taken to sustain and grow mining operations in the country, especially in deep-level, underground, marginal mines. Enabling companies to generate their own power also gives Eskom room to address operational issues at its power plants."

Gold Fields' energy objectives are based on four pillars – energy must be reliable, available, cost-effective and clean – which promote a shift to self-generation using renewable energy sources. "We are fully committed to making our contribution towards net-zero emissions," says Holland.  

During 2020, Gold Fields successfully implemented solar and wind power plants, backed by battery storage, at two of its Australian mines, Agnew and Granny Smith, and committed to renewables at its other Australian mines, Gruyere and St Ives, as well as the Salares Norte project in Chile when it starts operations in 2023. All its other mines are also reviewing renewable energy options.

Since full commissioning of the Agnew microgrid, renewable electricity averages over 55% of total supply at the mine. During 2020, renewable electricity averaged 8% for the Australia region and 3% of total Group electricity. Once the South Deep project is commissioned, renewable's contribution to the Group total will rise to approximately 11%.

Holland says: "We expect our investment in renewable and low-carbon energy sources to contribute significantly to our carbon emission reductions over the next few years. Power from the South Deep solar plant will partially replace coal-fired electricity from Eskom, enabling us to significantly reduce our Scope 2 carbon emissions."

Notes to editors

About Gold Fields

Gold Fields is a globally diversified gold producer with nine operating mines in Australia, Peru, South Africa and West Africa (including the Asanko JV), as well as one project in Chile. We have total attributable annual gold-equivalent production of 2.2Moz, attributable gold-equivalent Mineral Reserves of 51.3Moz and Mineral Resources of 115.7Moz. Our shares are listed on the Johannesburg Stock Exchange (JSE) and our American depositary shares trade on the New York Stock Exchange (NYSE).

Enquiries

Investors

Avishkar Nagaser
Tel:  +27 11 562-9775
Mobile:  +27 82 312 8692
Email: Avishkar.Nagaser@goldfields.com

Thomas Mengel
Tel:  +27 11 562-9849
Mobile:  +27 72 493 5170
Email: Thomas.Mengel@goldfields.com

Media

Sven Lunsche
Tel: +27 11 562-9763
Mobile: +27 83 260 9279
Email: Sven.Lunsche@goldfields.com

 

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SOURCE Gold Fields Limited

FAQ

What is the significance of Gold Fields' solar power plant approval for GFI?

The approval allows Gold Fields (GFI) to construct a 40MW solar power plant at its South Deep mine, potentially supplying 20% of its energy needs and enhancing sustainability.

How will the solar plant impact Gold Fields' operations?

The solar plant is expected to improve reliability and affordability of electricity, while also reducing carbon emissions by replacing coal-fired energy from Eskom.

When is the solar power plant at South Deep expected to start operations?

Following the approval, Gold Fields will finalize internal processes and update costings to commence the project as soon as possible, with commissioning expected in the near future.

What percentage of Gold Fields' energy will come from renewable sources after the solar plant is commissioned?

Once the South Deep solar plant is operational, renewable energy's contribution to Gold Fields' total energy supply will rise to approximately 11%.

How does this approval affect the mining sector in South Africa?

The license approval sends a positive message to mining companies, encouraging investment and growth in sustainable energy practices within the sector.