Pan African Resources recently deployed a 10 MW solar plant at their Evander gold mining site in a progressive shift towards renewable energy. This significant investment has already led to a decrease in the company’s all-in-sustaining costs (AISC) by over $10/oz, a trend CEO Cobus Loots predicts will continue given escalating Eskom tariffs.
Revealed during the unveiling of their lucrative 2023 financial results, the next phase of the company’s green journey is already underway. Construction of a 7.75 MW solar plant destined for Barberton Mines began in May 2023.Â
As reported by Mining Weekly, this venture aims to cater to the lion’s share of daytime energy needs for the Fairview mine. Moreover, a third-party power agreement, due to launch in early 2025, will guarantee up to 40 MW of power for a potential 15-year stretch. By 2030, these renewable projects and Evander Mines’ operational solar plant will curtail Pan Africa’s carbon emissions by nearly 30%.
The company’s eco-initiatives don’t end with solar energy. Evander Mines has launched a water recycling system, which promises cost reductions by allowing underground water to serve processing needs, thus minimizing dependency on municipal supplies.
In a session covered by Mining Weekly, Loots hinted at more renewable advancements in the upcoming year. “Our focus isn’t solely on solar; we’re also exploring possibilities in wind energy,” he said.
The company’s bullish stance on expansion is further evidenced by its recent acquisition of the Mintails gold-from-dumps project near Johannesburg. This cements Pan Africa’s presence with three major mining hubs in South Africa, adeptly balancing legacy liabilities and profits.
Looking forward, Pan African envisages a fruitful trajectory. By 2025, projections indicate gold production levels might surpass 200,000 oz annually, augmented by the Evander underground expansion and the integration of Mintails. The ensuing few years may also witness a refined portfolio balance, merging low-cost surface mining with high-grade covert ventures.
Pan Africa’s future-driven approach is broader than just production. The company continuously strategizes to insulate its business from South Africa’s unpredictable internal dynamics. Their mining rights portfolio, sometimes spanning till 2051, signifies long-term planning and stability.
Loots proudly reflected on the company’s track record: “Our history underscores our capacity not just to operate but to thrive in South Africa.” He further elucidated the company’s commitment to renewable energy, emphasizing its ambition to increase its renewable energy contribution in the ensuing year substantially.
For the year ending June 30, gold production stood at 175,209 oz, with projections for the subsequent financial year ranging between 178,000 and 190,000 oz. Measures to drive down costs, particularly in high-expenditure operations like Sheba and Consort mines, are also underway.
By 2024, AISC estimates hover around $1,350/oz, with profits projected at $60.7 million. Meanwhile, Pan Africa’s accessible cash and facilities rose to $84.7 million by the end of the fiscal year.
In conclusion, as global industries increasingly shift towards eco-friendly solutions, Pan African Resources stands out as a forerunner in the mining sector, leading with initiatives that prioritize sustainability without compromising profitability.
