South African mining group Northam Platinum Holding Ltd (JSE:NPH) has embarked on its first major renewable energy project, signing a power purchase agreement (PPA) related to an 80-MW solar project that will provide clean electricity for its operations at the Zondereinde mine.

The solar farm is expected to supply 220 GWh of energy per year directly into Zondereinde’s mining and smelting operations, independent of the local Eskom grid. The plant is already under construction and is scheduled to start generating power as of December 2025.

The PPA was signed with a consortium including the STANLIB Infrastructure Fund II, Royal Bafokeng Holdings Proprietary Limited and Energy Group. Project finance is being provided by Nedbank Limited and The Standard Bank of South Africa Limited.

Zondereinde is a platinum-group metals (PGM) ores mine located near the town of Thabazimbi in the Limpopo province. The PPA is expected to cut its carbon footprint by 22%.

“Northam is committed to sustainably reducing the environmental impact of our operations, and this, our first major renewable energy project, represents a significant milestone,” said Northam’s CEO Paul Dunne.

Northam seeks to reduce carbon intensity by 60% from a 2019 baseline by 2030. The company noted in the statement that it is at an advanced stage of progressing additional renewable energy projects, including solar, wind and battery storage initiatives.