JV to look for renewables, energy efficiency opportunities for African mines

1st August 2014 By: Anine Kilian - Contributing Editor Online

Infrastructure solutions company Akhani Group has signed a joint venture agreement with South African energy management services company Energy Cybernetics to identify renewable-energy and energy efficiency opportunities for mining companies in sub-Saharan Africa.

Akhani Group provides turnkey support infrastructure solutions for the mining, oil and gas, and energy sectors and related industries and is based in South Africa, Mozambique and Tanzania.

“The supply and availability of reliable and cost-effective energy to sites in remote locations is an important business driver for any mining operation. In many African countries, lagging infrastructure development means that many sites have to rely on diesel fuel as the primary source of energy,” says Akhani Group COO Deon Fuhri.

He notes that the cost of electricity generated from the combustion of diesel fuel is very high, compared with other sources of energy and an alternative and viable source of energy to such sites is electricity generated by solar photovoltaic (PV) technology.

“Energy Cybernetics’ recent venture into the PV market by establishing its renewable energy arm SUNCybernetics, with the backing of international knowledge transfer and skills development, places the company in a position to supply turnkey PV plants of the magnitude required in applications such as mining,” he comments.

Fuhri further says combining Akhani and Energy Cybernetics’ strengths will allow the identification and development of opportunities where solar PV can substantially reduce the overall cost of energy of a site.

An initial target set by both companies is to reduce the monthly energy cost of such sites by between 15% and 20%.

“By implementing energy efficiency projects in conjunction with the supply of solar PV-generated electricity, sustained energy cost savings with very attractive returns become possible,” he says.

Fuhri notes that logistics is a major challenge facing the implementation of renewable-energy solutions, especially in remote African regions.

He adds that additional security measures also need to be implemented to prevent theft of solar PV components, noting that there has to be a paradigm shift within mining operations for renewables to make a financial and an environmental difference.

“When we talk to clients, they are initially excited about incorporating renewables into their operations. However, when a solution is presented, they are hesitant to implement a renewables plan,” he says.

Fuhri notes that the one challenge facing the implementation of a South African hybrid solution is the current inexpensive energy costs for local mines.

“They get a highly discounted rate from Eskom. The cost of energy for a mine in Africa is three times more than for a mine in South Africa because they mainly run on diesel-powered generators,” Fuhri says.

He acknowledges that some mining companies operating in South Africa are considering the implementation of alternative energy solutions, such as keeping their essential operations connected to the grid and taking other operations, such as cooling and ventilation systems, off the grid.

“I do not, however, foresee mining companies in South Africa running solely on renewables any time soon,” he says.