Energy alternatives for mining

27th September 2019 By: Mamaili Mamaila - Journalist

Energy alternatives for mining

ASHEN JUGOO We expect that there will be a remarkable increase in captive power projects throughout sub-Saharan Africa

The demand for electricity in South Africa continues to increase and there is no certainty that State-owned power utility Eskom will be able to meet that demand at a cost-effective price, says inter­national business law firm Fasken partner and finance and projects head Ashen Jugoo.

It is highly likely that there will be con­tinued development in the battery-storage sec­tor over the next few years. 

This trend, coupled with the reduced price of small-scale embedded genera­tion, makes it attractive for min­ing companies to establish their own power generation plants, he adds.

“This will allow for security of supply and reduce the costs of electricity.”

At this year’s Joburg Indaba, Fasken would like to address the suc­cess stories and challenges associated with captive plants.

“We have worked on financing solutions where a number of pro­jects have been financed within a single portfolio. 

“We also expect that there will be a remarkable increase in such projects,” states Jugoo.

Further, Fasken is a premium sponsor of the 2019 Joburg Indaba and has found it “impor­tant and compelling” to be an active participant in this confer­ence.

“Being an active participant in the industry is not only about the financial aspect – it is more about a meaningful contribution to the industry through a physical presence,” notes Fasken senior partner Lucas Moalusi.

The company intends to share its views on the status of the local min­ing industry, and how the industry should unfold to assist the sector in returning to its “glory days”, he asserts.

Moalusi believes that events, such as the Joburg Indaba, have created a platform to have an honest and uncensored discussion about matters affecting the mining industry. 

“The chal­lenge of guaranteed electricity supply is quite criti­cal to the success of the mining industry; this needs to be resolved sooner rather than later,” Moalusi concludes.