Powering Extraction: Use of Renewables in the Minerals Sector

The document argues that renewable energy (RE) is now a viable, low-cost alternative to grid and diesel power for mining operations, particularly through hybrid systems. While high initial capital expenditure and intermittency pose challenges, the long-term total cost of ownership is lower over a 20-year period. The paper highlights the role of energy storage in stabilizing supply and the potential for portable solar systems to support exploration. It also notes that the shift toward electric vehicles in mining will further drive RE demand. In South Africa, major mining companies are already seeking to self-generate solar power to reduce grid dependence.

• Renewable energy (RE) is more cost-effective than grid or diesel power over a 20-year timeframe, although it requires a shift from low capital expenditure (capex) and high operating expenditure (opex) to high capex and low opex.
• Hybrid energy systems, which combine RE with diesel generators or the grid, address the intermittency of solar and wind power and allow for higher RE penetration by using traditional sources as a top-up or for spinning reserves.
• Diesel generators are common at remote sites but are inefficient, converting only 40% of fuel energy to electricity, and expose operators to fuel price volatility and potential carbon taxes.
• The adoption of RE in mining faces challenges including a lack of developed service infrastructure, skills shortages for installation at remote sites, and limited local job creation during construction.
• Technological advancements in containerisation and high-efficiency panels have enabled the creation of portable and modular RE systems, which are particularly useful for exploration sites where the mine's lifespan may be short.
• In South Africa, the mining industry is actively reducing grid dependence, with the Minerals Council SA reporting 1.5 GW of energy projects in the pipeline and companies like Anglo American and Gold Fields applying to self-generate solar power.
• The transition to electric vehicles (EVs) in the mining sector is expected to increase the demand for on-site electricity and RE capacity, as long-haul electric trucks are 45% more efficient than diesel versions.
• Post-mining planning should incorporate RE systems for community or utility use to generate sustainable benefits from degraded land.

APA

South African Institute of International Affairs (2020). Powering Extraction: Use of Renewables in the Minerals Sector. https://saiia.org.za/research/powering-extraction-use-of-renewables-in-the-minerals-sector/

Chicago

South African Institute of International Affairs. Powering Extraction: Use of Renewables in the Minerals Sector. 2020. https://saiia.org.za/research/powering-extraction-use-of-renewables-in-the-minerals-sector/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Powering Extraction: Use of Renewables in the Minerals Sector |date=7 August 2020 |url=https://saiia.org.za/research/powering-extraction-use-of-renewables-in-the-minerals-sector/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2020powering, author = {{South African Institute of International Affairs}}, title = {{Powering Extraction: Use of Renewables in the Minerals Sector}}, institution = {South African Institute of International Affairs}, year = {2020}, month = aug, url = {https://saiia.org.za/research/powering-extraction-use-of-renewables-in-the-minerals-sector/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }