Powering Extraction: Use of Renewables in the Minerals Sector

The document argues that renewable energy (RE), particularly in hybrid systems combining solar or wind with diesel or grid power, is increasingly viable for the mining sector. While RE requires higher initial capital expenditure (capex) compared to diesel, it offers lower operating expenditure (opex) and protects mines from fuel price volatility over a 20-year period. Key challenges include the intermittent nature of RE, which necessitates energy storage or hybrid configurations to meet the constant 24-hour baseload demand of mines, and a shortage of skilled technicians for installation at remote sites. The brief highlights a trend toward self-generation in South Africa and the potential for portable RE systems to support exploration. It recommends promoting RE for extraction efficiency, developing mobile solar systems, expanding specialized technical education, and utilizing post-mining land for community or utility RE projects.

• Renewable energy (RE) is more cost-effective than grid or diesel power over a 20-year timeframe, although it shifts the financial burden from low capex/high opex to high capex/low opex.
• Stand-alone solar or wind systems are unsuitable for mining because mines require a constant 24-hour baseload of electricity, whereas RE production is intermittent. This necessitates the use of energy storage or hybrid systems (RE combined with grid or diesel).
• In South Africa, solar PV is identified as having the highest potential for mining use. The economic case is strengthened by the high cost of grid connections and significant price increases in grid supply, which rose by 346% between 2007 and 2015.
• The adoption of RE in mining faces social and technical hurdles, including a lack of local skilled labor for installation and maintenance, which can lead to local hostility because RE projects create fewer jobs than traditional operations.
• Technological advancements in containerisation and mounting systems now allow RE systems to be portable, enabling their use at exploration sites and reducing the risk associated with the high initial capex of permanent installations.
• There is a growing trend of mining companies seeking energy independence through self-generation. In South Africa, Anglo American has applied to generate 75 MW of solar power at Mogalakwena Platinum Mine, and Gold Fields has applied for 40 MW at South Deep Mine.
• The transition to electric vehicles (EVs) in mining, such as long-haul electric trucks which are 45% more efficient than diesel versions, is expected to increase the demand for on-site electricity and further drive RE installation.

APA

LIMPITLAW, D. (2020). Powering Extraction: Use of Renewables in the Minerals Sector. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2020/08/Policy-Briefing-198-limpitlaw.pdf

Chicago

LIMPITLAW, DANIEL. Powering Extraction: Use of Renewables in the Minerals Sector. South African Institute of International Affairs, 2020. https://saiia.org.za/wp-content/uploads/2020/08/Policy-Briefing-198-limpitlaw.pdf.

Wikipedia

{{cite report |last1=LIMPITLAW |first1=DANIEL |title=Powering Extraction: Use of Renewables in the Minerals Sector |publisher=South African Institute of International Affairs |date=July 2020 |url=https://saiia.org.za/wp-content/uploads/2020/08/Policy-Briefing-198-limpitlaw.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{limpitlaw2020powering, author = {LIMPITLAW, DANIEL}, title = {{Powering Extraction: Use of Renewables in the Minerals Sector}}, institution = {South African Institute of International Affairs}, year = {2020}, month = jul, url = {https://saiia.org.za/wp-content/uploads/2020/08/Policy-Briefing-198-limpitlaw.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }