Name of the Project
Harmony Gold renewable-energy projects.

Location
The first phase of the project will be located in Welkom, in the Free State, in South Africa.

Project Owner/s
Harmony Gold Mining Company.

Project Description
As part of its decarbonisation strategy and journey towards carbon net zero, Harmony is accelerating the expansion and roll-out of numerous renewable-energy projects across South Africa.

Phase 1 comprises a 30 MW solar energy plant. The company will be building three 10 MW plants at its Tshepong, Eland and Nyala operations.

The plants are expected to deliver 68 GWh to Harmony’s mining operations in the first 12 months, when fully operational, and mitigate 65 000 t of carbon dioxide equivalent yearly.

Phase 1 will be undertaken through a power purchase agreement (PPA).

In Phase 2, Harmony will build an additional 137 MW of renewable energy at various longer-life mines. This project will be self-funded and is expected to deliver about R500-million a year in electricity savings when it reaches full production in the 2025 financial year.

In Phase 3, Harmony plans to add an additional 56 MW of renewable energy. It is at the planning stage and progressing as expected.

Potential Job Creation
Not stated.

Capital Expenditure
Phase 1 will be done through PPA and, thus, Harmony capital will not be used. Phase 2, however, will be self-funded and is expected to cost about R1.5-billion. At current electricity prices, this project will have a three-year payback.

Planned Start/End Date
Phase 1 construction is expected to start in June 2022, with the first energy to be delivered into the grid in March 2023.

Phase 2 is expected to reach full production in the 2025 financial year.

Phase 3 is planned for completion in the 2026 financial year.

Latest Developments
Discretionary managed fund Mahlako Energy Fund has concluded its investment in an industrial independent power generation project for Harmony’s 30 MW PV portfolio.

This project is among the first projects to be developed, following changes to Schedule 2 of the Electricity Regulation Act.

The plants rank among the biggest solar PV plants for private offtake in South Africa to date, which Mahlako has said advances its vision of progressing the just transition and transformation of the country’s energy sector.

The fund, managed by Mahlako Financial Services, has invested alongside African Infrastructure Investment Managers’ (AIIM's) IDEAS Fund, and Rand Merchant Bank (RMB) as debt arranger.

In a separate statement, Harmony has said that it has completed environmental, social and governance-linked loans and started with construction of the three 10 MW solar PV plants.

The company has concluded a new syndicated and multitranche, multicurrency loan facility, aimed at sustainable development, as well as a PPA facilitating Phase 1 of its renewable solar PV energy initiative.

The project is funded by a project finance debt solution from RMB, a division of First Rand Bank, and with the support of African Clean Energy Developments, equity-funded by AIIM and Mahlako.

Key Contracts, Suppliers and Consultants
Harmony, Energy Group and BBEnergy (Phase 1 construction).

Contact Details for Project Information
Harmony Gold Mining Company group communications manager, Sihle Maake, tel +27 11 411 2312 or email sihle.maake@harmony.co.za
Harmony Gold Mining Company head of investor relations Jared Coetzer, tel +27 11 411 6073 or email jared.coetzer@harmony.co.za.