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, 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 build 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
Nedbank, acting through its corporate and investment banking (CIB) division, has coordinated and structured a financing solution for Harmony Gold to enable the miner to refinance and upsize its key corporate debt facilities through a R10-billion package.

Harmony has formally appointed Nedbank CIB to act as a global coordinator and bookrunner, as well as a global sustainability coordinator, to structure and arrange the substantial dual currency, multitranche debt package.

The green loan will be used exclusively to finance the construction of Harmony’s second phase of solar PV projects, which comprise up to 11 separate plants. These are designed to increase the miner’s renewable-energy generation capacity by 137 MW, enabling Harmony to transition some of its electricity supply to cleaner sources of energy.

According to Nedbank CIB sustainable finance solutions head Arvana Singh, the successful conclusion of this transaction is particularly significant in the context of the South African mining industry, given that mining is one of the country’s primary industrial sectors that has a significant potential impact on the environment.

Harmony treasury CFO Herman Perry has said that the sustainable finance transaction signals the start of the next important chapter in the mining company’s well-established sustainable development journey.

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.