South African mining giant mulls PV plant to escape utility fallout

February 13, 2019
Facebook
Twitter
LinkedIn
Reddit
Email
Eskom's financial woes are pressuring energy-intensive industries to tap into new sources (Credit: Tim Johnson / Unsplash)

Talks are underway at Harmony Gold Mining Company on whether to develop 30MW of solar in South Africa to help shield the firm against ongoing turmoil at state-owned utility Eskom.

The mining giant confirmed the potential solar play during a Q2 2019 earnings call held on Tuesday, after it emerged its net profit had nosedived to US$5 million in H2 2018 from US$65 million in H2 2017.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“We're also looking at energy mix. In fact, we've just gone out on procurement for a 30MW solar [sic] in Welkom,” Melanie Naidoo-Vermaak, sustainable development executive at Harmony Gold, is quoted as saying in the transcript.

“Once we've got the licensing in place to run this, we'll be able to decide whether or not we progress it,” she added.

Her comments followed scrutiny by analysts over how Harmony plans to respond to recent troubles at Eskom, which has threatened a 15% power price increase even as local media runs rife with headlines over ballooning debt levels and technical bankruptcy.

Analyst Yatish Chowthee from Macquarie wanted to know whether Harmony Gold would require a “massive rethink” of strategy and planning if Eskom follows through with price raises. 

“Obviously, that's a concern,” came the response of CEO Peter Steenkamp. Energy-intensive mines such as Moab Khotsong and Tshepong would be impacted, while the Kusasalethu operation would likely need to be downsized, he admitted.

Leon Esterhuizen from Nedbank probed again later in the call, stating he was not “quite happy” with Steenkamp’s response. “To sit back and wait for [Eskom] to put up their prices and kill the industry doesn't seem to be the way to go,” Esterhuizen remarked.

Steenkamp countered with claims around the “drastic” cuts in power consumption he said Harmony has achieved. “What we have not done is that to try and generate something on our own,” he said, adding that projects to that effect are now being initiated.

Transcript provided by Seeking Alpha

Read Next

October 17, 2025
Norwegian renewable energy firm Scatec has signed lease agreements for 64MW of solar PV and 10MWh of energy storage capacity in Liberia and Sierra Leone.
October 16, 2025
Off-grid solar company Sun King has revealed plans to set up manufacturing operations in Kenya and Nigeria.
October 8, 2025
Officials from Norway and Egypt have agreed provisional terms for the financing of the Dandara solar park in Egypt, which is being built and operated by Norwegian IPP Scatec.
October 6, 2025
An expert panel has identified a series of grid failures that led to April's unprecedented power outage in Spain and Portugal, ruling out renewables as the leading cause.
October 2, 2025
FRV Australia has announced the completion of its largest solar project to date, the 300MW Walla Walla Solar Farm in New South Wales.
September 29, 2025
Fortescue has established a strategic partnership with Chinese solar manufacturing giant LONGi to supply solar PV modules as part of its ‘Real Zero’ emissions by 2030 strategy.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 10, 2026
Frankfurt, Germany
Solar Media Events
March 24, 2026
Lisbon, Portugal