Zimbabwe mining firm to generate 150 MW from solar

From the newsletter

Jin An Group, a Zimbabwe-based mining company plans to construct a 150 MW solar PV project. This will be done in three phases with the first phase of 20 MW to be developed at a cost of $25 million. Shipment of the panels from China is underway, and construction is expected to be completed in Q2 this year.

• The declining cost of solar and wind energy is making renewables a financially viable alternative for energy-intensive mining operations, especially in locations with unreliable grid access in Africa.

• Moreover, investors and consumers are increasingly prioritising ESG (Environmental, Social, and Governance) criteria, forcing mining companies to demonstrate tangible commitments to decarbonisation and sustainable practices.

More details

• Jin An Group's core business is ferrochrome production (an alloy of iron and chromium), an energy-intensive process requiring 3,500 to 4,000 kWh per ton of alloy.

• The second phase of the solar project will feature a 30 MW expansion, pending approval from Gweru City Council for land allocation with the company aiming to develop a third 100 MW solar power plant at the Chessa substation, located 26 km outside Gweru.

• The company anticipates to be done with the first phase of the project by the end of Q2 2025, providing a stable power supply for ferrochrome production.

• Zimbabwe faces an electricity dilemma. It currently cannot sustain its consumers' 2,500 MW electricity demand with its current subpar capacity of under 1,500 MW.This energy shortage results in an estimated 6.1% annual GDP loss, according to the World Bank.

• Moreover, Zimbabwe and in particular its mines relies heavily on coal for electricity generation, which accounts for 57% of the nation's fuel-based CO2 emissions.

• Not only are they unreliable (partly due to old infrastructure and lack of maintenance) they are also unsustainable.

• To continue exporting 100,000 metric tonnes and grossing approximately $90 million a year from ferrochrome exports, and to maintain its rank as the top foreign currency earner in Zimbabwe, Jin An Group's move to solar power is absolutely crucial.

• The solar project establishes a reliable electric grid mitigating losses that may be accrued from the unstable main grid while being sustainable. The project addresses Zimbabwe's energy deficit and contributes to the country's renewable energy capacity.

• Previously, persistent power outages in Zimbabwe's mining sector have led to significant economic losses, with a 15% decline in gold production to 30 tonnes in 2023 and an estimated $500 million in lost revenue reported by the Chamber of Mines in 2024.

• This project exemplifies a paradigm shift towards a sustainable and secure energy future for African mining, an industry worth approximately $248 trillion.

• Other countries implementing renewable mining projects include SOLA Group’s, in partnership with Tronox Mineral 200 MW of solar energy projects in Lichtenburg, North West Province in South Africa, Zambia’s First Quantum Minerals with over 430 MW of large-scale solar and wind projects to power its copper mining operations and  Namibia and Mali’s B2Gold’s solar power at its Otjikoto mine in Namibia, including battery storage and Fekola mine in Mali, to significantly reduce their reliance on heavy fuel oil.

Our take

• The cost of inaction on renewables has now surpassed the cost of action. For mining companies in Africa to ensure longevity and profits, they have to engage renewables, immediately.

• The second logical step is for governments to streamline policies for renewable energy adoption in their countries. Jin An group is on to something but if the government of Zimbabwe does not implement policies and incentives that are inviting for renewables, this might be their last.

• Still, on mining and renewables, a seamless transition requires a balanced approach, acknowledging the continued role of existing technologies, including fossil fuels. Accurately predicting and managing the integration of renewables to replace older technologies is a skill Africa critically needs to develop.