South Africa’s Exxaro Resources is reviewing what the mine of the future could look like amid a modernisation drive, Exxaro CEO Ben Magara pointed out in response to Mining Weekly during a media question-and-answer session, with opportunities being created for innovation and technology, including AI.
“We’re really driving the modernisation of mining and reviewing things around what the mine of the future could look like,” Magara reported.
The way Exxaro is providing green electrons goes beyond modernisation into crucial climate change abatement.
The latest example is the commissioning by this Johannesburg Stock Exchange-listed company of its Lephalale solar project, the LSP, a 68 MW PV facility built to supply clean, behind-the-meter energy directly to Exxaro’s Grootegeluk coal mine in Limpopo province.
Alternating current is generated by 129 024 solar panels across 185 ha with the R1.7-billion investment funded by Cennergi, Exxaro’s agile renewable-energy subsidiary. Commercial operation started in April with the official LSP inauguration taking place in July.
Close to a third of Grootegeluk’s electricity is now green energy, which brings with it a reduction in carbon emissions and a saving in electricity costs.
“The 68 MW we’re putting into Grootegeluk from the Lephalale solar project is about 30% of our consumption on that mine, and on that 30%, we’re now making carbon emission savings of about 22%, but the electricity savings are about R100-million on the 30% power contribution coming from the Lephalale solar project.”
Cutting diesel consumption further with truck pantographs and overhead trolley lines is also under scrutiny. “We’re looking at the trolley lines that we can use for the trucks in order to be more efficient and bring technology to drive not just productivity but also capital emissions reductions.”
When a truck connects to the overhead trolley line, it shifts power from the onboard diesel generator directly to the electric wheel motors, dropping the engine to an idle and increasing speed on grades.
“Our plans are definitely to bring in battery energy storage systems, but also in the phase two additional panels. So, if we can drive that with the technology that we are applying on our trucks, the pantos or the trolley line that you can use, we believe we can actually even create more savings in diesel, which is more the Scope 1 emissions than just the Scope 2.
“All our mines are currently looking at life extension opportunities, so if we can make sure each mine has a minimum of 20 years’ life, it fits the kind of power purchase agreements you can get with solar.
“So our intention, as part of decarbonisation, is that our mines could actually all go onto solar and wind energy, but obviously you still need baseload of coal when you don’t have wind or solar.
“But bottom line is, we’re still on target for our 40% reduction in emissions by 2030, 75% reduction by 2040, and carbon neutrality by 2050.
“Manganese now coming on board is also presenting itself for us to drive our decarbonisation. Again, it’s intended to make sure that our diversified portfolio will end up providing earnings from future-facing minerals and renewable energy above 50% of our total earnings without reducing coal, and that’s the strategy.”
On the technology front, Exxaro is replacing some of its old trucks. “We are buying about seventeen 220 t trucks, and they’ve got much better fuel technologies, even better for the operator when he’s on that machine. So really we’re harnessing the opportunity for technology that can take us to the next level.
“And on the AI side, I think there are many opportunities, even in ore sorting. If you look at providing the machine learning you get from AI, you can do machine sorting and improve recoveries by simply taking out the gangue material.
“So, Exxaro is very focused on innovation and technologies and the use of AI in a good way. But nothing replaces skilled expertise to mine and we are focused on also providing leadership development, driving career skills, because we know interpersonal relationships can never be replaced by AI,” Magara emphasised.
Deliberated on by the board is the question of autonomous vehicles, and their deployment in most parts of the world, but this deliberation is taking place against the backdrop of the company being very conscious of South Africa’s job creation challenge and the impact that automation may have.
RENEWABLES CONTINUING TO SCALE
Exxaro’s renewable-energy business continued to scale, with energy generation increasing by 12% to 378 GWh.
Wind generation was lower owing to weaker Eastern Cape wind conditions, although plant availability was strong at 98%.
The benefit of having wind and solar dovetail is seen in the extent to which there is improved performance in earnings before interest, taxes, depreciation and amortisation numbers.
The on-schedule and on-budget Karreebosch wind farm project continues to progress, with commercial operation expected in the first half of 2027.