Tharisa has started receiving renewable electricity at its South African platinum-group-metals and chrome operation, beginning the implementation of a long-term energy strategy as planned underground mining is expected to increase the mine’s electricity requirements substantially.
Initial deliveries began in September through a grid-wheeling arrangement with Etana Energy. The first volumes are expected to cover approximately 10% of the mine’s current monthly electricity consumption, with supply projected to increase under the existing long-term power purchase agreement (PPA).
Once fully implemented, the agreement is expected to provide around 70% of the operation’s current electricity requirements. Additional solar generation is scheduled to join the supply mix during the first quarter of 2027, followed by further wind generation later that year.
Renewable supply and underground expansion
Tharisa’s planned transition toward underground mining could roughly double electricity demand, increasing the importance of securing reliable power as the operation develops.
The existing PPA may therefore cover a smaller proportion of total consumption once underground production reaches scale. Additional electricity contracts or generating capacity will be needed if the company is to maintain a high level of renewable-power coverage as demand increases. The start of deliveries marks an operational milestone following an earlier contractual commitment. The power update did not include a new mine-financing package for the underground expansion.
Electricity security and mining costs
Energy security remains a significant operational consideration for South African mining companies, where grid constraints, supply interruptions and electricity-price volatility can affect production costs and investment decisions across mines and processing facilities.
Long-term renewable procurement can reduce exposure to electricity-market risks while lowering the carbon intensity of mineral production. For Tharisa, expanding renewable supply alongside underground development will be important to maintaining the intended cost and emissions benefits as electricity consumption rises.
Implications for European industrial supply chains
Tharisa produces platinum-group metals (PGMs) and chrome concentrates, commodities used in several European industrial supply chains. PGMs are important for automotive catalysts, chemical applications and emerging hydrogen technologies, while chrome is a key input for stainless-steel production.
As environmental reporting and supply-chain requirements tighten, the carbon intensity of raw materials is becoming an increasingly relevant consideration alongside physical availability. Renewable electricity could therefore improve the appeal of Tharisa’s output to industrial customers seeking to reduce the embedded emissions of their materials.
No additional PGM or chrome offtake agreement was announced alongside the renewable-power update. The next stage of the energy strategy will depend on expanding electricity supply to match the higher consumption anticipated from underground mining.
