Africa's mining sector needs reliable power: Aggreko

Zawya

04-08-2025

Africa's mining sector requires power reliability as a matter of survival, making it critical for companies to invest in solutions that deliver longevity and reliability, says Johan Helberg, Head of Sales for Africa at Aggreko, a provider of energy solutions.
According to the International Monetary Fund, global demand for critical minerals is set to increase significantly.
For nickel, demand will double between 2022 and 2050, cobalt will triple, and lithium will increase tenfold says the International Energy Agency – and sub-Saharan Africa has an estimated 30% of these minerals in reserves.
The region has immense potential, but realising the potential requires reliable energy solutions, particularly as mining operations across the continent continue to grapple with unstable power grids, rising energy costs, and increased pressure to meet sustainability goals, according Helberg.
As the Boston Consulting Group pointed out in its 2024 Africa Mining Outlook analysis, mining is not an easy business but its complexity is compounded by energy instability, demand for cleaner energy supplies, and costs.
The impact of unreliable energy on the mining sector is extensive. Energy supply shortages have a direct impact on a mining organisation's bottom line as companies have to invest in alternative solutions and failovers that can cost upwards of 30% of their total cash operating costs.
The industry is reliant on continuous operations to remain profitable which makes reliable power crucial to remaining operational and financially stable.
A study undertaken by Nelson Mandela University in South Africa, for example, found that loadshedding has a long-term negative impact on mining equity returns and impacts on stock viability for international investors.
The cost of energy unreliability makes a compelling case for hybrid energy solutions designed to not just mitigate the risks but to provide mining organisations with the tools they need to build resilient power infrastructure.
These hybrid systems combine traditional power sources with renewable energy and battery storage to create robust energy platforms that ensure mines can maintain operations even when the grid fails.
By blending multiple energy sources, they offer immediate fail-over energy provision within a single, intelligent system that prioritises both reliability and efficiency.
Hybrid also allows companies to distance themselves from the complexities that continue to plague power management, generation and infrastructure on the continent.
Regulatory and policy uncertainty is affecting approvals and generating uncertainty when it comes to establishing independent power solutions, and there remain financial and infrastructural challenges that inhibit investment and growth, claims Helberg.
The effectiveness of hybrid systems lies in three key pillars.
The first is that hybrid systems offer mining organisations redundancy through multiple power sources.
When one fails, others can compensate which ensures continuous operations and reduced risks and costs.
This is particularly useful in remote mining locations where grid connections are weak or non-existent.
The second is that these systems incorporate battery storage technology which acts as a buffer against power fluctuations while providing immediate access to power on demand.
Battery storage systems have the added benefit of improving overall plant efficiencies while reducing fuel consumption and maintaining power quality.
This technology can help mining operations prioritise stable power supply during peak demand periods or when renewable sources are temporarily unavailable.
Finally, hybrid brings a new level of scalability and flexibility to operations.
These are critical when considering how rapidly a mine's power needs can change thanks to both internal and external factors.
Modern hybrid systems offer mines the ability to adjust and scale energy provision and structure according to demand and to create a power infrastructure that fits their operations as they evolve.
However, implementing an effective hybrid solution needs to be strategic and well engineered, finding the optimal balance between sustainability, cost and reliability.
This balance is particularly important within the African context where operational challenges can be more pronounced due to infrastructure limitations and operating in rural locations.
Success means customising each hybrid solution to meet the unique power requirements, environmental conditions and operational constraints of each mining operation, and to partner with an energy provider that understands these constraints and knows how to develop relevant, tailored solutions, states Helberg.
The financial aspect of hybrid systems is also important. While the initial investment appears to be costly, the long-term benefits across operational stability, reduced downtime and reliable output can outweigh these.
There are financing solutions that have evolved to support the sector in its move towards sustainable and reliable energy as well.
The Build Own Operate Maintain (BOOM) model, for example, is a modern financing option that allows for the mining company to access reliable power without substantial upfront capital expenditure.
Aggreko's hybrid solutions seamlessly integrate cutting-edge solar power and battery technology with traditional fuels like diesel, offering a blend of low emissions and high reliability.
These systems are designed to prioritise solar power, maximising efficiency and minimising environmental impact.
During periods of high sunlight, batteries store solar energy to be used throughout the day, while generators automatically step in only when solar power is insufficient to prevent disruptions.
Aggreko's advanced diesel and gas generators are engineered to minimise pollutants, ensuring that emissions remain as low as possible when in use.
An intelligent energy management control system oversees the entire process, guaranteeing uninterrupted energy supply while reducing fuel costs and carbon emissions.
Looking ahead, the adoption of hybrid energy systems in African mining operations will become increasingly attractive to companies as the technology continues to evolve and costs come down.
These hybrid solutions offer a practical solution to the ongoing power reliability challenge and enable mining companies to maintain continuous operations and build the resilience they need to thrive.
The key to success lies in choosing the right energy partner who has deep industry expertise and a proven track record in implementing hybrid solutions in challenging environments, concludes Helberg. -OGN / TradeArabia News Service
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