Green Economy Journal Issue 62

NEWS & SNIPPETS
THE TRIPLE THREAT TO AFRICAN MINING INVESTMENTS
Water availability is a key investment risk to mining in many African
countries. According to Peter Shepherd, partner and principal
hydrologist at SRK Consulting, water allocation demands early
attention and a commitment to meeting stringent compliance
and best practice requirements. Shepherd highlighted that
national regulations are often onerous, and any project’s
motivation for a water use licence needs to be both detailed
and scientifically sustainable.
“Many parts of Africa are dry, and competition for water grows
steadily with development and human migration, as well as climate
change,” he said. “In southern Africa, for instance, countries like
South Africa, Namibia and Botswana are increasingly careful about
how water supply is allocated.”
Feasibility too late
Any new mine development therefore needs to establish at a very
early stage that there are in fact water resources available – and to
investigate the terms for access to such resources. This is no longer
an issue that can wait until the pre-feasibility or feasibility stages of
a project, he emphasised.
Desalination
A government decision in Namibia has meant that new mines will
use desalinated water, for example, which is often piped many
kilometres to the mine site where it is used. Steps like these are
important for managing national water resources but do have a
cost impact on mine development projects. These costs must be
budgeted for well in advance.
“Even where there may be groundwater in the vicinity of a project
in a low-rainfall region – such as 50 to 100 metres under a riverbed
– the developers may be instructed by water authorities to source
water from other sources further away,” said Shepherd.
Settling times
The actual water demand for each project also needs to be carefully
analysed, with due regard to the different types of mines. Processing
of certain minerals is more water-intensive than others, but there
may be high silt or clay levels that raise water ratios and settling times.
“Recycling of water is always important, and this process usually
includes the settling out of suspended solids before water can
be re-used,” he said. “Longer settling times need to be taken into
account in designing the necessary infrastructure.”
He notes that many mines struggle with the silting up of water
storage facilities over time; the lining of pollution control dams with
geo-membranes in recent decades makes it risky to dig out silt using
mechanical equipment. This has resulted in greater efforts to restrict
the inflow of silt at source, through features such as silt traps – from
which the sediment can be more easily removed.
Resilience
Rainfall patterns are changing; even where the annual rainfall
remains similar, there are more exaggerated peaks and troughs –
heavy downpours followed by long periods of little rain, for instance.
Mines have always needed to manage water levels through and
between rainy seasons, but it is becoming more challenging. Return
water dams and settlement ponds need to retain as much water as
possible for the dry periods, while still having capacity to absorb
extra water during the rainy season. Variations to historical rainfall
patterns means that extra capacity is needing to be designed into
this infrastructure.
African mines face water scarcity, changing rainfall patterns and strict
regulations, making water management vital for sustainable investment.
Water quality
“Mining with less water also requires better containment strategies
for water of poor quality,” he said. “Recycling and re-use inevitably
concentrates the level of salts and metals, and mines then need
to isolate this water so that it can be either chemically treated or
removed from site altogether as a hazardous liquid.”
Shepherd emphasised that a mine’s water management strategy
is increasingly part of its social licence to mine, as any use of
this scarce resource must be seen to be equitable. Engagement
with local authorities and communities is crucial in this respect,
allowing new water infrastructure to be developed collaboratively.
Especially where water is being transported long distances to the
mine, additional distribution networks to local communities can be
planned and implemented.
SA’S R1.5-TRILLION TRANSITION PLAN
DFFE Minister launched South Africa’s Just Energy Transition Investment Plan (JET IP) for the period 2023 to
2027 at COP28 late last year. The plan charts the path South Africa will follow to achieve low-carbon but resilient
economic growth, which demands a transition from fossil fuels, such as coal, largely mined in Mpumalanga, to
fuel Eskom’s power stations.
The JET IP is premised on South Africa’s National Development Plan 2030. It focuses on tackling the country’s systemic challenges of
poverty, inequality and unemployment. It also sees an opportunity for the country to drive green industrial development, innovation
and economic diversification. The governments of France, Germany, the UK, the US and the EU collectively known as the International
Partners Group (IPG), have contributed R128-billion (US$8.5-billion) to the overall R1.5-trillion presented in this JET IP. South Africa has
committed to reducing its emissions to within a range of 420-350 megatons of carbon dioxide equivalent (MtCO2-eq) by 2030. According
to the JET IP, the priority sectors identified for investment include electricity, new EVs and green hydrogen.
In the next five years, R711.4-billion will be needed in the electricity sector, R128.1-billion for EVs, green hydrogen (R319-billion), skills
development (R2.7-billion) and municipal capacity (R319.1-billion).
The report warns that South Africa faces an economic risk because of the degree of carbon emission embedded in its commodities
and products.
UNTAPPED GREEN INVESTMENT OPPORTUNITIES IN AFRICA
NEWS & SNIPPETS
KPMG recently released a report detailing nearly $250-billion untapped green investment opportunities in areas such as solar,
wind and hydrogen. As it stands, Africa will need $277-billion annually between 2020 and 2030 to reach its Paris Agreement
targets and implement its Nationally Determined Contributions, to contribute to limiting global warming to 1.5°C, according to
the Climate Policy Initiative. It currently only receives $29.5-billion in annual climate finance, revealing the significant inflows of
both public and private finances required from domestic and international sources.
The report Climate Investing in Africa reveals that, as Africa fast approaches an anticipated
period of economic prosperity, and as a home to mineral and resource rich land, there is
an obvious yet untapped investment opportunity for private sector financiers.
Despite its abundant renewable energy resources and vast non-arable land, Africa
currently receives only 3% of global renewable energy investment, a stark contrast
to the continent hosting 20% of the world’s population. The whitepaper details
why private sector investment will therefore be vital to close the electricity gap in
Africa and help decarbonise industries and economies, to support the region in a
just transition. Other key findings include:
• Unlocking Africa’s wind potential. If Africa were to exploit all of its wind
resources for renewable energy generation, it could easily bridge the current
energy provision gap on the continent. There is ample opportunity for greater
investment and impactful infrastructure, with the International Finance Corporation
estimating that Africa’s wind potential is so substantial that it could meet electricity
demand 250 times over.
• Underinvestment in solar. Underinvestment has resulted in inadequate infrastructure and high costs in the solar sector. Africa’s
current solar potential is estimated to be over 1 000 times the current solar power electricity generation capacity, yet it has only
been systematically deployed in a handful of countries.
• The power of green hydrogen. Should existing commitments to reduce emissions be met by governments globally, it is
projected that demand for green hydrogen projects will increase dramatically. Africa’s possession of copious renewable energy
resources and vast arable land positions the continent uniquely well to produce green hydrogen and catalyse the broader process
of industrialisation on the continent.
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