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Vedanta Operations Director, Pieter van Greunen details company’s self generation plans
Earlier this month South African mines and energy minister Gwede Mantashe amended regulations on energy self generation, boosting the threshold to a 100 megawatts. One company that is set to take advantage of this is Vedanta Zinc International. The company's Operations Director, Pieter van Greunen joins CNBC Africa for more.
Thu, 26 Aug 2021 10:51:38 GMT
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AI Generated Summary
- Vedanta aims to double production in the Northern Cape and add value to the local industry.
- The company is reviewing the feasibility of generating 200 megawatts in the region through a mix of grid and renewable sources.
- Cost estimates indicate a significant investment for capacity expansion, with a commitment to contributing surplus energy to the national grid for socio-economic development.
Vedanta Zinc International, a leading Zinc-producing company with operations in the Northern Cape and Namibia, is gearing up for significant growth and expansion in South Africa. The company's Operations Director, Pieter van Greunen, recently shared insights into their plans for self-generation following the recent regulatory changes that have increased the threshold to 100 megawatts. Van Greunen emphasized the company's commitment to doubling its production in the Northern Cape and adding value to the local industry and workforce.
Van Greunen highlighted the importance of reliable and cost-effective power supply for the mining industry's development in South Africa and the Northern Cape region. He expressed gratitude towards the Minister of Resource and Energy, Gwede Mantashe, for supporting self-generation projects that aim to enhance energy security and reduce costs.
The company is currently exploring the potential to generate 200 megawatts of power in the Northern Cape and Namibia through a combination of grid electricity and renewables. Van Greunen revealed that Vedanta is reviewing the feasibility of producing between 10 and 13 megawatts on-site from solar power in the Northern Cape. The company has already obtained L1 status for the project, and negotiations for the EPC contract are underway.
Looking ahead, Vedanta plans to be self-sufficient with 100 megawatts to support its expansion projects in the Northern Cape. However, the company envisions the need for additional power capacity in the future, especially when considering the construction of a new smelter. Van Greunen hinted at the possibility of seeking approval from authorities for exceeding the current 100-megawatt limit.
In terms of costs, Vedanta estimates approximately a thousand bucks per megawatt for development expenses. To reach a capacity above 100 megawatts, the company foresees an investment of around a hundred million. Despite the substantial financial commitment, Vedanta remains committed to contributing surplus energy to the national grid to boost economic development and job creation in South Africa.
Van Greunen's projections reflect Vedanta's strategic approach to energy self-generation and its broader commitment to sustainability and community development. The company's willingness to share excess power with the grid underscores its role as a responsible corporate citizen keen on harnessing renewable energy for the benefit of all stakeholders.
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