Published: 3 February 2026
Mining is energy-intensive by design
Mining is one of South Africa’s most energy-intensive sectors, and one of its most economically important. The sector accounts for around 7–8% of Gross Domestic Product (GDP), supports over 450,000 direct jobs and underpins export revenues across platinum group metals, gold, manganese, chrome and iron ore, according to South Africa’s Mining Sector Performance report 2024.
What makes mining globally competitive (deep-level extraction, mineral processing, smelting and refining) is also what makes it energy-hungry. Electricity can represent 15–40% of operating costs, depending on commodity and process intensity. For some mines, energy price volatility is now a bigger strategic risk than geology.
Rising energy costs and competitiveness risk
From 2007 to 2024, South African electricity tariffs increased by 937%, whilst inflation over this period was 155%. Thus, electricity tariffs increased six times faster than inflation in real money terms in 16 years, while global mining competitors increasingly secure long-term renewable power at predictable prices. At the same time, export markets are tightening carbon rules. The European Union’s Carbon Border Adjustment Mechanism (CBAM) will directly affect emissions-intensive value chains, including mining and metals. Energy is not merely an operational input, it is a determinant of cost competitiveness, investor confidence and market access.
Why renewable energy fits mining operations
Renewable energy has reached a tipping point for mining for three reasons:
1. Cost certainty
Utility-scale wind and solar are now among the lowest-cost sources of new electricity globally. Long-term PPAs reduce exposure to Eskom tariff escalation.
2. Scale and reliability
Aggregated portfolios across wind, solar and energy storage mitigate intermittency and single-asset risk.
3. Decarbonisation without distraction
Mines can reduce Scope 2 emissions without owning or operating generation assets.
Why mining leaders choose NOA
NOA’s solutions are purpose-built for large energy users that require scale, flexibility and certainty. Mining clients choose NOA because we offer:
- Utility-scale renewable energy, designed for energy-intensive operations
- Aggregated supply from multiple wind, solar and energy storage assets for reliability
- Flexible energy supply agreements from 1 to 25+ years
- Competitive tariffs and long-term cost visibility
- Clean energy that supports decarbonisation
- A long-term partner backed by strong capital and deep market expertise
“Mining needs energy partners who understand scale, complexity and long-term risk. At NOA, our role is to absorb market and operational complexity so our customers can focus on running world-class mining operations.” Karel Cornelissen, CEO, NOA Group
Energy as a strategic advantage
Mining remains central to South Africa’s economic future. As energy markets liberalise and renewable capacity accelerates, mining companies that secure long-term, flexible clean energy will be best positioned to compete globally. NOA is proud to partner with leading mining businesses to deliver future-fit energy solutions built for performance, certainty and scale. “With an estimated 16GW of renewable energy initiatives underway in South Africa’s mining sector, the focus is increasingly on execution rather than intent,” concludes Karel.
About the author: Christine Krone is Head of Marketing at NOA. She has over 20 years’ experience in complex and technical marketing, including four years in the renewable energy sector, working across financial services, energy, higher education and consulting.
