Lephalale solar plant powers Exxaro's greener mining

Exxaro Resources has reached a major milestone in its energy transition strategy with the commercial operation of the 68 MWac Lephalale Solar Project (LSP), its first utility-scale self-generation renewable energy facility

Developed through its wholly owned renewable energy business, Cennergi, the project reflects the growing shift among mining companies towards cleaner, more secure power sources as rising electricity costs, grid constraints and decarbonisation targets reshape the sector.

Located adjacent to Exxaro's Grootegeluk Mine in Limpopo, the behind-the-meter solar photovoltaic (PV) plant comprises 129,024 solar modules installed across 185 hectares. Unlike grid-scale solar farms that primarily supply electricity to national utilities, behind-the-meter facilities generate power directly for industrial operations, reducing dependence on the public grid while improving operational reliability. The plant is expected to generate approximately 176 GWh of renewable electricity annually, supplying daytime power to the mine under a 25-year power purchase agreement.

The project achieved Commercial Operations Date (COD) on 20 April 2026, following financial close in June 2023, construction beginning in August 2023, first power delivery in December 2025 and full generation capacity reached later that month. With an investment of R1.7bn (approx. US$104mn), the project demonstrates Exxaro's ability to develop, finance, construct and operate large-scale renewable energy assets while strengthening energy resilience for its mining operations.

Mining companies across Southern Africa are increasingly investing in captive renewable energy as they seek to reduce exposure to power shortages, volatile electricity tariffs and carbon-related costs. South Africa's ongoing electricity supply challenges, combined with corporate net-zero commitments and supportive regulatory reforms for private generation, have accelerated renewable energy deployment across the mining sector. Solar PV has become one of the fastest-growing technologies due to its relatively short construction period, predictable operating costs and ability to offset daytime energy demand.

The Lephalale Solar Project is designed to reduce Exxaro's Scope 2 greenhouse gas emissions by approximately 17%, while lowering electricity costs for Grootegeluk Mine by more than R100m (approx. US$6.1mn) annually. The facility has also been licensed for future integration with a Battery Energy Storage System (BESS), allowing excess solar generation to be stored and dispatched when required. This future capability will improve energy flexibility and help maintain operations beyond daylight hours as storage technologies become increasingly economical.

Speaking at the official opening, Exxaro CEO Ben Magara said the project marks an important step in delivering the company's Sustainable Growth and Impact strategy.

"The official opening of the Lephalale Solar Project is far more than the completion of a renewable energy facility; it marks another significant milestone in the delivery of our sustainable growth and impact strategy," he said.

"The project demonstrates our ability to successfully develop, finance, construct and operate large-scale renewable energy infrastructure through our growing renewable energy business, Cennergi."

Beyond reducing emissions, the project is expected to strengthen Exxaro's long-term operational resilience by providing greater energy security, reducing exposure to carbon taxes and supporting more predictable electricity costs.

The project has also delivered measurable socio-economic benefits during construction. It created 808 jobs, of which 557 positions (69%) were filled by members of local host communities, including three people living with disabilities. Local procurement accounted for 41.9% of project spending, benefiting 13 local subcontractors and supporting regional economic development.

To support a just energy transition, Exxaro invested R1.12m (approx. US$68,400) in community bursaries and workforce development programmes, providing training in photovoltaic installation, firefighting, first aid, incident investigation and other construction-related skills that will remain valuable beyond the project itself.

The successful delivery of the Lephalale Solar Project strengthens Cennergi's renewable energy portfolio and provides a scalable model for future industrial renewable energy developments. As mining companies continue balancing productivity with sustainability, self-generation projects such as Lephalale are expected to play an increasingly important role in reducing emissions while improving operational efficiency and long-term competitiveness.