22 Feb Mining companies in sub-Saharan Africa advised to invest in renewables: Fitch report
A new report by market research firm Fitch Solutions has advised mining companies in sub-Saharan Africa (SSA) to invest in renewable energy to power their operations.
The research pointed to the prevalence of off-grid remote mineral deposits and the often-unreliable nature of traditional grid power across the continent as key reasons to invest in renewables.
“In SSA, the remote location of many important mineral deposits in combination with the underdeveloped state of power and transport infrastructure means that there are a large number of mines that are not connected to national or regional electrical grids,” said the report.
“As a result, many of these mining operations are highly dependent on diesel-generated power, which is expensive to transport and subject to significant volatility in terms of pricing.”
A switch to renewable energy would reduce companies’ dependence on diesel while taking advantage of favourable climate conditions on the African continent.
“Africa receives more hours of sunshine during the course of a year than any other continent on earth, meaning solar will remain the renewable power of choice for miners looking to reduce their exposure to fossil fuels,” said Fitch.