Northam Platinum is positioning its Eland mine to become South Africa's first platinum group metals operation running entirely on renewable energy, with the company also planning to phase out external water sources at the site before the end of the decade.

The Johannesburg Stock Exchange-listed PGMs and chrome miner presented the green-energy roadmap on August 28 alongside a stunning set of financial results, including a 293% surge in operating profit and record dividend payouts to shareholders.

"At Eland, we have a truly unique opportunity to create the first PGM mine in South Africa operating solely on renewable energy. In addition, Eland is water positive, and we will phase out external water sources before the end of the decade, truly becoming a green mine," said CEO Paul Dunne during the results presentation.

The company recently commissioned an 80 MW solar farm at its Zondereinde mine, which Dunne described as a major milestone. "Each year, this facility will produce 220,000 MWh of secure, behind-the-meter electrical energy, reducing annual carbon emissions by 240,000 tonnes, and reducing Zondereinde's energy costs by 15%."

Northam is advancing five other renewable projects, including the 140 MW Karreebosch wind farm, where 22 of 25 towers have been erected, and the 255 MW Thakadu utility-scale solar project scheduled for mid-2027 commissioning. A 20 MW solar facility at Eland, expanding to 40 MW, is also under construction.

"Once all the projects were fully operational in financial year 2028, the company would be delivering more than 1,000 GWh of energy, and have reduced carbon intensity by 70% and shaved about R1-billion a year off its current electricity bill," Dunne said.

Northam plans to install 250 MW of battery storage at Zondereinde, which Dunne said would improve energy security and enable peak tariff arbitrage. "It's worth noting that peak tariff energy represents only 14% of energy use, but 44% of energy cost. Hence, the arbitrage opportunity."

The Karreebosch facility, he reported, "will deliver around 460,000 MWh onto the Eskom grid, and we'll elect, on a monthly basis, where to apportion this power between the operations. This will reduce carbon emissions by over half a million tonnes per annum, and group energy costs by a further 10%."

Northam's operating profit for the 2026 financial year soared 293%, with sales revenue climbing 64% to R54-billion at a 140%-higher operating margin. Earnings before interest, taxes, depreciation and amortisation rose 239% to R16.6-billion, while basic earnings per share jumped 824%.

"We are looking for more renewable opportunity. At this stage, we're only 70% abated on carbon, and there is more we can do but for the moment, that's the project work we do have," Dunne added.