Clean and energy efficient technology as green economy transition mechanism in South African gold mining: case of Kusasalethu

Abstract

The decline of easily accessible gold reserves at Harmony Gold Limited’s Kusasalethu gold mine meant the firm had to be innovative to access deeper ore bodies. In principle, accessing deeper ore has higher cost implications as more energy, particularly electricity is consumed. Such energy is needed for ventilation, cooling, longer shafts traveling time as well as drilling and blasting harder rock. In South Africa where electricity is largely coal generated, increased energy consumption leads to increased greenhouse gas (GHG) emissions, a move that undermines green economy and low carbon transition. This paper examines environmental and financial impacts of clean and energy efficient technology transition at Kusasalethu gold mine by tracing trends from 2004 to 2012. The findings show significant declines in energy consumption and GHG emissions and operational costs although clean and energy efficient technology transition resulted in increased capital expenditure.