Clean technology transition potential in South Africa's gold mining sector : case of Harmony's Kusasalethu Mine

Abstract

Countries and governments around the world have accepted the scientific argument on the prevalence and the possible effect of global warming and climate change on the environment, world economy and ultimately human life (Nhamo, 2011). Amongst all industrial corporations, the mining industry is the biggest environmental polluter due to its extractive nature and energy intensive operations. However because of its economic importance, it cannot be abandoned, instead it needs to find a win-win situation, where it continues to succeed but minimizes environmental damage. This thesis aims to examine the possible impact of clean technology on the sustainability of South African gold mining sector. Specifically, the study aims to determine the drivers behind the move towards clean technologies and methods, identify challenges and opportunities associated with this transition at Harmony Gold’s Kusasalethu mine. This was achieved through using Kusasalethu as a case study to which investigations of the effectiveness of clean technology and methods were carried out. The case study was multidimensional; exploring the effect of clean technology on energy consumption, greenhouse gas emission (GHG), water consumption, cyanide management and Kusasalethu’s financial performance. While the case study was largely qualitative it involved quantitative data analysis that had to be triangulated with other data sources and data gathering instruments to achieve legitimacy. This meant that the study had to adopt the mixed research methods. The instruments used included; key informant interviews, and document analysis, structured questionnaire and a set of open ended questions that served as interview guide. The qualitative data were analyzed by means of coding, descriptions, typologies, taxonomies and visual representations, whilst quantitative data were processed through Microsoft Excel to generate various forms of descriptive statistics. The findings indicate that resource consumption (energy, water, cyanide) depends on the mine design and gold output rate. Clean technology implementation at Kusasalethu helped the mine reduce energy consumption and GHG emissions. However scope 2 (indirect GHG emissions associated with energy consumption) is also determined by coal production technologies and methods used by coal mines. Although data on Kusasalethu water and cyanide management and related technologies was not available, the aggregate data for all Harmony Gold mines indicated higher annual water and cyanide consumption during 2010 and 2012. In terms of Kusasalethu’s financial performance and clean technology adaptation, acquisition of clean technologies increased capital expenditure temporarily. However, the positive effects of the clean technology transition and implementation minimized operational cost and increased operational profit greatly. Although adopting clean technologies calls for increased capital expenditure, this study reveals that this expenditure pays off in lower operation costs for the mine and the environment benefits through lower GHG emission. However, clean technologies are yet to impact significantly in lowering water and cyanide consumption levels as they do with energy consumption. The study concluded that clean technology and methods played a positive role on Kusasalethu’s environmental impact and financial performance by reducing energy consumption and GHG emissions. Though, more need to be done in terms of water and cyanide management.