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R/€ = 20.2862 Change: 0.0000
R/$ = 17.3371 Change: -0.0002
Au 3768.66 $/oz Change: 8.73
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First mine energy plant passes prefeasibility phase

29th August 2025 BY: Halima Frost
Senior Writer

After having successfully acquired 100% of the shares of the Wonderfontein coal mine, in Belfast, Mpumalanga, Ndalamo Energy – a subsidiary of midtier coal miner Ndalamo Resources – has started the development of its first energy project. A portion of this energy will partially power the mine’s operations.

The project entails the construction and commissioning of a 66 MW solar PV installation at the mine and is progressing towards the appointment of a technical development partner, which “will take place after a stringent procurement process”, says Ndalamo Resources energy executive head Nikash Rughubir.

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The scope of work for the technical development partner includes all technical aspects, regulatory approval and progressing the project to financial close.

“Ndalamo has reviewed proposals and has shortlisted development partners,” he adds.

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A range of definitive site assessments, technical studies and the design of the solar PV facility will be prioritised while preparation for the financing, contracting and procurement phase will be undertaken.

Ndalamo will also ensure that all permitting and licensing requirements – such as National Energy Regulator of South Africa registration, licensing from State-owned power utility Eskom and environmental authorisation – are implemented.

Rughubir expects that, with the prefeasibility studies concluded, there will be changes to the projected capital and operational expenditure estimates: “We anticipate that the next phase will determine the final capital and expenditure figures as part of the financial close process.”

Project Pipeline

The project is scheduled to break ground in the second quarter of 2027, while commissioning is expected by the third quarter of 2028, after financial close, expected in early 2027.

The project, to be undertaken on 136 ha within the Wonderfontein mine’s landholding, will result in the Phase 1 development of 10 MW to power Ndalamo Resources’ operations, while the remaining 56 MW is earmarked for supply to customers through Ndalamo Energy’s TradingCo subsidiary.

The initial phase includes key infrastructure upgrades such as a 6.6 kV substation to enable net metering, and an existing 22 kV line for power distribution across Ndalamo Resources’ mining sites of North Block Complex and New Clydesdale Colliery, both in Mpumalanga.

“The successful completion of the prefeasibility study and the acquisition of Wonderfontein are testament to our dedication to growth and diversification,” lauds Ndalamo Resources CEO Shammy Luvhengo.

These milestones not only strengthen Ndalamo Resources’ portfolio but also enhance its ability to meaningfully contribute to South Africa’s energy and mining landscape.

“These developments come at a crucial time as we continue to expand our footprint in the mining and energy sectors,” he adds.

Wonderful Wonderfontein

The Wonderfontein mine acquisition represents a significant achievement for Ndalamo Resources, owing to its being the company’s first wholly owned coal mining operation, “cementing the company’s position as a formidable player in the mining and energy sectors”, says Rughubir.

The social aspects of the solar project will be catered for as part of the mandatory process of community engagement for the environmental authorisation process of the project.

“Additionally, as the project is located within the perimeters of one of our mines, we already have good relationships and continuous engagement with nearby communities and stakeholders as part of our licence to operate in the region, and we see this as an opportunity to enhance the relationship and support to our stakeholders.”

He adds that the solar PV project is a cornerstone of Ndalamo Resources’ strategy to lower its carbon footprint, increase energy security and drive sustainable growth.

By directly offsetting energy demand at key sites, the project promises significant cost savings and improved energy reliability, while the scalability of the project supports future revenue generation by enabling the company to sell energy to external offtakers.

“This initiative is also a critical part of our broader environmental, social and governance goals, contributing to climate change mitigation, job creation and community upliftment,” concludes Rughubir. 

EDITED BY: Donna Slater Senior Deputy Editor: Features and Chief Photographer
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