Namibia’s mining sector has the potential to significantly cut its energy costs by transitioning to renewable energy and electrifying mobile mining equipment, a new report shows.
According to the Renewable Energy Opportunities for Namibia report by the International Energy Agency (IEA) although most mines are connected to the electricity grid, mobile mining equipment such as haul trucks, excavators and loaders rely on fossil fuels.
“Electrifying mobile mining equipment, such as haul trucks and loaders, not only reduces costs but enhances efficiency and provides environmental and health benefits for miners and local communities,” the report noted.
In 2023, Namibia spent over N$32 billion on imported fossil fuels and electricity, of which N$1.8 billion was attributed to the mining industry.
“The electrification of these tools – either with large batteries or through high-voltage trailing cables – is progressing rapidly around the world, with Namibia’s uranium mine emerging as one of the world’s pioneers,” said IEA.
Despite higher upfront investment needs, the Agency highlights that overall cost savings can be significant over the life of a mine, especially when accounting for the low cost of renewable electricity.
In 2022, the mining industry consumed 7% of Namibia’s total final energy, or four petajoules (PJ), and accounted for 21% of the country’s total electricity use.
Mines rely heavily on fossil fuels for mobile equipment, despite being connected to the national grid for electricity needs.
Although the upfront investment for electrification and renewable energy is high, the IEA emphasises significant cost savings over the life of a mine, especially given Namibia’s abundant solar and wind resources
“Shifting to renewables can provide cheaper and more predictable electricity prices, while also helping decarbonise mining operations,” the report noted.
The mining sector’s reliance on imported energy has made it vulnerable to price volatility. Currently, 70% of Namibia’s electricity is imported, primarily generated by coal or hydropower, which fluctuates depending on the exporting country.
“Mining companies are increasingly adopting renewable energy to mitigate energy security risks and price volatility. However, success depends on expanding and upgrading grid infrastructure to support flexibility and resilience,” said the report.
Namibia’s uranium mining industry is at the forefront of electrification, employing high-voltage trailing cables and large batteries for mobile equipment.
“Uranium mining and processing are among the most energy-intensive activities, consuming nearly 600 gigajoules (GJ) per tonne of uranium oxide produced,” the report outlined.
While mining companies are setting voluntary decarbonisation targets, the Namibian government has yet to define specific goals for renewable energy adoption in the sector.
“Access to sustainable finance is increasingly tied to the ambition of these targets,” the report adds.
