Pan African Resources Share News (PAF)

(Sharecast News) - Pan African Resources updated on its renewable energy developments on Monday, reporting substantial progress in its efforts towards sustainable energy solutions.

The AIM-traded firm said it had made strides in the construction of renewable energy facilities, and the establishment of power purchase agreements (PPAs) with reputable energy providers.

It said it had struck an agreement on engineering, procurement, and construction (EPC) with JUWI Renewable Energies for the development of an 8.75MW solar photovoltaic (PV) facility, known as the Fairview solar facility, at Barberton Mines' Fairview operation.

The project was expected to yield significant benefits, including cost savings of ZAR 26m (£1.09m) in the first year alone, with an average of ZAR 40m per year throughout the plant's lifespan.

Additionally, the Fairview solar facility would contribute to a reduction in carbon dioxide emissions by around 22,000 tons per year.

Pan African said it had also entered into a power purchase agreement (PPA) with Sturdee Energy, securing a 40MW wheeled renewable energy solution.

The agreement would allow Pan African to use the generation capacity for any of its operations, enabling the company to further its commitment to sustainable energy practices.

The firm added that its renewable energy strategy encompassed several other initiatives, with a feasibility study underway to expand the Evander Mines 10MW solar PV facility by at least an additional 12MW, ensuring sufficient capacity for the mine's long-life projects.

Moreover, a feasibility study had commenced for a solar PV facility at the Mogale Tailings Retreatment Plant.

The successful implementation of the projects, along with preliminary feasibility studies, was projected to enable Pan African to meet approximately 28% of its power requirements through renewable energy.

It said the shift was estimated to result in an annual reduction of 137,000 tons of carbon dioxide emissions, and cost savings of up to ZAR 154m for the company, considering current Eskom tariffs and projected future price increases.

"Our solar photovoltaic renewable energy initiatives are key components in progressing Pan African's renewable energy strategy and in achieving our sustainability targets," said chief executive officer Cobus Loots.

"In addition to measurably reducing the group's carbon emissions, these projects will assist in stabilising the electricity supply to our operations, while also realising commensurate cost savings that will assist in reducing our overall all-in sustaining cost per ounce of production in the longer term."

At 1231 BST, shares in Pan African Resources were up 3.55% at 18.68p.

Reporting by Josh White for Sharecast.com.