Author:
Mr. Jean Marais
Founder & Group Executive Chairman, Sanodea Group
Rooted in Africa. Connected to the World.
Presence: Africa, Europe, Middle East, Asia, North America
Abstract
Power reliability defines the competitiveness and sustainability of African mining. Energy disruptions, diesel dependence, and grid instability continue to erode profitability and ESG credibility across the continent.
Sanodea Group, through its Advisory and Innovations divisions, are introducing an integrated model to help mines achieve energy predictability through hybrid power systems — combining solar, battery, and thermal sources under digital control.
While newly established, Sanodea draws on more than 30 years of operational leadership experience and is positioned to provide solutions through partnerships with technology developers, EPC firms, investors, and governments.
This article outlines the hybrid energy opportunity, key technical and financial drivers, and the framework through which Sanodea can support African mines in building reliable, low-carbon power foundations.
“Energy reliability is not an accessory — it is the backbone of productivity, safety, and sustainability.”
1. Introduction
Energy accounts for 15–40% of total operating costs in many African mines (KPMG, 2024). Diesel price volatility, delivery logistics, and unplanned outages regularly disrupt operations and investor confidence.
At a production rate of 1,000 oz/day, an hour of lost power at today’s gold price (~USD 3,860/oz) equates to USD 3.86 million in lost revenue — excluding secondary effects such as safety risks, equipment stress, and delayed shipments.
Challenges facing African mining power systems:
-
Over-dependence on imported diesel and unstable grids.
-
Rising carbon taxation and ESG financing constraints.
-
Limited access to concessional finance for renewables.
-
Low on-site technical capacity for hybrid energy maintenance.
The future of mining lies in hybrid reliability — blending renewable and conventional energy, governed by predictive digital systems and supported by strategic partnerships.
2. The Energy Landscape in African Mining
2.1 Operational Volatility
-
Many off-grid mines experience 5–15 hours of unplanned power loss per month (Deloitte, 2023).
-
Diesel logistics can account for up to 50% of variable OPEX in remote operations.
-
Generator maintenance costs rise 20–30% under fluctuating loads.
2.2 ESG and Financial Pressure
-
Investors and DFIs increasingly require verified emission-reduction pathways.
-
Mines with lower carbon intensity report 10–25 bps lower borrowing spreads (IFC, 2024).
-
National energy policies are linking licence renewals to renewable integration.
2.3 Opportunity for Hybrid Integration
Hybrid systems — solar + battery + thermal — reduce dependency, stabilise production, and align with ESG and cost goals simultaneously.
3. Sanodea Innovations | Hybrid Energy Reliability Framework
Sanodea Group can provide hybrid-energy solutions through partnerships with global and regional technology providers, energy developers, and financial institutions.
3.1 Integrated System Design
Modular architecture combining:
-
Solar PV and battery storage for primary load support.
-
Efficient thermal backup (LNG, diesel, or HFO) for reliability.
-
AI-based controllers for predictive load balancing.
3.2 Digital & Predictive Monitoring
Sensor networks and data analytics identify performance degradation before failures occur, optimising maintenance and uptime.
3.3 Carbon Tracking & ESG Integration
Sanodea’s Carbon Twin concept ensures transparent emission monitoring aligned with international reporting frameworks.
3.4 Local Capacity Development
Through its Legacy division, Sanodea can assist partners to establish technician training, local maintenance hubs, and knowledge-transfer programmes.
3.5 Governance & Financing
Working with financiers and policy bodies, Sanodea can help mines access sustainability-linked loans or concessional finance aligned with measurable energy reliability KPIs.
4. Illustrative Applications
4.1 West African Gold Mine (Conceptual Design)
Challenge: High diesel dependency and recurring outages.
Solution: A 12 MW solar array with 5 MWh battery storage and smart thermal backup.
Projected Results:
- 35–40% reduction in diesel use.
- ~20,000 t CO₂ reduction annually.
- Payback in under three years.
Sanodea can provide such integrated solutions through partnerships with technology providers and financial partners.
4.2 Southern African Copper Operation (Concept Study)
Challenge: Grid unreliability and carbon penalty exposure.
Proposed Solution: Renewable-anchored hybrid microgrid with predictive load management.
Potential Outcomes:
- 98% energy uptime.
- ~25% OPEX reduction.
- Eligibility for ESG-linked credit facilities.
4.3 East African Industrial Corridor (Cluster Model)
Concept: Shared hybrid-energy park serving multiple mines and processing facilities.
Potential Benefits:
- 20–25% reduction in energy cost.
- Over 100,000 t annual CO₂ savings.
- Regional employment and infrastructure multipliers.
5. Strategic Value for Mining
| Benefit | Measurable Range (Modelled) |
|---|---|
| Diesel reduction | 30–40% |
| Uptime improvement | 70–80% |
| Maintenance savings | 20–25% |
| Carbon emission cut | 25–35% |
| Cost of capital impact | 10–20 bps |
Operational Resilience: Stable power enhances production efficiency and safety.
ESG & Finance Alignment: Verified carbon data improves access to sustainability funding.
Social Impact: Hybrid systems enable power-sharing models for nearby communities.
6. Sanodea Group | How We Enable Partnership-Based Solutions
| Division | Role |
|---|---|
| Advisory | Develop board-level energy and ESG strategies. |
| Innovations | Integrate technology, analytics, and monitoring systems. |
| Resources | Provide technical oversight and quality assurance. |
| Commerce | Facilitate partnerships with developers, OEMs, DFIs, and regulators. |
| Life | Align hybrid energy with ESG and community impact. |
| Legacy | Train local technicians and strengthen maintenance capacity. |
Through this integrated structure, Sanodea can provide hybrid-energy solutions through partnerships that unite governance, technology, and human capacity.
7. Governance & Risk Considerations
-
Data Integrity: Energy metrics must be transparent and auditable.
-
Maintenance Culture: Predictive maintenance reduces downtime and cost.
-
Policy Coherence: Fiscal incentives should align with carbon and reliability targets.
-
Community Engagement: Shared energy access reinforces social licence and long-term stability.
8. In Conclusion
Mining’s next frontier in Africa will be defined by power reliability.
Through collaborative solutions, Sanodea Group is ready to help mines achieve predictability, reduce carbon exposure, and build investor and community confidence.
By providing hybrid-energy solutions through partnerships, Sanodea bridges the gap between engineering, finance, and sustainability — powering a more resilient mining future for Africa.
explore. Engage. EVOLVE.
References
-
African Development Bank. Hybrid Energy Investments in African Infrastructure. 2024.
-
Deloitte. Tracking the Energy Transition in Mining. 2023.
-
International Finance Corporation (IFC). ESG-Linked Financing for Extractive Industries. 2024.
-
KPMG. Energy Efficiency in Global Mining Operations. 2023.
-
McKinsey. Decarbonising Mining Through Hybrid Systems. 2024.
-
Sanodea Group | Innovations. Hybrid Energy Reliability Framework (Concept Paper). 2025.
-
World Bank. Powering Africa’s Industrial Transformation. 2023.
