Press release: for immediate release

Palabora Mining Company appoints game changing,

The project promises cost-efficient, secure, green energy and significant social
upliftment for Ba-Phalaborwa Communities in Limpopo Province.
A clean, cost-efficient, stable electricity supply is critical to any mining sector
leader. In that light, Palabora Mining Company (PMC) has partnered with Mzansi
Energy Consortium (Mzansi Energy) through a formalized contract to develop a
132MWp solar photovoltaic (PV) plant and battery energy storage system (BESS)
capable of storing 310MWh of electricity. The power plant, branded “Marula Green
Power”, is expected be rolled out over two stages, that is stage 1, Construction and
stage 2 Operation and Maintenance. The project is expected to reach financial close
in the second quarter of 2023 and commence operations in the second quarter of
2024. The current timelines are preliminary at this stage and may change based on
the outcome of the Detailed Feasibility Study (DFS). Once deployed, the project will
be one of South Africa’s largest private Independent Power Producers (IPPs) and is
intended to provide the mine with both securities of supply, affordable energy and
this will result in significant cost savings.
Wessel Wessels, CEO of Journey2Green (a founding partner in Mzansi Energy), says
a long-term Power Purchase Agreement (PPA) will be finalized between the parties
at the end of a Detailed Feasibility Study in the next six to eight months,
commencing in October 2022 and is expected to end in May 2023. “Mzansi Energy
will design, finance, install, operate and maintain the plant for 12 years”.
“The plant will be based within the municipal jurisdiction of Ba-Phalaborwa,
Limpopo, just outside Namakgale township, it will be approximately 20km from the
mine. The location is strategically chosen to allow for direct supply to the mine
without connection to the Eskom grid,” Wessels explains.
Contribution towards sustainable development and green energy supply
Tumi Mogoera, Associate Director of Summit Partners (another founding partner in
Mzansi Energy), says the project is one step towards helping South Africa address
its electricity challenges. “Additionally, the Marula Green Power plant will contribute
to our nation’s Just Energy Transition (JET) net zero carbon emissions strategy,”
Mogoera points out.
Mzansi Energy’s local community upliftment
Mzansi Energy has partnered with the local traditional authority as per the study
performed for identification of the ideal location subject to final Environmental
Impact Assessment (EIA). The authority will host the solar power plant on its land
and enter into a long-term lease - the long-term lease is conditional on specific
socio-economic benefits for all local Ba-Phalaborwa communities in areas such as
business opportunities for SMME’s, skills transfer / development, job creation etc.

During the project roll out phases, many direct and indirect employment
opportunities will be created through the Marula Green Power project and the local
suppliers in Ba-Phalaborwa region will also be exposed to available business
opportunities. Based initial estimates, the project is expected to create about 500 to
750 fixed-term employment opportunities during construction and approximately 35
permanent jobs during the operation and maintenance over 12 years period.
Mzansi Energy has developed a community development roadmap to stimulate the
local economy through skills development and employment of locals. This applies
during the development, construction, and operation of the Solar PV plant in the Ba-
Phalaborwa area. Built on these solid community relationships, Mzansi Energy’s
Corporate Social Responsibility roadmap includes explicitly:
● Job creation, not just during the construction phase but also during the 12-
year term. Mzansi Energy commits to assisting qualifying entrepreneurs in
establishing themselves as fully-fledged businesses after their involvement in
the project construction phase with a long-term maintenance contract to
support the site.
● Allocation of funds for skills development, youth development and community
development initiatives.
● Agrivoltaics farming is planned at the plant to improve food security and
reduce poverty among local people. Agrivoltaics uses, in combination, a
portion of the land for solar photovoltaic power generation and agriculture.
The detailed plan shall be consulted with the stakeholders to ensure that the
process unfolds in a fair manner for the benefit of the local communities.
Phased rollout approach
Marula Green Power project’s construction will consist of two phases. The first
phase, to come online from second quarter of 2024, will ultimately commission
310MWh of storage capacity in stages. The commissioning will reduce load-
reduction-driven power cuts for PMC and support applications like Energy Arbitrage
and Demand Savings. The second phase in parallel is the construction of the
132MWp Solar Plant and transmission lines to PMC, which is to be commissioned
from the fourth quarter of 2024. Marula Green Power plant will be funded through a
limited recourse project finance structure with zero cost to the mine 1 and is
expected to reach a financial close in the second quarter of 2023.

1
Mzansi Energy intends to raise a combination of Senior Debt, Mezzanine and Alternative Finance Solutions (i.e.,
Blended Finance, Carbon Finance) etc. from local banks, foreign banks, local Development Financial Institutions
(DFI), Export Credit Agencies (ECA) etc.
About Mzansi Energy Consortium
Mzansi Energy Consortium (“Mzansi Energy”) provides cost-effective renewable
energy solutions to business customers and end users. Our multi-disciplinary team
has substantial expertise in renewable energy project development, centrally
coordinated project management, commercialization and marketing, capital raising,
EPC contracting, project commissioning and asset management. The team has more
than 100 years of collective financial and strategic expertise, critical infrastructure
development management knowledge and at least 20 years of energy experience.
Mzansi Energy is ready to assist customers that seek sustainable renewable power
generation or a fully integrated renewable energy solution.
Mzansi Energy is an Independent Power Producer (IPP) joint venture between
Journey2Green and Summit Partners Energy Consortium (Summit Partners, MSV
Developers and Local Ba-Phalaborwa partners).
Mzansi Energy would like to express its gratitude and appreciation to PMC for giving
us this opportunity to be part of its sustainability strategy and for the contribution to
the development of local communities. This demonstrates PMC’s commitment to the
pursuit of world energy transition, promotion, and welcoming various sources of
renewable energy to ensure the support of the green economy in Africa.