Northam raises $124 million credit line amid renewable energy push

Northam Platinum, the Johannesburg-listed platinum group metals producer, has increased its revolving credit facility (RCF) by R2 billion ($124.13 million), taking the total to R13.3 billion ($825.49 million) from R11.3 billion ($701.35 million). 

The credit line facility, which matures in August 2027, forms part of Northam’s total available banking facilities of R14.3 billion ($887.55 million), including an existing R1 billion ($62.07 million) general banking line.

Northam credit increase supports energy projects
The South African platinum producer said the expanded credit line will accelerate the construction of its own-build renewable energy projects, reinforcing energy security while reducing long-term costs and carbon emissions. 

Northam is pursuing a diversified energy strategy, combining photovoltaic solar plants with utility-scale battery storage at its mine sites. The projects complement power purchase agreements already signed with independent producers, some of which are operational and supplying renewable energy.

Renewable strategy reduces costs, emissions
The facility provides Northam with the flexibility and additional capacity to accelerate our efforts to enhance the security of our energy supply through renewable sources, and to significantly decrease our contribution towards greenhouse gas emissions,” said Chief Financial Officer Alet Coetzee. She added that the expansion will not compromise the company’s other capital programmes or shareholder returns.

Solar and battery integration underway
Northam’s renewable energy programme is designed to supply more than 70 percent of the company’s total energy requirements from renewable sources before the end of the decade. The initiative is expected to improve the energy availability factor at competitive cost levels, while delivering a meaningful reduction in the company’s environmental footprint.

The move comes as South African miners face rising energy costs and increasing pressure to decarbonize. Northam’s proactive approach positions it among the industry leaders in integrating renewable energy into mining operations, combining financial discipline with sustainability goals.