The mining sector’s energy needs require reliable, low-carbon power to unlock critical mineral production. With rising ESG demands, governments and the private sector can both help reduce the industry’s carbon emissions. The region’s abundant but underused solar, hydro and wind resources offer a key opportunity to power sustainable mining and meet ESG goals.2.3 Energy strategy CASE STUDY 3 Namibia’s green iron breakthrough47 Namibia launched the Oshivela plant in April 2025 – the first industrial-scale green iron facility in Africa, powered entirely by renewables. Developed by a German-Namibian consortium, it operates off-grid using a 25-megawatt (MW) solar photovoltaic (PV) system, 13.4 MW battery storage48 and SAR’s largest electrolyser to produce green hydrogen, enabling zero-emissions iron production.Impact of Namibia’s renewable energy push Hylron’s Oshivela plant in Namibia is aligned with the EU- Namibia Strategic Partnership on Green Hydrogen and could benefit from its framework as it expands. It has an initial annual capacity of 15,000 tonnes with plans to scale up to 2 million tonnes annually by 2030. Challenge High carbon emissions: The use of fossil fuel sources in mining, such as coal, has led to high global carbon emissions. Energy dependency: The mining sector’s reliance on fossil fuels also results in higher operational costs and environmental damage. Structural issues in the Namibian economy: The country depends on raw materials exports without in-country value addition, high youth unemployment and restrictions faced by carbon-intensive products in global trade. Solution Integration of renewable energy: The off-grid facility runs on a 25 MW solar PV system and 13.4 MW battery storage, enabling fully emissions-free iron production. Green hydrogen: The plant has the largest hydrolyser in SAR, with 12 MW of power, developed to produce green hydrogen for use in the reduction process, as an alternative to coal and natural gas. Scalability of technology: The plant’s modular setup supports rapid expansion, with plans to reach 1 million tonnes of iron output by 2030. Impact Emissions reduction: The plant is projected to cut 27,000 tonnes of carbon dioxide (CO2) emissions in its first phase, with potential to scale to 1.8 million tonnes annually.49 Leadership in decarbonization: Success could position Namibia as a pioneer in green industrialization globally. Economic growth: By adopting this model of industrial development, Namibia could also move up the value chain in critical minerals processing, enhance its industrial base and improve its performance in global trade. Offtake agreement: HyIron has signed a deal with German metals firm Benteler for 200,000 tonnes of hydrogen-based iron annually. Infrastructure accounts for a major share of mining capex, as projects often require on-site power and transport. Shared infrastructure could help reduce costs, enable market access and connect landlocked mineral-rich areas to export hubs, in turn boosting local economies.2.4 Transportation infrastructure Securing Minerals for the Energy Transition: Finance for Southern Africa 20

Securing Minerals for the Energy Transition 2025