banner

A South African industry group has told the country's energy minister that further power constraints would lead to reduced mine output and plant closures.
1123 Views

South Africa industry group warns energy minister of reduced mine output


JOHANNESBURG (Reuters) – A South African industry group has told the country’s energy minister that further power constraints would lead to reduced mine output and plant closures, according to minutes from the meeting seen by Reuters.

The meeting, which took place on Tuesday, was between Energy Minister Tina Joemat-Pettersson and members of the Energy Intensive User Group (EIUG), an industry body that includes major mining companies operating in South Africa such as AngloGold Ashanti and BHP Billiton.

The ministry noted the meeting in a statement on Tuesday but provided few details about it.

South Africa is currently facing its worst power crisis since 2008, when rolling power outages cost the mining industry in the world’s top platinum producer billions of dollars in lost output and brought misery to retailers and households.

South Africa‘s state-run power utility Eskom [ESCJ.UL] last Friday implemented rolling blackouts in some parts of the country, the first such power cuts this year, and has warned that more are certain as demand threatens to outstrip its capacity to keep the lights on.

Minutes from Tuesday’s meeting obtained by Reuters show the minister indicated that she was exploring the idea of getting the private sector to reboot power plants mothballed in the past, such as those owned by local municipalities.

On the subject of Eskom‘s precarious financial situation, she was quoted as saying that the utility was “burning cash faster than it is making it” and that the company needed to rein in costs.

Even with a 20 billion rand ($1.7 billion) cash injection from the government and permission to raise electricity tariffs, Eskom has said it needs more funds to ensure liquidity.

The minister also said the high cost of diesel to run Eskom‘s open cycle gas turbines was unsustainable.

An Eskom spokesman said last week that if the cash-strapped utility was unable to purchase diesel supplies, it would lose 5 percent of its capacity and blackouts would then occur on an almost daily basis until the end of March.

Controlled power cuts are used to prevent a total collapse of the grid.

Source: Reuters Africa


mining

Attend the Sustainability in Mining Seminar at Sustainability Week.

23 June 2015.

Book your seat here.


Follow Alive2Green on Social Media
Twitter Facebook LinkedIn Google +

Recently Published

Screen Shot 2017-02-17 at 11.57.06 AM
»

SA’s polystyrene recycling growth disproves its ‘unrecyclable’ status

Polystyrene recycling in South Africa showed increased growth in ...

Screen Shot 2017-02-17 at 11.44.04 AM
»

Water scarcity: Why government must expand micro-irrigation coverage

The focus of the government has to be on expanding micro-irrigation ...

Screen Shot 2017-02-17 at 10.31.57 AM
»

Young, digital and keen to travel: Youth Travel at ITB Berlin

Why not explore the world instead of lying on the couch? This year, ...

Screen Shot 2017-02-06 at 12.57.08 PM
»

Pakistan turning into a water-scarce country, say experts

ISLAMABAD: Leading experts on water resources are of the view that ...

Screen Shot 2017-02-06 at 11.51.04 AM
»

Construction of Jeffreys Bay Hospital to start this year

WITH a multi-million investment, creating new jobs, construction of ...

Screen Shot 2017-02-06 at 11.19.57 AM
»

Big Oil’s new fashion accessory: “green gas” plants

So, here’s the good news. Big Oil is increasingly looking at ...

Screen Shot 2017-02-06 at 11.11.38 AM
»

South Africa confirms presence of invasive pest that infests maize

South Africa’s department of agriculture said on Friday that ...

Screen Shot 2017-01-30 at 10.53.13 AM
»

Joburg council hopes to reintegrate electricity, waste, water entities – Mashaba

Power, Joburg Water and Pikitup are one step closer to falling under ...

Screen Shot 2017-02-03 at 1.51.50 PM
»

Solar-power system could provide clean drinking water in rural India for the first time

A solar-powered purification system could slake the thirsts of rural ...