Large SA gold and platinum mines get more power- production losses will be reduced

Production at large gold and platinum mines will benefit "significantly" from the South African government's commitment to increase power at key mines to 95 per cent. The increase means less damage to production at mines using 50-70 per cent of available power for maintenance.

Frans Baker, spokesperson for the SA Chamber of Mines, told Mineweb today it was indeed the major gold and platinum mines and "some others" that would see increased power supply from an additional 260MW allocated to mines in the country.

He said the approved 5 per cent increase in power supply would have a significant impact on production at these mines as many gold and platinum mines used a large percentage of power for maintenance activities, such as ventilation, cooling and pumping.

"The fact that some mines use between 50-70 per cent of power for maintenance activities implies that a 10% percent cut has a very damaging effect on production.

"If one only needs to make a 5 per cent overall cut in power supply, it means that supply to production is cut by 10 per cent instead of 20 per cent," he said.

Baker said it was difficult to quantify the expected increase in gold and platinum ounces at this stage, but tens of thousands of jobs would be saved as a result of the power increase. It would also boost commodity exports.

He said meetings between industry, government and Eskom will be set up next week to discuss how increased supply will be phased in over the period of two weeks.

The department of minerals and energy confirmed in a statement today that Eskom will allow an increase up to 260MW in electricity supply to the mines over the next two weeks.

Eskom announced on Wednesday that it may delay approval for new construction projects to its grid for up to six months. Projects that were cleared already would not be affected.

Source: Mineweb