South African miners suspend operations
South African mining companies have temporarily halted production due to the country’s electricity problems.
Major mining companies in South Africa have suspended all operations within the country due to interruptions in electricity availability creating concern for miners’ safety.
Eskom, a power company that generates 95% of South Africa’s electricity, has asked its Key Industrial Consumers (KICs) to reduce their consumption to as little as possible.
The company has cited prolonged adverse weather conditions – the country has experienced unusually heavy rainfall – as the reason for the reduction in availability, as this has affected the supply of coal to power stations.
Eskom’s Chief Executive, Jacob Maroga, has predicted that the situation will continue for the next two to four weeks. He said: “In the past, our industrial customers have voluntarily reduced load at Eskom’s request. Following our discussions with them, they have made additional significant contribution to reducing demand. We appreciate their cooperation and we are doing all we can to normalise the supply as soon as possible.”
The lack of assurance of continuous power has meant that miners may not be safe underground if power fails.
Gold Fields, one of the world’s largest unhedged producers of gold, is one of the companies to suspend its South African operations. Ian Cockerill, Chief Executive Officer of Gold Fields, said: “This will have a serious effect on the South African operations and will negatively affect our gold production. The South African Operations produce approximately 7,000 ounces per day. We are looking at ways to continue operations and will work closely with Eskom to try and resolve this problem.”
Another global gold production company, AngloGold Ashanti, has also halted its South African mining and gold recovery, continuing only with emergency underground pumping work.
