Government’s decision to marginally increase power supply to the mining industry

The Chamber of Mines and its members welcome government’s decision to marginally increase the supply of electricity to the mining industry. In recent weeks (following industry agreement in late January to a 10 per cent cut in consumption, as a short-term emergency stabilisation measure, requested by ministers Alec Erwin and Buyelwa Sonjica) the Chamber has urgently been interacting with government and Eskom in an effort to persuade them to normalise mining sector power consumption levels.

The 260 megawatt increase announced today by the Department of Public Enterprises represents about five per cent of total mining industry electricity consumption. The Chamber notes that the increase will be neither immediate nor comprehensive but will be a phased introduction.

Most important, once implemented, the increase will deliver potential to save jobs and to minimise workplace threats to employee safety. With the mining industry being responsible for about 50 per cent of South Africa’s foreign exchange earnings derived from merchandise exports, there is the additional prospect of increased mineral sales and concomitant alleviation of pressure on the current account of the balance of payments.

Over the past 18 months, on its own initiative, the mining sector has implemented various energy saving initiatives resulting in a reduction in its consumption of electricity by more than four per cent. These measures came long before the introduction of power cuts and the mines are committed to becoming even more efficient electricity users.

The Chamber calls on all users of electricity, within and beyond the mining industry, to contribute to the national effort to conserve electricity.

The mining sector is confident of its capacity to create many more jobs provided it receives the electricity required to ensure optimal production. In this context, it is hoped that today’s 260 megawatt increase announcement will be the first step by Eskom in getting the entire mining sector back, as quickly as possible, to a full and uninterrupted supply of power.

Media Enquiries

Jabu Maphalala

072 883 4642