January 26, 2008, 15:15
A power shortage halted production in South Africa's lucrative mining sector for a second day, and mining company officials say they still did not know when they could resume operations.
Government describes the power cuts as national emergency on Friday and stopped production in the world's biggest platinum and No. 2 gold producer, helping send prices in those metals to record highs and denting South Africa's rand.
"Nothing has changed," says Amelia Soares, a spokesperson for gold producer Harmony, one of the bigger miners that normally carry out underground mining on weekends.
Soares says mining companies were in a meeting with the state utility Eskom to try and resolve the crisis. Eskom says the countrywide power shortage could last up to four weeks.
For weeks, homes have been plunged into darkness for up to eight hours a day, businesses have been disrupted and accidents have been reported as traffic lights failed, leaving many in Africa's biggest economy infuriated with their government.
The government, distracted by a power struggle in the ruling ANC, is facing growing criticism for underinvestment in power generation but has assured investors and the public that healthy economic growth could continue with voluntary cutbacks in energy consumption.
The crisis would not threaten the country's ability to host the 2010 soccer World Cup, officials have said.
Dark madness
Analysts say South Africa's booming economy, which hit a near three-decade high at 5.4 % in 2006, could slow down and chided the government for failing to heed warnings years ago from Eskom to invest in new power plants.
The acute power shortage came about after Eskom, which relies on coal-fired power plants for more than 90% of its electricity supplies, took down some power plants for routine maintenance, normally conducted during the summer.
But unforeseen breakdowns at other plants and unusually heavy rains have made a huge chunk of its coal stockpiles wet and unusable, which cut power output even further. - Reuters
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