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Mines resumed underground maintenance work today despite power crisis
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January 27, 2008, 17:15
South African mining companies were allowed to resume underground maintenance work today as a power crisis that has crippled the country's mines entered a third day.
Mineral extraction, however, was still not permitted after weekend crisis talks. Authorities says diamond, gold, platinum, coal and other mining companies will get some power to allow workers into mines, some of the world's deepest, to secure them and pump out water to ensure they are safe when full power supplies resume.
Mining is a key sector of the economy. It generates at least R200 million daily. Economists say the shut-down underscores the seriousness of the threat that power cuts pose to the entire economy.
It was not clear when power would be fully restored, but mine officials were glad to be able to secure the mines. The decision was reached after weekend meetings between mining companies, government officials and state utility Eskom.
"This is a very positive step. Under the difficult circumstances it is big progress from Friday," says Willie Jacobsz, a spokesperson for gold miner Gold Fields.
Another meeeting scheduled for Wednesday
A spokesperson at rival Harmony Amelia Soares says another meeting on Wednesday would determine how the industry could resume production under a plan that would also require the miners to cut back power usage.
South Africa's power crisis became a national emergency on Friday, stopping 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.
Government assurances to worried investors and an infuriated public that healthy economic growth could continue with voluntary cutbacks in energy consumption, and that the power crisis would not threaten the country's ability to host the 2010 soccer World Cup, have met calls for heads to roll.
Plunged into darkness
For weeks, homes have had to do without electricity 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 angry at their government.
Analysts fear the booming economy, whose growth hit a near three-decade high at 5.4 % in 2006, could slow down and say the government ignored warnings as far back as 10 years ago from Eskom to build new power plants.
Eskom's worst power crisis started after the utility took down some power plants for routine summer maintenance. But unforeseen breakdowns at other plants and unusually heavy rains have made coal stockpiles wet and unusable, worsening the crisis for the utility, which mainly relies on coal-fired power plants. - Reuters
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