Production outlook improves for SA mines

South Africa's mining industry continues to incur massive losses but the outlook to have production restored has improved since the weekend.

Mining houses say Eskom has guaranteed an improved rate of electricity supply and some workers could go underground today for maintenance work to ensure safe working conditions.

At AngloGold Ashanti limited production has commenced. South African mines will have to find new ways of reducing power consumption. The sector is expected to reduce future consumption by 10%. For now Eskom has stepped up power supply, which will enable them to prepare for full production.

No one can say when full production will resume, however, there is a general sense that a full scale crisis has been averted for now. AngloGold Ashanti says production has started at four mines.

All the big industrial users, including the mines, will again meet with Eskom and government departments tomorrow. The miners, especially, are hoping for more good news.