March 07, 2008, 14:00
The Chamber of Mines has welcomed the decision to marginally increase the supply of electricity to the mining industry, it said today.
In recent weeks the chamber has urgently been interacting with government and Eskom in an effort to persuade them to normalise mining sector power consumption levels, CEO Mzolisi Diliza said in a statement.
This followed industry agreement in late January to a 10% cut in consumption, as a short term emergency stabilisation measure, requested by Public Enterprises Minister Alec Erwin and Minerals and Energy Minister Buyelwa Sonjica.
The 260 megawatt increase announced earlier today by the public enterprises department represented about 5% of total mining industry electricity consumption. "The chamber notes that the increase will be neither immediate nor comprehensive, but will be introduced in a phased manner," he said.
Increase will save jobs
Most importantly, once implemented, the increase would deliver potential to save jobs and to minimise workplace threats to employee safety. With the mining industry being responsible for about 50% of South Africa's foreign exchange earnings derived from merchandise exports, there was the additional prospect of increased mineral sales and consequent alleviation of pressure on the current account of the balance of payments.
Over the past 18 months, on its own initiative, the mining sector had implemented various energy saving initiatives resulting in a reduction in its consumption of electricity by more than 4%. These measures came long before the introduction of power cuts and the mines were committed to becoming even more efficient electricity users.
The chamber called 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," Diliza said. - Sapa
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