Mining Weekly reports that the Chamber of Mines of SA (CoM) on Friday opposed State-owned power utility Eskom’s proposed 19.9% tariff increase application.  

It warned that the increase would send SA into a vicious downward spiral of higher electricity prices, lower growth and lower electricity consumption.  Presenting at the National Energy Regulator of SA’s (Nersa’s) hearings, CoM chief economist Henk Langenhoven said Eskom would be a key contributor to a no growth economy and credit downgrades – and the mining industry would take a significant knock.  “The impact on loss-making mines will be disastrous, putting tens of thousands of jobs in jeopardy.  The Chamber estimates that the proposed increase would result in a R3.21-billion increase in costs, which would mean that the operations of around 66% of all gold and platinum mines would be unsustainable, and could result in around 48,000 additional job losses,” Langenhoven said.  The CoM suggested Nersa should pursue “the least damaging solution” to deal with Eskom’s impending cash crunch.

• Read this report in full at Mining Weekly
• Read too, SA mining will lose 48,000 jobs if ‘dire’ Eskom tariff granted, at Miningmx

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