Johannesburg - South Africa's leading gold, platinum and diamond mines were at a production standstill Monday for the fourth day running after state electricity supplier Eskom last week ordered them to halt mining to save power. After meeting with Eskom to discuss the energy crisis that has plunged homes and businesses across the country into darkness repeatedly over the past two weeks the mining companies said they were still uncertain of when they would be able to resume production.
Eskom had agreed at the weekend meeting to supply the mines with enough power for essential maintenance work. But it gave no word on when they would be able to send workers underground again.
The company's top three gold producers AngloGold Ashanti, Harmony and Gold Fields, leading platinum producer AngloPlatinum and diamond mining giant De Beers all ceased production Friday after being told by Eskom they could face unannounced power cuts. Some smaller mining companies were untouched.
In the event of a power cut at a mine, power to the shaft elevator could be interrupted, leaving miners stranded deep underground. Although the mines have backup power supplies these are for use in emergencies only.
Gold and platinum prices soared to record highs Friday on the back of the production stoppages before easing slightly Monday.
The daily loss in earnings to South Africa's mining industry, which employs around 450,000 people, has been estimated at over 200 million rand (28 million dollars). Steel and petroleum production have also been affected.
Until Friday heavy industry had been spared by Eskom loadshedding or the threat of it. Loadshedding is Eskom's term for cutting power to some areas or customers when demand threatens to exceed supply from its ageing power stations.
The government has declared the blackouts a national emergency and proposed a series of measures to cut electricity consumption, including rationing and solar power.
