Eskom crisis costing country R1bn a day
JOHANNESBURG - The Minister of Mineral Resources and Energy, Gwede Mantashe, said load-shedding has cost the country an estimated R1 billion a day and led to a decline in mineral production.
Mantashe delivered the opening address of the 2023 Investing in African Mining Indaba held at the Cape Town International Convention Centre (CTICC) on Monday.
The Mining Indaba takes place from February 6 to 9, 2023, under the theme Unlocking African Mining Investment: Stability, Security, and Supply.
It brings together global leaders, captains of the industry, and investors to engage on the future of mining and explore ways to attract investments in African mining.
Mantashe said South Africa (SA) experienced more power supply disruptions in 2022.
“This led to a decline in mineral production across all commodities. It is estimated that load-shedding costed the economy about R1 billion a day. In November 2022, mining production contracted by 0.9 per cent marking a 10th consecutive month of contraction in volumes produced.”
However, the minister said SA mining company Gold Fields’ production increased by 10 per cent during the same period.
“It is our considered view that Gold Fields’ performance was in part because of the reforms on embedded generation which they took advantage of following the amendments to schedule two of the Electricity Regulation Act (ERA) wherein the licensing requirement for generation projects for own use was increased from one megawatt to 100 megawatts, and ultimately removed altogether.
“This cushioned them from the impact of load-shedding as they were able to generate their own energy, and thus increased and maintained production,” Mantashe said.
He said at the centre of the country’s current energy challenges is the decline in the Energy Availability Factor (EAF) from an estimated 75 per cent to 49 per cent.
“The most feasible and logical option to exercise to resolve load-shedding is by arresting the decline in the EAF. Failure to attend to and address the declining Eskom plant performance and subsequent higher stages of load-shedding is an irritation to society and has the potential of pitting society against government.”