Eskom's proposed price hikes could leave SA with just one gold mine

31 January 2019 - 11:23 By ALLAN SECCOMBE
The Minerals Council SA has warned that SA's gold industry faces destruction if Eskom gets its way with a 15% price annual price hike.
The Minerals Council SA has warned that SA's gold industry faces destruction if Eskom gets its way with a 15% price annual price hike.
Image: Reuben Goldberg

SA's gold industry will be destroyed if Eskom gets the green light for annual increases of 15% over the next three years, says the Minerals Council SA.

Once the largest source of the world's gold, SA would be down to a single gold mine from the 21 held by listed companies, with production falling to just 20 tons a year from 140 tons in 2018, council executives said on Wednesday. The council declined to name the mine.

Three-quarters of SA's platinum mines — the world's largest source of the metal — would be made marginal or unprofitable — up from 52% now — if the National Energy Regulator of SA (Nersa) approves the debt-laden state utility's application for the three-year tariff increase of 15% a year.

This article was first published by BusinessLIVE (Paywall)



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