Gold mines welcome power push

Following a meeting this morning between Eskom and industrial electricity consumers, AngloGold has commenced the process of bringing back into production all of its underground mines and their associated gold treatment plants. It is anticipated that all mines will be back in full production by the end of next week, it said.

These plans are based on an expectation that it will be able to draw on 90% of its demand prior to last week's shut-down, it added.

Indications are that it will not immediately be in a position to process surface sources in the Vaal River area due to the reduced power supply.

However, the company will continue to consider means of increasing energy efficiency measures in discussions with Eskom in order to bring surface sources to account so as to return to normal production.

"It is not possible at this time to estimate the operating and financial consequences of the current events," it said.

Further details will be provided when the company presents its fourth quarter results on February 7.

Phasing in carefully

Gold Fields (GFI) said it had been informed by Eskom that 80% of total average power consumption will be restored to Gold Fields' mines by tonight and that, if the national situation allows, to 90% by Wednesday.

"The restoration of power will be phased in, in a carefully controlled manner with consideration for health and safety matters, and in close consultation with Eskom to ensure the safe and sustainable resumption and build-up of production.

Eskom has undertaken to give the industry at least four hours warning prior to any future interruption in supply," the gold mining group said.

- I-Net Bridge