South Africa’s platinum and gold mines are projected to shed just over 90 000 jobs in the next three years, following the above-inflation tariff increases that have been granted to Eskom.
According to a presentation by the Minerals Council of South Africa, “as many as 90 222 jobs would be at risk as a result of the MYPD4 [multi-year price determination 4] tariff increases”.
“We see the Eskom crisis as not just a crisis, but a potential disaster,” said Minerals Council chief executive Roger Baxter.
Earlier in March, the National Energy Regulator of South Africa (Nersa) announced that Eskom could increase tariffs by 9.41% in 2019, 8.10% in 2020 and 5.2% in 2021. While being far less than what Eskom had applied for – namely, an increase of above 15% in each of the three years – for mining, the price hikes mean an increase in production costs which the sector can ill afford.
The difference in tariff percentages applied for by Eskom and approved by Nersa means that an estimated 8 323 jobs were saved.
