The mining industry wants rapid action to turn around South Africa’s economy which it says is on the edge of a cliff.
Describing Eskom as being in the “dwang” and responsible for much of the economic crisis in the country, representatives of the Minerals Council welcomed government’s decision to allow mining houses to generate electricity for own use.
Minister of Mineral Resources and Energy, Gwede Mantashe, speaking on the first day of the annual Investing in African Mining Indaba currently taking place in Cape Town, confirmed that power generation for own use would be allowed without any licensing requirements.
“Companies just need to be registered and then can run ahead,” he said, indicating that the government understood the impact that Eskom’s inability to deliver enough power was having, not only on mining but on business all round. “It has forced us to take some serious decisions - which is why we are allowing mining companies to generate their own electricity,” he said.
Roger Baxter, Minerals Council South Africa CEO, said the mining industry could install more than 1500MW in solar and other sources of electricity generation with the next 35 months.
He said having met with new Eskom CEO Andre de Ruyter twice within ten days of his appointment it was clear that there was increased understanding of the precarious state of affairs in the country.
“Most concerning for me is why we need a crisis to do what is right for this country,” said Mxolisi Mgojo, EXXARO Resources CEO and president of the Minerals Council South Africa.
He said everyone knew what the challenges and problems were and there was no point in regurgitating what was wrong or even what was needed. “We now need action. This is not just about the mining industry, but a country issue. This economy is on a cliff’s edge and there is realisation that there is no more time to talk.”
He said just as important was to stop assigning blame as that was just resulting in more inaction.
