Anglo Platinum, the world’s largest platinum producer, on Wednesday said it was able to operate its mines at full capacity with 80% of its power needs.
Spokesperson Trevor Raymond said the company’s smelting and refining operations remained in standby mode.
He said Anglo Platinum expected to resume smelting and refining next week, by which time it would have been allocated 90% of its power needs.
For its part, Harmony Gold Mining confirmed that it was allocated a further 5% electricity supply on Tuesday.
The company said that this means that its electricity supply now stands at 90%.
”Consequently the majority of our mines are working based on the strategy plan devised for this eventuality,” Harmony said in a statement.
”We have a varying staff complement on our mines, with no production workers on some mines, 60% or only care and maintenance workers on other mines, and the rest at full complement,” it added.
The gold producer said its higher-grade mines with 100% complement included Elandsrand, Randfontein, Tshepong, Evander and some of its operations in Virginia.
Those at 60% complement are Target, Masimong and Phakisa while the rest of the mines are focusing on project work or care and maintenance.
”We have stopped most of the support infrastructure and some of the metallurgical mills from operating during the country’s peak consumption periods. In some cases, hoisting of ore is done between midnight and five in the morning when the country’s consumption is at a low peak,” Harmony said.
Tuesday’s consumption levels across its operations were about 300MW and peaked at 400MW, which is its 80% allocation.
On Wednesday morning the company’s operations were again using 75% of the allocated power in view of the country’s daytime needs.
”At present there exists excellent communication between Eskom and Harmony and regular updates are being received on the power supply situation,” the company confirmed.
Eskom will be phasing in the mining industry’s power requirements and Harmony expects to be operating at the allocated 90% requirement on Thursday.
Public Enterprises Minister Alec Erwin said on Tuesday that the country’s mines should have 90% of their power back by Thursday.
”The target is on Thursday to ramp [the power for mines] to 90%,” said Erwin, briefing the media in Midrand about a meeting between government, the mining industry and Eskom.
Last Friday, most gold, platinum and diamond mines came to a halt because Eskom said it could not guarantee a stable power supply.
Erwin said 70% of power was restored by last Sunday but this was not enough for full productivity at the mines.
Additional coal
Meanwhile, Eskom said it needs 15-million tonnes of additional coal over the next three months including 5,4-million tonnes immediately, South African Chamber of Mines chief executive Zoli Diliza said on Wednesday.
”The task force committee is working out how we can assist with finding the additional 15-million tonnes which Eskom needs in the next three months,” Diliza said.
”We are looking at the issue as one of national importance. Everybody is coming together to resolve it,” he added.
Asked to comment on suggestions in the press that South African producers have focused on more lucrative export markets instead of ensuring domestic supply, Zili said: ”These people have not done their background checks. They need to look at the history of these power plants — they were not set up to burn export coal but the discard, lower-grade material which was produced as a result of export coal mining.”
Industry sources said on Monday that Eskom needed 5,4-million tonnes over three months. That news caused a spike in coal derivatives and physical prices of several dollars per tonne.
Diliza said South Africa’s major coal producers have formed a joint task force with the Chamber to find the extra coal Eskom needs and work in the national interest to resolve the crisis.
Doable
Asked if it would be difficult for producers to find an extra 15-million tonnes at such short notice, Diliza said: ”It is doable.”
Producers will have to divert to Eskom run-of-mine coal which would have been washed to upgrade to export quality material in order to meet this domestic shortfall, coal industry sources said.
South Africa exported about 66-million tonnes of coal in 2007. Exports are expected to average between five and six million tonnes a month in 2008.
There is a large difference in quality between export coal of typically just below 6 000kc/kg energy content and much lower energy content, higher ash domestic grade coal consumed by Eskom.
Eskom’s boilers are unable to consume export grade coal. If any export grade coal were to be obtained as an emergency measure by Eskom, it would need to be blended with domestic coal to be usable.
However, producers can divert run-of-mine coal which, before washing, is similar enough to Eskom grade coal to be used as it is, industry sources said.
The quantity of coal Eskom is seeking is so large that it must impact exports, whether producers are compelled to delay or cancel shipments or to try and buy export coal on the free market to maintain deliveries while diverting coal from the mines to Eskom, the sources said. – Reuters, I-Net Bridge