Eskom has come under fierce criticism from platinum firms at the RBC Capital Markets platinum conference.

South Africa's energy supplier was criticised for the information it provides to mining companies surrounding power supply.

Ian Rozier, Chief Executive Officer of Eastern Platinum, said that Eskom's daily guidance did "not actually mean a lot".

"We have to go on what we are experiencing and it's not good," he said.

Much of the frustration stems from Eskom's refusal to grant power to various new mines and smelters despite that the fact that most new products are looking to generate a large percentage of the power they require.

But David Russell, acting Chief Executive Officer of Braemore Resources, said that self-generation could be a benefit to new projects.

He noted the example of Australian nickel mines, some of which are entirely self-sufficient for power creation, and said that they could absorb the costs because self-generation was part of "doing business".

Leon Esterhuizen, speaking on behalf of RBCCM, said that a lack of power supply could mean the market does not receive the platinum it needs.

"While the world needs more platinum the producers are being prevented from delivering by challenges such as restricted electrical power supply, limited and shrinking skills pool and sharply increasing capital and operating costs," he explained.

Source:

Platinum miners tear into Eskom, 19/05/08
http://www.miningmx.com/mining_fin/168734.htm

Power issues predominate at platinum presentations, 17/05/08
http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=53165&sn=Detail