Mines and smelters in South Africa will be forced to run on 90 per cent of their normal power needs until 2012 as the energy crisis continues.

Eskom Finance Director Bongani Nqwababa said that the restrictions are unlikely to be lifted until the first new coal-fired plant begins operation.

When asked whether power supply would be upped sooner, he replied: "Unfortunately not."

The news will come as a blow to mining firms who suffered five days of closure last month after Eskom could not guarantee power.

Industrial firms have been supplied with 90 per cent of their normal needs and this looks set to continue after Eskom's latest announcement.

Meanwhile, the South African Government is likely to introduce rationing to help the shortfall with industry facing ten per cent rationing.

Anglo Platinum has already revealed that it expects the power problem to cut its output of refined platinum by three per cent during 2008.

Despite the mounting problems caused by the power crisis, industry and Government figures have urged parties to remain united in finding a solution to the problems.

Speaking at a mining conference in Cape Town, Cynthia Carroll, Chief Executive of Anglo American, said: "Whatever the reasons for the present situation, this is not a time for finger-pointing but for all key players to work together in finding solutions."

Eskom is also planning to use its power credit market that allows companies to buy and sell their energy efficiency.

According to the Financial Times, the firm is studying measures in Brazil to see if South Africa can learn anything from the measures the South American country took to handle its recent power shortage.

Sources:

Eskom Says 90% Power Limit to Stay in Place to 2012, 13/02/08
http://www.bloomberg.com/apps/news?pid=20601116&sid=auH6_QiJ5n30&refer=africa

Industry rations its expectations, 14/02/08
http://www.ft.com/cms/s/d8c4396a-daa1-11dc-9bb9-0000779fd2ac,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fd8c4396a-daa1-11dc-9bb9-0000779fd2ac.html&_i_referer=

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