Major South African miners do not want to generate their own electricity but platinum juniors are willing to take self-generation projects on.

According to Dick Kruger, assistant adviser for technoeconomics of small-scale mining and mining in Southern Africa, it would not be workable for mining firms to generate their own power.

Instead, he said that a more sensible option would see major miners develop back up power options.

Wesizwe Platinum is ready to create its own power generation at its 230,000 t/m platinum mine.

Eskom is unable to guarantee power for the project because it is a new mine, meaning that self-generation is necessary, Mining Weekly reports.

Mike Solomon, Chief Executive Officer of Wesizwe Platinum, said that it needed to have a contingency plan if Eskom could not deliver power.

"It is, therefore, worth our while to spend a little bit more on providing for supplementary and back-up power, and our risk assessment exercise on the issue indicates it will not impact materially on the economics of our project," he explained.



Source:

Major miners resisting self-generation, but juniors stepping up to the power plate, 29/08/08
http://www.miningweekly.com/article.php?a_id=141191