The South African Government has announced that it will increase the power supply to mines to 95 per cent from 90 per cent.

The changes will be phased in over a two week period to ensure the electricity crisis is not worsened.

A statement from the Mining and Minerals Department said that the agreement would "alleviate the heavy disruptive burden and possible large retrenchments".

Eskom has restricted the mines to 90 per cent of their electricity needs and the power utility confirmed that it would allow an increase of up to 260MW in electricity supply.

"The criteria in determining this allocation will include minimising the disruptive impact on the mining industry, job losses and mine safety," the firm said.

However, Eskom has virtually no coal stocks at six of its plants according to reports from Reuters.

Four plants have no coal on the ground while two days of supplies remain at two other plants, sources in the industry have said.

"There's nothing on the ground at several plants. The conveyors are running straight into the plant from mines but there's no stock," the source said.

Meanwhile, Eskom has been labelled as irresponsible by the African National Congress (ANC) after announcing that it would stop any new construction developments.

The power provider also announced that it would take between four and six months to process the application of developments that require more than 100KVA.

A statement from the ANC criticised Eskom's decision saying: "Every effort must be made to ensure that the current problems in electricity supply do not negatively affect the building of projects of this nature.

"Such delays could undermine efforts to grow the economy, and slow the rate of important capital investment," the organisation claimed.

Eskom has stepped up the power supply to the mines in an attempt to guard against job losses but trade unions are ready to explore the possibility of suing Eskom.

Solidarity said it has appointed a multi-disciplinary commission to investigate claims against Eskom should the electricity crisis lead to any job losses.

"The mining industry has been granted temporary relief, but the effect of the electricity crisis on the economy is such that future job losses are a distinct possibility," read a statement from the union.

"Industries have been instructed to achieve a ten per cent saving in electricity usage. A worker who loses his job sacrifices 100 per cent of his income. A worker who loses his job is therefore disproportionately penalised in relation to other economic participants.

"It cannot be expected of employees to carry the burden of poor strategic and operational power provision," the union claimed.

Source:

S.Africa government confirms mines to get more power, 07/03/08
http://africa.reuters.com/business/news/usnBAN735222.html

Can Eskom be sued for job losses?, 07/03/08
http://www.thetimes.co.za/News/Article.aspx?id=722286

ANC labels Eskom as irresponsible, 06/03/08
http://www.thetimes.co.za/News/Article.aspx?id=721608

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