@DMRE_ZA
South Africa experienced more power supply disruptions last year, leading to a decline in mineral production across all commodities.
That's the word from the Minister of Mineral Resources and Energy, Gwede Mantashe, in his opening address to the 2023 Investing in Africa Mining Indaba in Cape Town on Monday.
"It is estimated that load shedding cost the economy about R1 billion a day," Minister Mantashe said.
"In November 2022, mining production contracted by 09% marking a 10th consecutive month of contraction in volumes produced."
But, he said during the same period, the mining company Gold Fields increased production by 10% due to what he said was the miner taking full advantage of the relaxation of licensing conditions for their own use which was reduced from 100 megawatts to just 1 megawatt.
"This cushioned them from the impact of load shedding as they were able to generate their own energy, and thus increased and maintained production," Mantashe said.
He also said the country was not benefitting from the "commodities boom" as a result of inefficiencies at ports and railways which led to the decline in export volumes for bulk commodities like coal, iron ore, manganese, and chrome.
"It is, therefore, urgent for the country to normalise freight operations," Mantashe said.
At the center of our current energy challenges is the decline in the Energy Availability Factor (EAF) from an estimated 75% to 49%.
"Therefore, the most feasible and logical option to exercise to resolve load shedding is by arresting the decline in the EAF."
"Failure to attend to and address the declining Eskom plant performance and subsequent higher stages of load shedding is an irritation to society and has the potential of pitting society against the government," he said.
Minister Mantashe said it's "our considered view" that the focus in resolving load shedding must be on, among others, improving EAF through a focused, funded, and planned maintenance of existing power stations.
He added that there should also be the procurement of emergency or short-term power from existing facilities and other private power plants and the purchase of additional electricity from neighbouring countries.
