At the state-owned power company Eskom Holdings SOC Ltd. After announcing late Monday that it would cut 6000 megawatts from the grid to prevent a full collapse, including Sibanye Gold Ltd., the world’s largest platinum miner, Producers within the mine recalled workers from the mine and stopped mining the ore.
(Eskom), South Africa’s state power company, downgraded its power cuts to 4000 megawatts, or 4000 megawatts, overnight, a level that remained at that level on Tuesday morning. The utility has experienced a series of failures as it tries to maintain aging power plants and to address the failures of two giant new power stations, Medupi and Kusile. The company also accused the heavy rain of soaking coal for fuel.
Iraj Abedian, chief executive of Asia Pacific Investment and Research Services, said in a telephone interview from Johannesburg: “this does mean that the economy is heading for recession. After negative GDP growth in the last quarter, there is unlikely to be such a substantial and sustained disruption in the economy to achieve positive growth. “
For miners, the industry-wide shutdown comes as South African producers seek to capitalise on the gains of rising palladium, rhodium and gold prices.