Eskom tariff hikes will nuke gold industry, warns Minerals Council
SA could lose all but one of its gold mines and shed 150,000 jobs if Eskom is allowed to charge a 15%/year tariff increase over three years
SA’s gold industry will be destroyed if Eskom gets the green light for annual increases of 15% over the next three years, says the Minerals Council SA.
Once the largest source of the world’s gold, SA would be down to a single gold mine from the 21 held by listed companies, with production falling to just 20 tons a year from 140 tons in 2018, council executives said on Wednesday. The council declined to name the mine.
Three-quarters of SA’s platinum mines — the world’s largest source of the metal — would be made marginal or unprofitable — up from 52% now.
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