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 — if the National Energy Regulator of SA (Nersa) approves the debt-laden state utility’s application for the three-year tariff increase of 15% a year. The consequence of these closures would be the loss of 150,000 jobs as these mines and other mineral producers, smelters and refineries cut back production to remove unprofitable chunks of their businesses, said council chief economist Henk Langenhoven. Price up 523% since 2006 Tariff ...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.