South Africa Miners Ready to Help Plug Part of Power Deficit

(Bloomberg) --

South African mining companies plan to build 609 megawatts of electricity generating capacity, if they can get official approval for the projects.

The mainly photovoltaic solar projects would generate power for the miners’ own use, according to the Minerals Council, which represents the biggest mining companies operating in the country.

South Africa has been beset by power cuts as state power utility, Eskom Holdings SOC Ltd., struggles to maintain its fleet of coal-fired power stations and pay down debt.

The Minerals Council said the following companies have plans to build their own power stations:

Sibanye Gold Ltd. has environmental and ministerial approval for the first 50-megawatt module of its planned plant, but needs permission for at least another 150 megawatts to make the project economically viable, said James Wellsted, a company spokesman. The project will be financed and managed by a “third party,” he said.

“We also do see government engaging with business around alternative energy projects,” said Neal Froneman, Sibanye’s chief executive officer. “There is a recognition by minister that we are part of the solution and he is trying to open the doors and facilitate these projects.”

Users generating as much as 10 megawatts for their own consumption should be exempt from requiring licenses, said Wido Schnabel, chairman of the South African Photovoltaic Industry Association.

“For those who can build bigger than that, award those licenses,” he said. The process to procure more generating capacity must happen as soon as possible, Schnabel said. “We’re wasting days.”

--With assistance from Prinesha Naidoo and Felix Njini.

To contact the reporters on this story: Antony Sguazzin in Johannesburg at asguazzin@bloomberg.net;Paul Burkhardt in Johannesburg at pburkhardt@bloomberg.net

To contact the editors responsible for this story: John McCorry at jmccorry@bloomberg.net, Dylan Griffiths, Alastair Reed

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