Investors will not be put off by the energy crisis that has swept South Africa and it will not limit its ability to stage the football World Cup in two years time, it has been claimed.

According to Public Enterprises Minister, Alec Erwin, the country's economic growth will continue and he said there was no risk to the supply of energy in 2010.

But the power blackouts have caused outrage in South Africa and Anton Eberhard, a business school Professor at the University of Cape Town, told the New York Times that the shutdown of mines was "extraordinary".

"That's a powerful message, massively damaging to South Africa's reputation for new investment. Our country was built on the mines," he said.

Eskom, the main power supplier has been unable to guarantee power supply to mines and this has left them closed.

But production restarted yesterday after the supplier managed to guarantee nearly 90 per cent power to some of the mines.

The crisis has been a long-time coming after a 1998 government report warned of potential electricity shortages in 2007.

But the Government has admitted its mistakes after Mr Erwin told the press: "The president has accepted that this government got its timing wrong."

Energy Minister Buyelwa Sonjica has also apologised to South Africans for what she described as an "unfortunate turn of events".

"I must take the opportunity to apologise to all South Africans for the hardship and inconvenience caused," she told Parliament, according to Reuters.

The crisis has not just spread into the mines as local people are experiencing days without power while Eskom rotates the energy cuts between neighbourhoods in a process of "load shedding".

Despite the impact on South Africa's residents, some believe that mining and heavy industry should be excluded from any future power cuts.

Cees Bruggermans, Chief Economist at FNB, urged regulators to "leave mining mostly alone".

Mr Bruggermans felt that other industries could adjust to the lack of supply by working different hours or changing their routines.

Source:

SAfrica sees no investment threat from power crisis, 30/08/01 15:33
http://africa.reuters.com/wire/news/usnL30706118.html

Power Failures Outrage South Africa, 31/01/08
http://www.nytimes.com/2008/01/31/world/africa/31safrica.html?_r=1&ref=africa&oref=slogin
http://www.nytimes.com/2008/01/31/world/africa/31safrica.html?_r=1&pagewanted=2

Leave mines alone or face permanent output loss, economist warns, 30/01/08 17:00
http://www.miningweekly.co.za/article.php?a_id=125734

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