Several new mining projects in South Africa, including platinum mines, have been put on the back burner because there is insufficient power to run them.

Chamber of Mines Assistant Adviser, Dick Kruger, said he could not give specific details but there were platinum projects that could not continue their operations because of a lack of power.

As a result, decisions on new mining ventures are likely to be delayed until there is certainty surrounding power supply in 2013 when the Medupi coal-fired plant comes in.

"We are in for a very hard five years," Mr Kruger told Business Day.

Business Unity SA said it was alarmed by the news and said that blackouts were already costing South African businesses "millions".

Minerals and Energy Minister, Buyelwa Sonjica, said the country was experiencing a serious problem and said the government would meet next week to discuss the number of options open to them.

"There's no need to panic about future investments," she added.

Source:

South Africa: Power Crisis Threatens to Sink Major Projects, 18/01/08

Ÿ Adfero Ltd