Platinum producers in South Africa can expect further risks of electricity shutdowns in the next few years, according to one government minister.

Mining companies saw output badly compromised at the start of 2008, when the national grid almost collapsed as state power utility Eskom struggled to fulfil its responsibilities.

However, Public Enterprises Minister Barbara Hogan has now warned that more black-outs are possible unless co-generation projects come online and energy-saving initiatives prove successful, Reuters reports.

According to the news provider, she said: "The electricity supply-demand balance during and after the winter 2010 period will be finely balanced.

"The risks of interruptions will increase as Eskom enters its summer maintenance season for the Eskom generation fleet."

Ms Hogan added that this risk "progressively worsens" between 2011 and 2013, or until the 4,800 MW Medupi power plant comes online.

Although the first of six 800 MW units is expected to be commissioned at the new facility in April 2012, there are concerns that delays could ensue over a funding shortage.

Eskom has pledged to invest R461 billion in order to protect against further outages and reduce the country's current 95 per cent dependence on coal-fired power stations.

South Africa is also expected to sign a range of contracts this month which will provide 1,143 MW from firms such as petrochemicals group Sasol and fine paper producer Sappi.

Meanwhile, Anglo American has revealed that it looking at the possibility of creating a new power station in Mpumalanga with the help of British firm Mott MacDonald, Sake24 reports.

The conglomerate has about 60 million tonnes of waste coal dumps at its Greenbank, Kleinkopje and Landau facilities, which could feed a 1,200 MW power station for 40 years.

As a result, it has enlisted Mott MacDonald to conduct a feasibility study to investigate the viability of establishing a 300 MW modular power station at one of four possible sites on SA Coal Estates.

Anglo American's platinum unit, Anglo Platinum, is the world's largest producer of the precious metal.

Sources:

UPDATE 1-SAfrica facing increased risk of power failures (26/03/10)

Anglo looks for power solutions (25/03/10)

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