mining houses | SA Radio .com

SA’s high unemployment rates are swept in front of Eskom’s door

Posted on 23/01/2020 Leave a comment

Mining houses and corporate businesses are accusing Eskom for the high unemployment rates since their pathetic service delivery is causing uncertainty in the economy.

Several institutions announcing in recent weeks that they would need to start retrenchments, unemployment has increased alarmingly rapidly and even greater retrenchments are provided.

The uncertainty caused by Eskom in the supply of electricity has forced many mining houses to generate self-sufficient power, but which is far more expensive than using the national power supply.

Eskom is also accused of being directly responsible for the poor economic situation and the fact that foreign investors are not interested if power supply cannot be guaranteed in South-Africa.

Unemployment has now reached the 29% level, which is the highest in history, and employment is estimated at 52% according to figures applicable for December.

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SA mining houses are closing one after the other due to Eskom load shedding

Posted on 12/12/2019 Leave a comment

South Africa’s mining houses close one after the other because it has become too risky to let their workers work underground during load shedding.

It costs billions of rand to stop underground mining activities and still have to pay workers even though there is no production for the whole week.

Economists point out that Eskom is crushing the country’s economy to such an extent that it will take years to recover, but the impression is left that the power supply has no sympathy, and the government is powerless.

The load shedding has opened the door wide for a follow-up recession, thereby causing the second recession within two years.

With Phase 6 likely to last until the end of the week, business people are also holding their breath as Eskom shrugs.

Eskom now claims that necessary and unplanned “repairs need urgent attention” otherwise the entire network will collapse, a spokeswoman said.

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Eskom could be facing yet another corruption scandal with regards to the high demand of coal

Posted on 19/09/2019 Leave a comment

Competition in the coal industry is influenced by the small number of mines that have to meet the high demand for coal.

The large coal mining groups therefore have a firm grip on the industry, and while Eskom is struggling to keep up with its R440bn debt burden, its bargaining power has dropped to a low.

Mining houses are aware of the state of affairs, and two of the largest mines, South African Energy Coal (Saec) and Seriti Resources, are apparently in the midst of the battle to obtain contracts.

If the Competition Commission approves an agreement, 45% of all coal Eskom purchases will come from one mining group.

The rest of the coal at Eskom apparently comes mainly from the same mining house, which raises the question of how such an agreement can be reached with the Competition Committee’s approval

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