DBCM Resumes Diamond Mining as SA Power Supply Retunes

De Beers is expected to resume production at most of its six diamonds mines, following an agreement between the power company Eskom and the Chamber of Mines to restore electrical power supply.

De Beers Consolidated Mines (DBCM) Managing Director David Noko announced Tuesday afternoon that Eskom will restore power supplies to 80 percent of total requirements, increasing to 90 percent of supply by the end of business on Thursday.

DBCM will immediately resume production at its underground Finsch Mine; Kimberley Mines, including the operations of smaller scale contractors (both mines are in South Africa’s Northern Cape), and at The Oaks and Venetia Mine in the Limpopo Province. The company will make a decision on opening the remaining two mines following the increase in power supplies to 90 percent later this week, the company said in a release.

Late last week the miner ceased production from its six mines, reducing its power consumption – and its mining operations – due to a severe national power shortage. De Beers was joined by most other miners in the country, causing a rise in gold and platinum prices in global markets.

Problems with limited power supply reached across the border into Namibia, where De Beers local mining partnership Namdeb has been running at 60 percent capacity, according to Managing Director Inge Zaamwani. Namdeb is directly linked to the South African power grid, getting its electricity from Eskom.
 

Eskom blamed the government for the shortage, accusing it of failing to invest in the country’s infrastructure.

Noko said he regarded the joint approach adopted by the involved parties as important in finding a speedy solution to restore supply after the four-day shut down.

De Beers said it lowered its energy consumption by at least three percent in 2007 from the levels consumed in 2006.