UPDATED ON:
WEDNESDAY, JANUARY 30, 2008
12:41 MECCA TIME, 9:41 GMT
 
NEWS AFRICA
S Africa set for month of blackouts
The power outage in South Africa has pushed the price of gold to record highs [EPA]

South Africa's parliament is set to hold an emergency session as people prepare for a month of blackouts due to severe power shortages.

The energy crisis, which analysts fear could severely damage the economy, has prompted opposition parties to threaten to bring a motion of no confidence against Thabo Mbeki, the country's president.
"Prepare yourself for four weeks of hell" the headline in one South African newspaper read on Wednesday.

Eskom, the country's largest electricity producer, is cutting electrictiy supplies by 4,000 megawatts for four weeks in an attempt to stabilise the power grid.

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South Africa's power cuts put lives at risk

The energy minister told Al Jazeera on Wednesday that the government accepted responsibility for the shortages and had not been timely in planning for the country's energy needs.

"We have been growing much more than we had anticipated. This growth in our economy is unprecedented in our country and as a result it has really affected an impacted our reserve margin," Buyelwa Patience Sonjica said.

"As we speak our reserve margin is between eight and 10 per cent when in reality the economy needs 15 per cent."

The oppostion says the government has been receiving warnings about an imminent power crisis for almost a decade but has failed to prevent it.

 

Gold production hit

South Africa is the world's second biggest producer of gold, and most of the country's mines ground to a halt amid electricity rationing last Friday.

 

The situation has driven up the price of gold and economists have warned that it could ultimately slow down the entire economy.

 

Some analysts say that the cuts could slash South Africa's growth to below 3 per cent this year, the lowest level in 14 years. 

   

Mining firms resumed production on Tuesday as state power utility Eskom pledged to restore 90 per cent of their electricity within days.

  

Alan Fine, a spokesman for AngloGold, said production had already resumed at Mponeng mine, near Carletonville, and the majority would be up and running by the end of the week.

  

"The rate at which we are going to ramp up production is very difficult to predict but we hope to be up to about 60 per cent by the end of the week," he said.

Source: Al Jazeera and Agencies
Related:
S Africa mines hope to reopen  
(28 Jan 2008)
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