Cynthia Carroll, CEO, Anglo American
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Anglo's Carroll on emergency power mission

Posted: Sun, 27 Jan 2008

[miningmx.com] -- CYNTHIA Carroll, Anglo American CEO, will meet with ministers and representatives from Eskom tomorrow (January 28) to discuss the power crisis which has left the UK group's 2.6 million oz/year platinum mines idle.

"She will be in the country tomorrow," said Pranill Ramchander, an Anglo American spokesman said in an interview from Johannesburg. "Cynthia is to chair a steering committee internally with Anglo to decide what to do about the closed mines.

"She is then also due to have discussions with key government stakeholders as well as Eskom," he said.

Anglo Platinum confirmed on January 25 that it had not sent miners to work at its underground mines after Eskom CEO, Jacob Maroga, issued a letter to the country's mining companies saying the utility could not guarantee power.

It is possible that the mines, and those of other companies, could stand idle until well into this week as government and business set down guidelines on how much power they could feasibly use. Eskom ran out of spare generating capacity earlier this month, a development that has resulted in rolling blackouts throughout the country.

Radio reports suggested workers had returned to work but it was likely key staff working on routine maintenance of the mine were permitted to access the mines. Said Ramchander: "As we stand now, the mines are still closed."

Anglo Platinum, which is currently being managed by two acting CEOs following the resignation of Ralph Havenstein in August, is the world's largest platinum producer. It said earlier this month that heavy rains had flooded its key Amandelbult mine would mean there would be a platinum output loss of between 50,000 to 70,000 oz.

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Disruptions to other platinum mines, including Northam Platinum and Lonmin, had placed upward pressure on the platinum price which pushed to a series of new record high last week. The metal was last trading at $1,669/oz.

Meanwhile, a special task-team consisting of industry and labour representatives, Eskom and government, which was formed at an emergency meeting yesterday (January 26) met again today to find a way forward through the crisis.

Dick Kruger, who is representing the Chamber of Mines of SA, said he hoped to make media statements either tonight or early tomorrow (January 28) on progress achieved. In essence, mining companies want guidelines on how much power they could feasibly use in terms of Eskom's directive to cut back on power.