1% Power: Gold Fields 'deeply concerned'
I-Net Bridge | Thu, 04 Feb 2010 16:34[miningmx.com] --GOLD FIELDS, South Africa's largest gold producer, said it was "deeply concerned" about the power situation in South Africa. "Our power has already doubled in two years," said Gold Fields CEO Nick Holland. Now, Eskom's proposed tariff hikes would increase the company's power costs by a further 146% over the next three years. Cumulatively, price increases between 2008 and 2013 would amount to R3bn a year, Holland said. Eskom has proposed tariff increases of 35% over each of the next three years but the request has been strongly opposed by business and unions. "I don't believe that what we are seeing here is the solution," said Holland. Holland, who presented Gold Fields' case to the National Energy Regulator of South Africa during its recent hearings on the proposed price increases. He said the tariff increases place untenable pressure on income generating assets. Instead he said the "fruits" arising from those assets should be shared, perhaps through a form of taxation. "A broadbased tax would be preferable to input cost increases, which would damage the income-earning structure of industry," Holland said. "Affordable power for all South Africans is a critical imperative," said Holland. The question is how do we do it without harming critical assets, he said. "We are not going to find a solution over three years for a problem that developed over 15 years," Holland said.
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