Eskom's 15% tariff hike will result in the loss of 150 000 jobs in mining sector
The mining lobby group, the Mineral Council of South Africa has warned that 150,000 jobs would be lost if Nersa grants Eskom the requested tariff increase.
Eskom has asked Nersa for a 15% tariff increase over three years.
Minerals Council SA chief economist Henk Langenhoven says such large tariff increases will affect the mining industry.
This comes down to costs that will spiral out of control if we get these tariffs hike over three years - it will push the whole of the mining sector literally out of business.Henk Langenhoven, Chief economist - Minerals Council SA
If this happens the Platinum Mining Sector will also be in the same situation.Henk Langenhoven, Chief economist - Minerals Council SA
The problem is if we lose that number of mines and that number of jobs, Eskom will still get the money that they bargained to. They are getting about R24 billion at the moment and they stand to bargain R50 billion by the end of the three years.Henk Langenhoven, Chief economist - Minerals Council SA
Langenhoven says it is time Eskom start doing things differently. He says Eskom can't do the same thing over and over and expect a different outcome.
We are not saying no increase but we are saying this increase will be completely counterproductive, not rational if it's not combined with structural adjustment. this is not the solution.Henk Langenhoven, Chief economist - Minerals Council SA
Langenhoven says the Minerals Council of SA will be making a submission on Friday at the Nersa public hearing.
To hear the rest of the conversation, listen below:
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