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South Africa’s Main Electricity Producer Warns Of Possible Nationwide Blackout

South Africa’s Main Electricity Producer Warns Of Possible Nationwide Blackout

South Africa runs the risk of shutting down most of its electricity supply, after Eskom Holding SOC Ltd that generates 95 percent of the country’s power, declared an emergency due to a major failure in it generating unit.

The firm instructed metal producers to cut down on use and also raised the chances that it may have to cut power to some cities in the Africa’s largest economy.

Bloomberg reported that platinum price rose after the announcement on Tuesday. South Africa is the world’s biggest producer of platinum.

BHP Billiton Ltd., whose aluminum smelters are the country’s biggest power users, and Anglo American Plc said they would assist Eskom by cutting usage. Platinum and gold producers in South Africa use electricity to move workers in the world’s deepest mine shafts.

Eskom is spending $50 billion to replace aging equipment and add plants to avoid a repeat of 2008 blackouts that halted mines, including those owned by companies such as Anglo and BHP, for five days and paralyzed factories in the continent’s biggest economy.

The utility firm, which produces about 85 percent of its power from coal, said about 27 percent of its 41,900-megawatt generating capacity was out for maintenance earlier this week.

It has also shut one of two 920-megawatt units at its Koeberg plant, its sole nuclear operation, in Cape Town for repairs and refueling. The facility will return to service in the last week of December, Eskom said Nov. 10 Bloomberg reported.

Most industrial users have maintained power usage at 90 percent or below since 2008, said Shaun Nel, director at the Energy Intensive User Group of Southern Africa, whose 32 members include local units of BHP and ArcelorMittal.