Sibanye Gold’s Production Not Affected by Reduced Power Usage

Mining Weekly reported yesterday that Sibanye Gold Ltd. (NYSE:SBGL) has not experienced any production losses since South Africa’s Eskom requested that the company reduce its power consumption by 10 percent.

As quoted in the market news:

The company, which was last year spun out of gold major Gold Fields and was entrusted with the majority of Gold Fields’ South African assets, said that the electricity-saving request followed an initial request to reduce consumption by 20%, owing to a significant loss of generation capacity from Eskom’s coal-fired power stations.

Sibanye said that it had previously, in cooperation with Eskom, developed contingency plans to accommodate requests of this nature.

Sibanye said:

The company is implementing the agreed measures to reduce its power usage as requested and does not expect to incur any production losses, unless the situation again escalates. We will continue to assist in the national effort to secure the grid, while managing the supply constraints to our business.

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