Crippled South African mines look for power shortages to end

South African mining companies said Monday that they hoped to resume production later this week, but there was no sign of an end to power shortages that have put jobs and economic growth at risk.

The power shortage became a national emergency Friday, halting diamond, gold, platinum and other mines in the biggest African economy and helping send prices of precious metals to record highs while weakening the South African rand.
“This is happening at a bad time because gold and platinum prices are at record highs,” said Nick Goodwin, an analyst at a T-Sec. “Just when mining companies were beginning to smile, they get knocked down. What’s the use of having such high prices if you have no product to sell?”

Gold reached a record high Tuesday, just short of $930 an ounce. Platinum also hit an all-time high, of $1,735 an ounce, while silver commanded prices not seen for 27 years, reaching $16.76 in New York on Monday.

‘There may be a chance for platinum to visit $2,000 because of a supply and demand imbalance,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

International Herald Tribune