“The electricity situation in South Africa has worsened since 2005 and this, inevitably, has had consequences for Namibia, which has traditionally been reliant on imports from its southern neighbour, and the impact on the industry has been significant,” says the Chamber in its latest annual report.

“Fortunately, [electricity utility] NamPower has opted for an open and consultative approach with its major customers, which the Chamber has welcomed and is proactively supporting. Going forward, each operation will include the implementation of energy- efficiency measures and the purchase of diesel generators.”

It says that an understanding has been reached in terms of which production at mines is spared from load-shedding except where this is “absolutely necessary”, but even in such cases adequate notice is given.

“Unfortunately, the situation deter- iorated with Eskom’s supply problems and the mining industry has suffered considerable losses due to power outages,” the Chamber reports.

The Kombat copper mine, one of mining company Weatherly’s operations, became the main casualty when it suf- fered two power outages in November and December last year. The mine has had to cease produc- tion owing to flooding that occurred as a result of a lack of power for its dewater- ing pumps.

It has since been placed on care and maintenance and some workers have been relocated to other Weatherly operations, while some may face retrenchment.

The Chamber of Mines stresses the need for NamPower to concentrate on investments in local power-generation projects in view of expected increases in power demand as the mining indus- try is growing fast, in response to the booming international mineral commodities markets.

The Chamber believes that Namibia will remain vulnerable as long as Nam-Power is dependent on other countries in the region for its power supply.

The cooperation with NamPower has led to the formation of a joint NamPower-Chamber of Mines tech- nical task team to examine possible areas where the mining industry may participate in proposed power- genera- tion projects.

The Chamber has so far indicated to NamPower that the mining industry is prepared to buy power from the pro- posed Kudu gas-to-power station in foreign currency. NamPower has welcomed the offer and consultation is ongoing.

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