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From Creamer Media in Johannesburg, I’m Sheila Barradas.

In our lead story this week:

Platinum mining giant Anglo Platinum has already shed 30 000 oz of the metal because of South Africa's electricity shortage, and says that this could increase to as much as 150 000 oz.

Angloplat joint acting CEO Duncan Wanblad:


Before South Africa’s power crisis hit, the miner was on track to produce 2,55-million ounces of platinum, but 2008 refined production is now likely to only reach 2,4-million ounces, depending on the severity of the power constraints for the remainder of the year.

South Africa's mining industry has suffered vast production losses after State-owned power utility Eskom could not guarantee uninterrupted power supply, leading to a week-long industry-wide shutdown.

Platinum prices have hit record highs on worries that power problems will hit output badly. However, Wanblad says that the mining industry will come up with solutions to the power crisis, some of which include cogeneration or efficiency measures.

Meanwhile, the company has announced that it will spend as much as R11,5-billion in capital over 2008, and will go ahead with its Twickenham project.


AngloGold Ashanti has warned the industry that South Africa's power supply crisis will have a significant impact on future gold production.

The recent shutdown of the mining industry and subsequent ramp-up in production will see the producer lose some 400 000 oz of gold production this year.

CEO Mark Cutifani explains that if power is sustained at the current 90% level future production at local operations will be some 200 000 oz less each year.

Meanwhile, the company has commissioned an asset portfolio review to improve its operational performance. CEO Mark Cutifani:


Mining giant BHP Billiton has held extensive consultations with its own and Rio Tinto shareholders, who have indicated “a clear understanding of the logic” of its bid to buy the rival group.

BHP Billiton announced last week that it will launch a formal offer for Rio Tinto, of 3,4 of its shares for every Rio Tinto share.

However, Rio Tinto urged investors to take no action on the bid, which chairperson Paul Skinner says “significantly undervalues Rio Tinto and its prospects”.

The combination of BHP Billiton and Rio Tinto will position the combined company to meet the demands of customers, including China and India.


Also in this week’s Mining Weekly online:

The world's top diamond producer, De Beers, says that 2008 looks to be a "challenging" year for the industry owing to a slowdown in the global economy that could dampen demand for diamonds.


Official data shows the total gold output of South Africa, which until recently was the world’s top gold producer, has decreased by 6,5% in 2007.


Vancouver-based Eldorado Gold will consult Turkey's Ministry of Environment and Forestry on reopening its Kisladag gold mine in the country, after a Turkish high court ruled that it had insufficient information to make a decision on the merits of a case brought against the mine's environmental permit.


Australian coal-miner Resource Pacific says that it has begun talks with a third party, which could result in a “more attractive” proposal than a bid for the company from diversified miner Xstrata.



Anglo Platinum says that it is in negotiations with customers to move to a market-related contract price for its rhodium sales, after the price of the white metal tested levels near $1 800/oz.



And in this week’s Mining Weekly magazine, out on Friday, read our cover story on the high demand for ferrous metals.

We also report on diamond beneficiation taking place in Botswana; how AngloGold Ashanti plans to tackle fatalities and injuries, and an exclusive interview with De Beers chairperson Nicky Oppenheimer.

Finally, don’t miss our feature on motors, drives & mechanical power transmission.


That’s a round up of this week’s stories on Creamer Media’s Mining Weekly. For more on these and other stories, visit miningweekly.com