The black-owned company was also considering increasing this to a 65 MW facility, which would be enough to power the entire mine, should there be any problems with State-owned Eskom's supply.

The company earlier this year began a study into how it would deal with the country's uncertain electricity supply situation, factoring in a cost of R168-million for power generation into the Frischgewaagd-Ledig project's bankable feasibility study (BFS).

After having considered options including heavy fuel oil generators, coal-fired power generation, hybrid solar-natural gas generation, and buying power from independent producers, Wesizwe decided that diesel-fuelled reciprocating engines would be the most economical one.

This was based on a limited period base load operation. The generators would be installed by April 2009, at the same price as what Wesizwe had factored into its BFS.

"We are very pleased with the outcome of the study, as the indicative impacts of any Eskom problems are significantly less than we anticipated, as is the associated risk," CEO Mike Solomon said in an emailed statement.

"It is clear from the study that we have a completely manageable situation with power availability for the project and the economics and risk thereof, and while we as management do not for one minute underestimate the serious implications of the Eskom situation, we have a clear, well researched and coherent strategy to deal with the situation," he added.

The measures that Wesizwe was taking in this regard would mitigate the power risk "to a minimum", the firm said.

The mine would only need less than 10 MW for the construction phase -- set to begin in September.

Eskom would be able to supply the mine with its total 65 MW requirement by end 2011, but the project would only consume this much by 2016.

Solomon said that Wesizwe was, therefore, "not unduly worried" that the power situation would impact materially on the project's progress or economics.

The company's stock was trading 6,12% up by 14:51 in Johannesburg, at R7,11 a share, following increases in the price of platinum.

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