THE MINERALS Council warns that escalating electricity tariffs are driving up input costs for South African mining companies as production costs rose by 7.2% in April, with gold, coal and platinum group metals (PGM) experiencing the largest cost increases.
South Africa is a major producer of gold, coal and PGM, in addition to manganese and chrome, among other minerals.
Andre Lourens, an economist with the Minerals Council, yesterday said the rise in mining costs for SA producers was in line “with an acceleration in the pace of increase for the producer price index. High inflation rates for electricity, water, coke, petroleum, transport and storage significantly pressured mining inputs,” he said.
This comes after the National Energy Regulatory of SA (Nersa) approved a 12.74% electricity price increase for direct customers with…