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S Africa power cuts halt mining S Africa power cuts halt mining
(10 minutes later)
South Africa's biggest gold and platinum mining companies have suspended production because of a spate of recent power cuts.South Africa's biggest gold and platinum mining companies have suspended production because of a spate of recent power cuts.
They took the drastic measure after state power company Eskom said it could not guarantee supplies, raising fears of miners being trapped underground.They took the drastic measure after state power company Eskom said it could not guarantee supplies, raising fears of miners being trapped underground.
South Africa is one of the world's biggest producers of platinum and gold.South Africa is one of the world's biggest producers of platinum and gold.
The power cuts are a "national emergency", according to Public Enterprises Minister Alec Erwin.The power cuts are a "national emergency", according to Public Enterprises Minister Alec Erwin.
"We are viewing the next two years as being critical," he said but denied reports that the power cuts could hit South Africa's hosting of the football World Cup in 2010.
He said that the government must share the blame for the power cuts.He said that the government must share the blame for the power cuts.
Another minister said electricity rationing would be introduced. Price rise
Minerals and Energy Minister Buyelwa Sonjica said electricity rationing would be introduced as a "quick-hit" solution.
Goolam Ballim, chief economist of Standard Bank Group Africa's biggest lender, warned that the power cuts would reduce South Africa's economic growth.
"Power is like oxygen, it's essential for any half-modern economy,'' he said, according to Bloomberg news agency.
South Africa's three biggest gold producers AngloGold Ashanti, Gold Fields and Harmony have suspended production, along with the world's biggest platinum miner, Anglo Platinum.
The announcement has led to a big jump in the price of both precious metals on world markets, while shares in the four companies have slumped.
South Africa has already reduced electricity supplies to its neighbours.South Africa has already reduced electricity supplies to its neighbours.
This has affected countries such as Zimbabwe, Zambia, Botswana and Namibia. This has affected countries such as Zimbabwe, Zambia, Botswana, Mozambique and Namibia.