Rain slows SA coal mining

Johannesburg, South Africa — MINING REVIEW.COM — 18 March, 2008 – Anglo American Plc – the world’s second-largest mining company – has revealed that rain has shut or partially closed three of its nine coal mines in South Africa, reports Bloomberg News.

Anglo spokesman Pranill Ramchander told Bloomberg News today that the mines affected were New Denmark, New Vaal and Kriel.

State-owned power utility Eskom Holdings Ltd. – which generates about 90 percent of its power from coal – is implementing rolling blackouts across South Africa as equipment failure and wet, cold weather push demand beyond its capacity, says Bloomberg News.

Eskom is supplied with some of its coal from Anglo operations. BHP Billiton Ltd., Xstrata Plc and Exxaro Resources Ltd., which also supply coal to Eskom, weren’t immediately available for comment.

Sentula Mining Ltd.  – a smaller Eskom coal supplier – is producing coal below normal levels because of the rain, director Clint Moorcroft told Bloomberg.

South Africa is also the biggest supplier of coal to European power plants.