Mines can be �anchor customers� for power producers

In a report released at the ongoing Mining Indaba in Cape Town on Monday, the World Bank called on mining companies in Botswana and other mineral-led sub-Saharan African countries, to work closely with electricity utilities in the region, in order to meet the growing energy demands.

While the economic and business case for the power, and mining sectors integration is strong, the report shows that this opportunity has largely been undeveloped. The report also reveals that the mining sector’s demand for power in sub-Saharan Africa is likely to triple between 2000 and 2020 to more than 23 000 MW.  This could overtake non-mining demand for power in some countries. The report argues that miners, which often generate their own electricity rather than buying it from a public utility, could save hundreds of millions in costs by doing so, while helping to bring energy to impoverished African nations.