RE: one word10 Dec 2019 14:47
Below from our risk assessment power outages, no mention of insurance
South Africa and Tanzania have both faced power supply constraints over recent years, but these have mainly been resolved in South Africa now further to the continued gradual integration of the new Madupi and Kusile power stations.
MITIGATION
Managing energy usage is an operational necessity, given the benefits to the operations of managed and optimised power planning and usage, an environmental imperative in order to combat climate change, as well as a financial objective, given rising electricity prices. Petra therefore aims to reduce energy consumption and increase energy efficiency wherever possible.
The Company continues to monitor closely developments in the renewable energy environment in order to assess a viable alternative or complementary energy supply in the future.
FY 2018 RISK DEVELOPMENTS AND MANAGEMENT
The quality of power supply across the South African operations was very stable throughout FY 2018. However, the risk of strike action at certain of Eskom’s generating sites has recently surfaced, and could result in disruptions of supply in FY 2019. However, such disruptions are unlikely to have a material impact.
The Company is equipped to manage the disruption of requests for load curtailment from the national utility, Eskom, with available back-up generator capacity at all the South Africa operations, which can cater for a 10% load reduction if required.
In Tanzania, the Company’s power supply was also stable in FY 2018. Petra has back-up power in place at Williamson which can supply the majority of the mine’s requirements in the event of an outage.
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