Load shedding could return if mining production ramped up, warns Kuben Naidoo

JOHANNESBURG - Former Reserve Bank deputy governor, Kuben Naidoo, has warned that load shedding could return if mining production is ramped up over the coming months.

Load shedding has been suspended for about three months now with the government taking credit for the reprieve seen by households and businesses.

But Kuben told delegates at the Operation Vulindlela conference in Rosebank on Tuesday that the poor performance in the mining sector also had the unintended consequences of keeping the lights on.

The mining sector continues to be under significant strain.

A lower demand for commodities, an increase in input costs as well as infrastructure challenges have worsened the sector’s productivity.

A PWC report says the record levels of performance and shareholder returns seen during the post-COVID rebound have also started to fade off.

This means the energy-intensive sector is putting less strain on the power grid.

While the government says it's single-handedly behind the lack of load-shedding, Naidoo disagrees.

"My personal view is that half of the reason we don’t have load shedding is because the mining sector is in a deep recession. If you switch on the mining sector, I do think load shedding will return, so we still need to continue to invest in renewable energy and other energy sources so we can break that constraint."

The Operation Vulindlela conference is set to wrap up on Wednesday.