By James Macharia
JOHANNESBURG, Jan 31 (Reuters) - Fresh electricity supply problems in South Africa hit hopes in the mining sector on Thursday for an early return to full production after a five day hiatus.
State utility Eskom [ESCJ.UL] had agreed to pump-up supply to the country's diamond, platinum, gold, coal and other mines to 90 percent by Thursday, after a power shortage halted their operations for the five days to Wednesday.
Mining firms that had resumed blasting and digging on Wednesday after Eskom increased their power supply to 80 percent, said they would continue mining, but were now unable to increase their production levels as they had hoped.
"We have no indication when they can ramp up (to 90 percent), but it will be as soon as possible," Andrew Etzinger, a spokesman at Eskom, said.
The power shortage has spooked investors in Africa's biggest economy, and is likely to slow economic growth, analysts said. It has driven precious metals prices to historic highs and hurt the rand currency. The fresh setback on Thursday sent platinum to an historic high of $1,741 per ounce <XPT=>.
President Thabo Mbeki's cabinet says the power crunch is a national emergency and faces stinging criticism for failing to avert the crisis. Opposition members of parliament called for heads to roll at a special session of parliament on Wednesday.
Mbeki has apologised for the cabinet's failure to heed warnings years ago to invest in new power generation, but this has not soothed public anger with weeks of power cuts of up to six hours a day.
"This was always seen as a leading developing country, the power crisis has done immense damage to that reputation," Ian Cockerill, Gold Fields <GFIJ.J> chief executive officer said.
"My cell phone's melted," he told reporters when asked if overseas shareholders in Gold Fields were worried.
"They are not best pleased at all."
Gold Fields and bigger rival AngloGold Ashanti <ANGJ.J> said they were producing within the 80 percent power supply levels.
Anglo Platinum <AMSJ.J>, the world's top producer of the metal used to make jewellery and clean car exhausts, said it was still mining at full capacity, also on the 80 percent power supply, but was not processing the metal. The company hoped more electricity would be available next week for that to take place.
Unveiling a plan to help manage the crisis in parliament on Wednesday, Minerals and Energy Minister Buyelwa Sonjica told South Africans to save energy.
"GO TO SLEEP EARLIER"
"Go to sleep earlier so that you can grow and be cleverer. Boil less water," she said to jeers from opposition MPs.
Critics worry that the lingering crisis could scupper South Africa's successful hosting of the 2010 soccer World Cup, but the government insists the soccer spectacle will run smoothly.
Analysts also fear the power shortage will put the brakes on South Africa's booming economy, which the government wants to grow by more than 6 percent in the long term to fight poverty.
Eskom says even when the present capacity shortage is bridged the country still faces a bumpy five years ahead.
Eskom has even asked that South Africa not be promoted as a major investment destination.
The power firm plans to spend 300 billion rand ($41.41 billion) to boost power generation by 2013 but has warned things will get worse as it starts rationing power as from March.
-- See related factboxes [ID:nL25784985]; [ID:nL29263924]. (Reporting by James Macharia, editing by Philippa Fletcher)
