The recent hike in electricity tariffs will cost the South African mining industry an additional R2bn, according to a leading lobby group representative.

Chamber of Mines techno-economics assistant adviser Dick Kruger said that the hike will burden the mining companies, which are already affected by rising costs and decreasing commodity prices, according to a report in Mining Weekly.

The National Energy Regulator of South Africa recently accepted a proposal from the public utility company Eskom for a 31.3% interim hike in power prices from 1 July 2009 to 31 March 2010.

Kruger said that many mines are battling for survival and Eskom needs to develop a detailed funding model for its capital projects to breakdown what the funding costs are.