Improved Eskom Generation Reduces Power-Reliability Risk for South African PGM Sector

Published: Sep 8, 2026 15:12

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[SMM Flash] South Africa’s electricity system continued to show improved generation reliability through the winter period, according to a September 7 update from the Minerals Council South Africa. Eskom’s average Energy Availability Factor reached 75.6% in July before easing to 71.2% in August, with the decline largely attributed to increased planned maintenance rather than deteriorating generation performance. Electricity demand nevertheless remained weak, with August peak demand of 28,498 MW well below the 34,029 MW recorded in August 2021.

For South Africa’s electricity-intensive PGM mines, concentrators and smelters, improved power availability reduces the immediate risk of operating disruptions. However, the Minerals Council said electricity costs for the mining sector increased by approximately 1,185% between 2003 and 2025, underlining continued structural cost pressure despite better supply reliability. Improved generation therefore supports operational stability but does not remove electricity-price pressure on PGM margins.

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