Impala Platinum (Implats, IMP), the world's second-largest platinum producer, on Thursday said it has pushed out its Leeuwkop and Marula Merensky projects, worth R10-billion, until there is more certainty over power supplies in South Africa.

Reporting its results for the year to end June 2008, Implats said its capital expenditure increased to R5.4-billion during the year.

The company is planning to spend R30-billion over five years but half of that is maintenance capital.

David Brown, CEO of Implats, said in an interview that the Leeukop project, which it acquired with its African Platinum deal, and the development of the Merensky reef at its Marula project had not yet been approved by the Implats board.

Implats has secured enough power from Eskom to proceed with three new shafts in Rustenburg for its Leeuwkop project but Brown said the company wanted to ensure there would be enough power to operate the mine once the shafts were sunk.

The project requires an additional 60MVA of electricity.

"We have pushed these projects out ? because Eskom is clearly not in a position to give us certainty at this time," Brown said.

Mines were forced to cut their electricity demand after January's near national blackout forced the closure of the country's mining operations for about six days.

The bulk of South African's mines have been operating at 90 percent of their average power requirements for seven months since then.

Investment falls rapidly

Roger Baxter, economist at the Chamber of Mines, said on Tuesday that planned investment in the mining industry over the next five years could be reduced by between R16-billion and R25-billion as a consequence of the 10 percent power reduction forced on mines operating in the country.

Speaking at a conference on the mining and metallurgical industry's response to the power crisis, Baxter said a survey of mining companies revealed that jobs were also at risk.

Mining employment is likely to reduce "substantially" if the 10 percent cut in power supplies to South African mines is maintained indefinitely, warned Baxter.

The mining industry helps employ, directly and indirectly, about one- million people.