Implats in talks to secure electricity at Leeuwkop

JOHANNESBURG, April 21 (Reuters) - South Africa's Impala Platinum (IMPJ.J: Quote, Profile, Research, Stock Buzz) said on Monday it was in negotiations with state-owned electricity company Eskom about getting long-term power for its Leeuwkop project.

Implats, the world's second-biggest platinum producer, said it had secured electricity from Eskom for the construction phase of the project, and resolving long-term electricity supply would pave the way for building to start.

Eskom [ESCJ.UL] has been struggling to cope with a power crisis which led to the country's mining industry shutting down for five days in late January.

Mines are operating at an average 95 percent of their usual power supply and Eskom has said it will not be able to guarantee full power until 2012 when extra generating capacity is expected to come on stream.

Implats said this month the main impact of electricity shortages would be at future growth projects, including Leeuwkop mine, which it bought as part of its 297 million pound ($591 million) purchase of Afplats last year.

If the power problems are sorted out, the Leeuwkop project would likely go to the board for approval in September, Chief Executive David Brown told Reuters this month.

Implats also said it had been granted new order mining rights at Leeuwkop, which will produce 160,000 ounces of platinum a year at full production.

"We welcome the approval of this new order mining right. The Leeuwkop project supplements our South Africa resource base and is a key component of Implats' long-term growth plans," Implats Executive Director Les Paton said in a statement.

South Africa's mining charter, implemented in 2004, transfers all mining rights to the government and demands that mining companies meet a list of conditions before they can get new licences.

Implats has said it plans to boost overall mine output to 2.5 million ounces by 2012, but the power issue had put the timing in question, Brown said on April 3. (Reporting by Sue Thomas; Editing by David Hulmes)