South African Unions Threaten Strike Over Possible Job Cuts

South African unions are threatening to strike if mining companies follow through with threats to cut jobs due to power rations.

South Africa has suffered a series of blackouts due to a lack of generating capacity, resulting in power rationing that has hit the mining sector particularly hard.

Gold producer Gold Fields says it may cut up to 6,900 jobs as it scales back production at lower grade mines due to lack of power.

The country's Congress of South African Trade Unions (COSATU) says it will strike if workers lose their jobs due to the power crisis, which it blames on government negligence, according to local media reports.

The South African Communist Party says it will engage in a period of mass activism in the coming months and will "fully support COSATU struggles in defence of jobs".

On Friday, power company Eskom announced a R18.5bn contract with Hitachi Power Africa to construct boilers at its Bravo project coal-fired station.

French firm Alstom will undertake the turbine island works for R13bn.

The power station is expected to be complete by 2017.

By Elizabeth Clifford-Marsh