The National Union of Mineworkers (NUM) is planning mass protest action over State-owned power utility Eskom’s decision to mothball five power stations in the next five years to make room for independent power producers (IPPs).

In an effort to “save” Eskom from bankruptcy and privatisation, as well as to prevent the loss of up to 50 000 direct and indirect jobs, the union said it would mobilise all its members across the mining, energy and construction sectors, as well as society at large, to protest against the signing of the inclusion of more IPPs into the national grid.

“We are going to go on strike, because this is a war we must win,” NUM president Piet Matosa said at the recent briefing, adding that government was not listening anymore and that the closure of the five coal-fired power plants would lead to rising electricity prices, in addition to significant job losses.

Eskom earlier this year came under pressure to cement long-outstanding power purchase agreements (PPAs) with renewable-energy IPPs, which came to a head in February, when President Jacob Zuma in his State of the Nation address directed Eskom to sign the PPAs.

However, the NUM said the cost of the decision was worrying and would lead to the financial distress of the parastatal and subsequent “backdoor” privatisation.

“With Eskom having to buy electricity from the IPPs, [the utility finds itself] having to close five power stations, which translates into about 10 000 direct job losses only in the power stations, and a further 40 000 individuals that might be without jobs in the surrounding [communities and mines] of the power stations,” the NUM said.

The power stations to be shut down are Hendrina, Kriel, Komati, Grootvlei and Camden.

The labour union called on government to review the decision with immediate effect, pointing out that, while it supported green energy, it did not “support backdoor privatisation of Eskom in the form of IPPs”.

“We will embark on rolling mass action to defend Eskom from being run down so that, [when it becomes] a burden to the State, it is sold for a cent.”

Earlier this month, Eskom acting CEO Matshela Koko told Engineering News that the financial implications for Eskom as a result of the decision to sign the PPAs cannot be dismissed.

“We will proceed as instructed, but there are consequences,” he said at the time.

Public Enterprises Minister Lynne Brown also previously warned that Eskom was operating at a surplus of 4 000 MW “on any given day”, owing to a drop in demand, a major shortfall in growth at well below the hoped-for 5% and electricity growth higher than 2% a year.

The NUM’s threats have emerged shortly after high-profile protest action undertaken by the Coal Transportation Forum on March 1.

Forum members blockaded roads in Pretoria en route to the Union Buildings during the protest, in reaction to Eskom’s estimate that the introduction of renewable- energy IPPs would result in 55.8-million tons less coal being burned yearly by 2022, which would reduce the amount of coal transported by road by 112.5-million tons over the coming five years.