SOUTH African-focused Sibanye Gold, which reported weaker second half earnings, plans to build a R3-billion solar-powered power plant to weather electricity shortages in Africa's most advanced economy.

Power utility Eskom has been struggling and mining companies, among some of the heaviest power users, have had to cut consumption by up to 20%. Sibanye said yesterday that it expected its solar-powered plant to generate 150 megawatts, about 10% of its requirements.

The gold producer expects the plant to be up and running in 2017.

Power makes up 20% of Sibanye's overall costs.

"It's a good first step to reducing reliance on Eskom and managing our cost base," chief executive Neil Froneman said.

Sibanye is also in the early phases of developing a coal-fired power station with the aim of being completely off the grid.

It paid a higher dividend despite a 60% fall in earnings in the second half. It said its 3.7% dividend yield is among the highest in the sector.

Sibanye runs older assets which, unlike new mines, do not require extensive capital expenditure, allowing it to pay out more cash to shareholders.

"For the foreseeable future our focus on dividends will remain and our shareholder base is there because we said we will maintain a benchmark dividend profile," Froneman said.

Normalised earnings, from which Sibanye's dividends are calculated, edged down 5% year-on-year to R1.2-billion. Normalised earnings exclude certain non-trading items.

Headline earnings per share, which strip out certain once-off items, totalled eight US cents, down 60% on the same period a year earlier.

The company has had to contend with lower prices for gold, which has been hammered mainly by dollar strength, forcing companies to cut jobs, halt projects and shut marginal mines.

South Africa-based mining companies sell gold in dollars and pay their costs in rands.

Sibanye said gold production for the second half was up 13% to 877400 ounces and totalled 1.59 million ounces in 2014.

Its shares rose 3.3% to R31.

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