http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.80Change: -0.12
R/$ = 11.06Change: -0.09
Au 1167.10 $/ozChange: -11.95
Pt 1201.50 $/ozChange: -9.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 23, 2012

Coal miner Exxaro to submit five renewable energy bids

Back
Exxaro CEO Sipho Nkosi speaks to Mining Weekly Online about the company's intention of entering the energy sector. Camerawork: Nicholas Boyd. Editing: Darlene Creamer.
Belfast|Construction|Johannesburg|Africa|CoAL|Cogeneration|Eskom|Exxaro Resources|Industrial|Pipelines|Ports|PROJECT|Projects|Renewable Energy|Renewable-Energy|Resources|Transnet|Africa|Botswana|South Africa|Grootegeluk Mine|Medupi Power Station|Clean Energy|Cleaner Energy Initiatives|Coal Miner|Coal Producer|Cogeneration|Electricity|Energy|Energy Markets|Energy Sources|Renewable Energy Capacity|Renewable Energy Projects|Northern Cape|Cogeneration|Infrastructure|Power|Rail|Sipho Nkosi|Operations|Pipelines
Construction||Africa|CoAL|Cogeneration|Eskom|Industrial|Pipelines|Ports|PROJECT|Projects|Renewable Energy|Renewable-Energy|Resources|Transnet|Africa|||Cogeneration|Energy|||Cogeneration|Infrastructure|Power|Rail||Operations|Pipelines
belfast|construction|johannesburg|africa-company|coal|cogeneration|eskom|exxaro-resources|industrial|pipelines-company|ports|project|projects|renewable-energy|renewable-energy-company|resources|transnet|africa|botswana|south-africa|grootegeluk-mine|medupi-power-station|clean-energy|cleaner-energy-initiatives|coal-miner|coal-producer|cogeneration-industry-term|electricity|energy|energy-markets|energy-sources|renewable-energy-capacity|renewable-energy-projects|northern-cape|cogeneration-person|infrastructure|power|rail|sipho-nkosi|operations|pipelines
© Reuse this



JOHANNESBURG (miningweekly.com) – South Africa’s second-largest coal miner Exxaro Resources is moving ahead with plans to generate clean energy, CEO Sipho Nkosi said on Thursday.

Exxaro, which established a joint venture (JV) called Cennergi with an undisclosed third party, is planning five renewable energy projects – two solar and three wind.

The JV would submit tenders under the Department of Energy’s (DoE’s) ‘request for qualification and proposals for new generation capacity’ in the second bidding window, which closes on March 5.

In total, the DoE was seeking to procure 3 725 MW of renewable energy capacity from independent power producers (IPPs) between 2012 and 2016. The first bidding window closed in November last year.

Meanwhile, Exxaro continued to explore opportunities in the energy markets with a focus on cleaner energy initiatives. Nkosi stated that it was good for South Africa to have the right mix of energy sources.

Exxaro, which is South Africa’s second-largest coal producer, also reported that a prefeasibility study for the development of a 600 MW to 1 200 MW coal-fired base-load power station in the Waterberg, in Limpopo, was under way.

The company selected four base-load IPPs and would announce the preferred bidder in the first half of 2012. Further, nonbinding term sheets for the off-take of 1 150 MW of electricity have been signed between Exxaro and industrial off-takers.

Construction of a 14 MW cogeneraion plant at the miner’s Namakwa Sands project, in the Northern Cape, was expected to start in the second quarter of 2012 and a prefeasibility study for a 60 MW cogeneration plant at its Grootegeluk mine was expected to be complete in the first half of the year.

Further, the first half of 2012 would see a clearer indication of the potential of the evaluation of underground coal gasification opportunities on Exxaro’s coal tenements in South Africa and Botswana.

COAL GROWTH

Meanwhile, Exxaro would continue to grow its coal division as the country has an abundance of coal reserves, which were cheap to mine, said Nkosi.

The Grootegeluk mine expansion project, in Limpopo, which would supply State-owned power utility Eskom with 16.4-million tons a year of coal for the Medupi power station, progressed within its R9.5-billion budget. The mine expansion is 72% complete and would deliver first coal in May 2012.

First coal production at the proposed greenfield Thambametsi development project, adjacent to Grootegeluk, was expected during 2016/17. The project would supply coal to a base-load IPP.

Further, the bankable feasibility study of Exxaro’s Belfast project was expected to be complete by the second half of 2012. Start-up and first production was expected in 2014.

Nkosi pointed out that its coal business would continue to seek alternatives to export the company’s increased coal volumes, however, continued good performance from Transnet Freight Rail (TFR) was expected.

He welcomed Transnet’s infrastructure initiatives, as increased ports and rail capacity would enable the coal industry to increase production and meet the export demand.

Transnet is embarking on a R300-billion, seven-year investment programme to expand South Africa’s ports, railways and pipelines.

This would enable Exxaro to build and strengthen its coal export leg and feed into the unlocked capacity, Nkosi stated.

Exxaro’s coal division reported a 24% increase in net operating profit to R3.4-billion, up from R2.6-billion in the year ended December 2010, as well as a coal revenue increase of 21%, reaching R12.7-billion in the 2011 financial year, from R10.5-billion in the comparative period last year. This was attributed mostly to higher selling prices and stronger international demand.

The diversified miner increased its export volumes by 20% to 4.9-million tons, boosted by better performance from TFR.

However, its power station sales fell 11%, owing to a 24% drop in coal production at Eskom-tied operations on the back of adverse geological conditions, the closure of the Mooifontein opencast operation at the Arnot mine, as well as the flooding in Mine 2 at Matla.

Domestic non-Eskom sales fell 9%, mainly because of production challenges at its NBC mine.

Coking coal output declined 11%, because of lower demand from Arcelor Mittal South Africa, which was partially offset by higher output at the Tshikondeni mine.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Kenya Power plans to spend 8.7-billion shillings ($96.6-million) on new power distribution stations to improve electricity supply aimed at curbing chronic power shortages that companies say have discouraged investments. Kenya Power, the country's main electricity...
Themba Mkhwanazi
Anglo American Inyosi Coal and Eskom “are broadly aligned” regarding Eskom’s empowerment imperatives for the New Largo project, Anglo American coal business in South Africa CEO and Anglo American Inyosi Coal chairperson Themba Mkhwanazi reported on Friday. In a...
Barack Obama
Barack Obama last year told a cheering crowd in Cape Town that a $7-billion plan to "Power Africa" would double electricity output on the world's poorest continent and bring "light where currently there is darkness". A year later, the US president's flagship project...
Article contains comments
More
 
 
Latest News
South Africa’s National Treasury on Friday reissued its amended request for proposal (RFP) for the five-year multibillion-rand project to replace the legacy systems currently in use with an enterprise resource planning (ERP) solution for an integrated financial...
Systems Automation and Management Durban manager Weyers van der Merwe, Richards Bay dry bulk terminal manager Mandla Mpungose and Umfolozi TVET college principal Sam Zungu.
The handover of specialised computer equipment to the Umfolozi Technical and Vocational Education and Training College would address one of the greatest challenges faced by Transnet Port Terminals (TPT) at the Port of Richards Bay – a lack of skills in a highly...
Through hosting the WorldSkills 2014 competition’s mechatronic pre-national finals, industrial control and automation company Festo would promote and support skills development. Festo said the mechatronic competition would give schoolchildren, trainees and students...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
As the City of Ekurhuleni continues its bid to develop the largely industrialised metropole into the continent’s first aerotropolis, executive mayor Mondli Gungubele has committed the city to creating a predictable, stable and enabling business environment in which...
While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
The Malawi government has launched a $50-million project to upgrade the Kamuzu barrage, on the Shire river, an outlet of Lake Malawi, which is used to control the flow of water from the lake to the lower Shire area. The project will run from this year to 2017 and...
  Our new Technical and Vocational Education and Training (TVET) Colleges will replace the Further Education and Training (FET) Colleges which have served us for the past twenty years.  The buildings will be the same and most of the staff will be the same but as the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks