Thursday, January 28, 2010.

From Creamer Media in Johannesburg, I'm Shannon de Ryhove.

Making headlines today:

State-owned enterprise Eskom says that it's scaled back its eight-year coal forecast by 30%, because of weaker demand as a result of the economic recession and a delay in its build programme.

Eskom's chief officer for generation business Brian Dames says that the utility will need almost a third less coal than originally expected to feed its power stations by 2018.

However, while Eskom has reduced its long-term coal demand by 30%, Dames says that there's significant anxiety over where that coal will come from.

South Africa doesn't have coal mines with large enough resources to match Eskom's total current requirements and Dames has urged coal miners to make investments in new projects.

South African consumer inflation shot above the central bank's target range in December to 6,3%, official data showed on Wednesday, but was distorted by a base effect and should ease in the next few months.

The inflation rate was slightly below forecasts and economists said it should quickly return to the South African Reserve Bank's target range of 3 to 6%.

On a monthly basis, December consumer price inflation stood at 0,3% after remaining flat in November but the data is not seasonally adjusted. It was below forecasts for a rise to 0,4 percent.

Also making headlines:

Energy Minister Dipuo Peters will launch the second component of the eThekwini landfill gas CDM project on Thursday.
Transnet aspires to an 81-million tons a year coal export capacity.
Engineering and construction firm Grinaker-LTA completes a new prison in Kimberley.
And, South Africans are upbeat about the World Cup but analysts warn that economic expectations are too high.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.