http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.31Change: -0.01
R/$ = 14.22Change: 0.03
Au 1292.99 $/ozChange: 1.84
Pt 1079.50 $/ozChange: 3.50
 
 
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 Letters About Us
 
 
 
Article   Comments   Other News   Research   Magazine  
 
 
Oct 29, 2010

Power connectivity rules have change

Back
Africa|CoAL|Efficiency|Eskom|Mining|Power|PROJECT|Projects|Resources|Technology|Africa|Energy
Africa|CoAL|Efficiency|Eskom|Mining|Power|PROJECT|Projects|Resources|Technology|Africa|Energy
africa-company|coal|efficiency|eskom|mining|power|project|projects|resources|technology|africa|energy



The announcement last week by London-listed resources group Xstrata regarding a R4,9-billion expansion of the Lion ferrochrome plant, in Mpumalanga province, offers a foretaste of what it is going to take to develop energy-intensive projects in power-stressed South Africa.

It is also arguably indicative of just how difficult it is going to be for mining businesses to align themselves with government’s mineral beneficiation policy aspirations.

Unlike previous beneficiation projects, when electricity supply was a given and it was merely a matter of securing the best price, the Xstrata-Merafe chrome venture was forced to undertake various energy initiatives to unblock the expansion project – a 360 000 t/y smelter that will increase Xstrata-Merafe’s total ferrochrome capacity to more than 2,3-million tons a year.

Firstly, it had to prove that it was doing all it could to reduce its energy consumption. Much of this was achieved through the deployment of its proprietary Premus technology, which consumes about one-third less electricity than other available smelting technologies – an industry leading average of 2,2 MW/t to 2,4 MW/t. It also introduced pelletising, which has reportedly improved overall efficiency, and committed to a range of other energy-saving endeavours.

But in order to secure a supply agreement from Eskom, Xstrata will also augment this grid supply through own generation. The company is studying the exploitation of discard-coal opportunities at its Tweefontein mines, which could eventually deliver 600 MW. This generation capacity could be built using four off-the-shelf modules of 150 MW each.

In announcing the project, Xstrata Alloys CEO Peet Nienaber even argued that the project was aligned with South African’s draft integrated resource plan 2010, owing to its energy efficiency and the use of electricity to create sus- tainable jobs.

Before reaching this point, the project had been marking time, while a firm Eskom power allocation was being negotiated.

Things have certainly changed since the days of those first smelter agreements.

Edited by: Terence Creamer
Creamer Media Editor

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Editorial Insight News
Much attention has been paid – appropriately so – to the circumstances that led to Optimum Coal Holdings becoming an asset of Tegeta Exploration and Resources; a company that is closely associated with the Gupta family’s Oakbay Investments. Glencore, the mine’s...
Two recent reports leave little room for doubt about the importance of urbanisation across Africa, as well as the urgent need to improve the way cities are being planned and managed. The World Bank’s latest Africa’s Pulse publication notes that 472-million Africans...
Standard & Poor's (S&P’s) assessment of whether or not to downgrade the South Africa’s sovereign rating in the coming two months will centre on the country’s weak growth outlook as well as the its fiscal risks, including the possibility that government might need to...
Article contains comments
More
 
 
Latest News
Environmental Affairs Minister Edna Molewa
Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO.     “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Mzwandile Masina
The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12.   Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $149 Close
Subscribe Now for $149