Name of the Project
Thabametsi independent power producer coal-fired power station project.

Location
Lephalale, in South Africa’s Limpopo province, adjacent to Exxaro’s Grootegeluk coal mine.

Project Owner/s
Thabametsi Power Company, sponsored by Marubeni Corporation and Korea Electric Power Corporation (Kepco).

In October 2020, Kepco announced its withdrawal from its 50% stake in the Thabametsi project.

In November 2020, Marubeni announced that it would pull out of the Thabametsi project.

In another setback, lawyers representing environmental lobby groups EarthLife Africa and groundWork have said that South Africa's environmental ministry has set aside Thabametsi’s environmental authorisation.

EarthLife Africa and groundWork have previously argued that the project would have a "devastating climate impact", with emissions about 60% higher than those of State-owned power utility Eskom's recently built big coal plants, Medupi and Kusile.

Project Description
The Thabametsi power plant was one of two private coal power projects that had their bids accepted in October 2016 as part of the then South African Department of Energy’s Coal Baseload Independent Power Producer Procurement Programme, aimed at easing crippling power shortages in South Africa.

However, in November 2020, the plans for the project were set aside, after environmental justice groups Earthlife Africa and GroundWork launched litigation in 2016.

The project proposed the construction of a 630 MW capacity circulating fluidised-bed coal-fired power plant comprising two 315 MW units, which would be fuelled by Exxaro Resources’ Thabametsi coal mine.

The aim was to increase the plant’s capacity to 1 200 MW, according to the project’s climate change study and palaeontological impact assessment released in June 2017.

Potential Job Creation
Not stated.

Capital Expenditure
$2-billion.

The Public Investment Corporation and the Industrial Development Corporation withdrew their financing for the project in November 2020. The Development Bank of Southern Africa is reassessing the project to determine if it is in line with its policy of a “just transition towards a low-carbon economy”.

All South Africa’s private banks have already withdrawn their pledged funding for the project.

Planned Start/End Date
The project was included in the draft Integrated Resource Plan, or IRP2018, in August 2018 and was expected to be operational in 2021.

Latest Developments
Environment, Forestry and Fisheries Minister Barbara Creecy has noted the decision by the North Gauteng High Court to set aside the environmental authorisation for the Thabametsi coal-fired power station.

The Department of Environment, Forestry and Fisheries has said that it will abide by the order of the court and refer the application for an environmental authorisation back to the Chief Director: Integrated Environmental Authorisations for review and a decision.

The department has emphasised that it is committed to ensuring that the Constitutional rights of South Africans to an environment that is not harmful to health and wellbeing are always taken into consideration while ensuring that economic growth is not hampered. 

Key Contracts, Suppliers and Consultants
Doosan Heavy Industries & Construction Co (provisional engineering, procurement and construction contract).

Contact Details for Project Information
Marubeni Corporation, tel +27 11 290 6000 or fax +27 11 784 4846.